GAAR, the general anti-tax avoidance clause, has existed in the Polish legal system since 2016. This clause is based on disregarding the tax consequences of transactions made mainly for the purpose of obtaining tax benefits, i.e. reducing or not taxing the transaction. The clause applies to economically unjustified activities leading to the use of tax regulations in a manner contrary to the intention of the legislator.
In 2021, decisions using the GAAR clause were issued in an amount more than twice as large as in all previous years of the clause being in force. The upward trend is expected to continue. The reason for this state of affairs is seen in the more and more inconsistent and ambiguous tax law provisions.