Evaluation of the Cooperative Compliance Programme pilot phase in Poland

With this project, the European Commission provided support to the Polish Ministry of Finance, National Revenue Administration (NRA).  The project aimed to evaluate the success and effectiveness of the Cooperative Compliance Programme (CCP) pilot phase, to identify its weaknesses and propose recommendations for further improvement. The project carried out by Kozminski University provided the NRA with data and insights to inform  the desired direction of changes in CCP procedures.

Context 

On July 1, 2020, the Polish National Revenue Administration (NRA) has launched a pilot CCP for large taxpayers in Poland. The CCP aims transform the relationship between the NRA and large tax payers to create a better enabling environment for economic growth to contribute to faster legal certainty and improve taxpayers’ compliance. Based on the experiences of other countries introducing CCP Polish Ministry of Finance decided to evaluate the CCP pilot stage to determine how to further customize the CCP to the specific needs of the country, ensuring its popularity among Polish taxpayers.

Support delivered 

The evaluation study employed a dual approach, incorporating both quantitative measures (periodic CAWI surveys) and qualitative methods (IDI interviews, workshops) conducted by Kozminski University team to gather comprehensive insights. Additionally, anonymized tax and financial data from the population under study were analysed as hard data. The project consisted of 4 formative evaluations conducted from early 2022 to the end of 2023. 

The results of these evaluations were presented as reports to the NRA and Ministry of Finance. Additionally, the findings were publicly showcased during the concluding TAIEX-TSI Workshop held in the form of a conference organized at Kozminski University. The conference, which took place on Friday, 02.02.2024, brought together representatives from various sectors, including qualifying CCP companies, tax advisors, NRA representatives, academic and business press representatives.

The event accommodated both online and offline participation. Details about the conference, titled "Mutual trust, understanding and transparency. First experiences and prospects of the Cooperative Compliance Programme" are available at the webpage:

https://www.kozminski.edu.pl/en/first-experiences-and-prospects-cooperative-compliance-programme

The study showed that companies in CCP pilot stage were in better economic condition (e.g. net profit, rate of return on assets etc.) and had well organised tax processes within the organization.

Additionally, lack of mutual trust, asymmetry of mutual transparency, and insufficient mutual understanding have been found.  The report included recommendations aimed at strengthening cooperation. Four areas of needed changes were identified: 1) communication, 2) promotion and consultation, 3) pre-audit procedures, 4) taxpayers service within the CCP. 

Results achieved 

The technical support has already aided the NRA to increase the uptake of the CCP in Poland. Due to the feedback received through the evaluation study the Ministry of Finance has decided to extend the pilot of the CCP until 2025 and lifted previously imposed cap on participation, which was set at a maximum of 20 entities.

The project has contributed to strengthening the understanding of the CCP within the NRA and has increased the visibility of CCP with large companies. During the CCP pilot phase relations between the NRA and company’s representatives developed.

The above would over the longer-term contribute towards more efficient and effective tax administrations, improved tax collection and a better economic environment due to enhanced tax certainty for large businesses.