Public authority units and offices servicing public authorities: interpretational doubts concerning subject determination in the area of VAT tax

Abstract

This paper is based on the research conducted by Tax Advisers – Kancelaria Doradztwa Podatkowego S.C. K.K. Kunowscy, Gdansk. The author argues that, during a comprehensive management of municipality finances, it is necessary to include risk management of tax regulation. The research showed that various tax controversies, primarily regarding VAT (as far as tax-payers are concerned) entail a serious financial risk for municipalities. The author also points to the fundamental causes of an increase in VAT-related tax risks for the municipalities. In conclusion, the financial consequences of these tax controversies for the economy of municipalities are described, and ways of minimizing them suggested.