On May 15, 2026, the Sejm passed amendments to the Tax Ordinance and the Fiscal Penal Code, a crucial change for businesses. These regulations, which are scheduled to take effect on October 1, 2026, introduce two fundamental changes, one long-awaited, the other generating considerable and justifiable controversy. These changes (if implemented) will radically reshape how businesses and citizens are protected from tax authorities over time.
The end of instrumental initiation of proceedings
The first new, and potentially beneficial, measure is the proposed repeal of Article 70, paragraph 6, point 1 of the Tax Ordinance. This change eliminates the ability to suspend the statute of limitations upon the mere initiation of proceedings for a fiscal crime or misdemeanor. The call for repealing this provision has been raised in public debate for years. It was often abused by tax offices. Tax proceedings were initiated just before the expiry of the standard five-year period, solely to interrupt the statute of limitations.
While the removal of this unfavorable regulation is a step in the right direction, the devil is unfortunately in the details. According to the transitional provisions, the old rules will continue to apply to ongoing proceedings. Furthermore, the tax office will retain the right to initiate proceedings under the old rules before the statute of limitations expires, calculated from the start of the new regulations, meaning this mechanism could remain in effect until the end of 2031. An additional factor weakening this change is the introduction of a new premise: the statute of limitations will be suspended upon the initiation of tax avoidance proceedings, which could create a new loophole for the tax administration.
The tax office will demand repayment of the debt even after many years
The second change, which has sparked opposition from many legal communities, involves the repeal of Article 44, paragraph 2, of the Fiscal Penal Code. Previously, this provision guaranteed an important principle: the punishability of a fiscal offense involving the depletion of a public debt ceased upon the expiration of the statute of limitations on that same debt. After this provision is deleted, officials will be entitled to pursue time-barred tax from citizens or businesses through criminal proceedings.
As if that weren't enough, the bill introduces a new Article 15, paragraph 1a, into the Fiscal Penal Code. This provision imposes on the perpetrator of a prohibited act the obligation to pay the monetary equivalent of the reduced public liability, even though the liability has already expired. In practice, this will create a situation in which a statute of limitations-expired tax liability can still be effectively enforced through fiscal penal proceedings. This will lead to the possibility of imposing penalties and recovering receivables even several years after the liability arose, even when businesses are no longer required to retain accounting records.
The Ministry of Finance, however, claims that this solution will prevent the shortening of the criminal liability period for the most serious tax offenses, for example, in cases involving tax carousels. The Ministry also claims that the new tool will not target ordinary errors, but such assurances and limitations are not directly included in the text of the adopted law.
The amendment passed in mid-May deprives taxpayers of the fundamental guarantee of security previously provided by the statute of limitations. Although the legislature met some of the business community's demands by eliminating the mechanism for initiating proceedings, it also removed the systemic shield protecting against endless government claims. The changes planned for October mean that the statute of limitations on taxes will no longer be an insurmountable barrier for the tax authorities. However, before this can happen, the bill must be passed by the Senate and signed by the President.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of May 18, 2026.
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