Polish National Register of Debtors
The entry into force of the Polish Act on the National Debtors Register on December 1, 2021, constitutes an extremely important modification of the legal order in the area of restructuring and bankruptcy in Poland.
The main assumption behind this amendment was to adapt the solutions adopted in the Act on amending the Act – Bankruptcy Law and certain other acts (Journal of Laws of 2019, item 1802) to the solutions proposed in the National Debtors Register. This adaptation will consist in enabling the conduct of bankruptcy proceedings (or their elements) by means of an ICT system.
Principles of operation of the system
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KIELTYKA GLADKOWSKI KG Legal attended a conference on Extended Producer Responsibility (EPR), including the deposit and deposit system, as well as the implementation of the Single Use Plastics (SUP) Directive.
EXTENDED PRODUCER RESPONSIBILITY (EPR)
EPR is a producer-focused mechanism that aims to reduce waste, particularly plastic waste, by increasing recycling and decreasing dependency on new raw materials. EPR moves the cost of managing post-use products partially or fully from local governments to the producing industry.
A key assumption of EPR is to consider the whole “life cycle” of products, i.e. from design, production and use to proper waste management. “Life cycle” includes designers, manufacturers, distributors (including product marketing), vendors, and customers/consumers. The EPR concept also assumes that appropriate economic incentives can turn waste into a valuable raw material, which should be thought about from the design stage.
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The previous energy market model in Poland was based on a monopoly of five different electricity suppliers.
Since 2007, the energy market in Poland has been liberalised and both companies and individuals are free to change their energy supplier. However, elements of a monopoly remain, as energy production and transmission is still the responsibility of these companies. Energy trading, on the other hand, is completely free. All elements of this market are licensed and supervised by the Polish Energy Regulatory Office. At present, the energy sector is being restructured and put in order, especially as regards competition. In the near future, the situation related to the stable position on the energy producer market may change drastically due to the new energy policy and the gradual abandonment of energy production from fossil fuels. This may lead to the liberalisation of the energy production and transmission market and an increase in the number of energy traders.
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Real estate investment is one of the most lucrative forms of capital multiplication. The real estate market is constantly growing and it is the least risky sphere of capital investment, however, it requires significant investment funds. To increase access for the less wealthy, special real estate funds are created to allocate assets to investors who want to start their adventure on the real estate market.
Types of real estate funds
The division into different categories of funds is made on the basis of the risk and rate of return of a given investment. They range from conservative to aggressive and are defined by both the physical attributes of the property and the amount of debt used to capitalize a project. We distinguish the following types:
The term “core” refers to real estates located in high-quality locations with high-quality tenants. Core property investors are looking to generate stable income with very low risk. These properties require very little hand-holding by their owners and are typically acquired and held as an alternative to bonds, generating stable and consistent cash flow to their owners and their values tend to be the least volatile.
- Core Plus Real Estate Funds
In terms of property class and profit prospects, these funds are similar to core funds, but with the low or moderate risk profile. Core plus property owners typically have the ability to increase cash flows through minor property improvements, management efficiencies or by increasing the quality of the tenants. The difference from previous funds is the fact that profit is not so easy to predict and core plus investment requires more active participation in property.
- Value – Add Real Estate Funds
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Hidden dividend – The Polish New Deal
Costs from related parties will not be allowed as tax costs. This will happen when these costs meet the statutory definition of the so-called “hidden dividend”. The Polish New Deal introduces so far unknown concept of “hidden dividend”. The act in art.16 sec. 1d indicates that certain costs constitute a “hidden dividend” if:
- the amount or timing of those costs is in any way dependent on the taxpayer making a profit or on the amount of that profit; or
- a prudent taxable person would not incur such costs or could incur lower costs in the case of comparable supplies performed by a person not connected, within the meaning of Article 11a(1)(3), with the taxable person, whereby in determining those costs the provisions of Articles 11c and 11d shall apply mutatis mutandis, or
- these costs include remuneration for the right to use assets which were owned or co-owned by a partner (shareholder) or an entity related to a partner (shareholder) before the creation of the taxpayer.
The provisions being introduced aim to end the practice of extracting profits from companies. However, if an entity makes a gross profit and the costs associated with transactions with related parties do not exceed its value, the provisions will not apply.
Related parties
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