Cost Trading on the Internet (Art. 271 the Penal Code, Art. 67 of the Fiscal Penal Code) from the series „35 Cybercrimes in Polish Criminal Law”
In today’s world, due to the increasingly widespread access to the internet, new forms of crimes related to dishonest profits have emerged. One of them is cost trading on the internet, which involves illegally acquiring or manipulating information in order to obtain undue financial benefits. Such actions may include selling fictitious costs, tax fraud, or manipulating invoices and other accounting documents. In Polish fiscal criminal law, these issues are regulated, among others, by Articles 271 of the Penal Code and Art. 67 of the Fiscal Penal Code.
What is cost trading on the Internet?
Cost trading on the internet is a form of crime that involves the sale or purchase of fictitious cost documents, invoices, receipts, contracts, or other documents aimed at reducing tax liabilities or obtaining undue financial benefits. This phenomenon is particularly dangerous as it can impact companies’ tax settlements by introducing false data into circulation, which serve as the basis for obtaining VAT refunds or other tax reliefs.
Examples of such actions include:
- Selling fictitious invoices – Entrepreneurs may offer to sell invoices for fictitious transactions, allowing their clients to reduce their tax base or obtain undue VAT refunds.
- Creating virtual costs – Creating costs that did not actually occur by selling fictitious services, which are invoiced and presented as business expense deductions.
- Manipulating accounting documents – As part of these actions, entrepreneurs may manipulate their accounting books to introduce false costs in order to reduce income tax.
Legal Provisions – Articles 271 and 67 of the Fiscal Penal Code
In Polish fiscal criminal law, cost trading is regulated by Articles 271 and 67 of the Fiscal Penal Code. These provisions provide serious consequences for those who decide to engage in such dishonest practices.
- Art. 271 of the Fiscal Penal Code – Forging Documents
According to Article 271 of the Fiscal Penal Code, falsifying accounting documents, such as invoices or other cost documents, in order to obtain undue financial benefits, constitutes a fiscal crime. The penalty for such an act can be imprisonment for up to 5 years. This crime aims to combat all forms of document falsification that could mislead tax authorities and enable the unlawful gain of benefits at the expense of the state budget.
- Art. 67 of the Fiscal Penal Code – Using False Documents
Article 67 of the Fiscal Penal Code penalizes the use of false documents to obtain undue financial benefits, including reducing tax obligations. A person who uses fake invoices or other fictitious cost documents may face imprisonment for up to 5 years or a fine.
Consequences of Cost Trading on the Internet
Those who engage in cost trading on the internet by selling or using false documents must reckon with serious legal consequences. According to the provisions of the Fiscal Penal Code, the consequences may include:
- Imprisonment – For falsifying documents and using them for unlawful purposes, offenders may face imprisonment for up to 5 years.
- Fine – In addition to imprisonment, the perpetrator may be fined, with the amount potentially reaching millions of zlotys depending on the scale of the crime.
- Seizure of Funds and Assets – In the case of serious tax fraud, the court may order the forfeiture of financial assets and property obtained as a result of the crime.
- Civil Liability – In addition to criminal liability, a person using false documents may be required to compensate for the damage caused.
How to Avoid Cost Trading on the Internet?
To avoid engaging in illegal activities related to cost trading on the internet, it is advisable to follow a few basic principles:
- Complying with Tax Regulations – Companies and entrepreneurs are recommended to thoroughly familiarize themselves with the regulations regarding invoicing and cost settlements and regularly check their accounting documents by specialists.
- Purchasing Costs Only from Reliable Providers – If a company decides to cooperate with other entities in the area of cost trading, it should ensure that the supplier of these documents is reliable and operates in accordance with the law.
- Data and Document Protection – It is important to ensure the security of accounting documents and invoices to avoid their unauthorized use.
Summary
Cost trading on the internet is a serious fiscal crime that can lead to severe legal consequences, including imprisonment, fines, and the obligation to compensate for damages. The provisions contained in Articles 271 and 67 of the Fiscal Penal Code serve as a basis for combating document falsification and manipulation to obtain undue financial benefits. It is important to remember that compliance with tax regulations and honesty in business operations are key elements in avoiding such crimes.
Status as of: March 24, 2022
Cyberlaw by Judyta 