Payers transferring receivables abroad obliged to settle the withholding tax will not be able to fail to bear responsibility if the tax was not collected through the taxpayer’s fault, in a situation where money transfers concern affiliated entities within the meaning of Art. 11a par. 1 pt. 4 of  Corporate Income Tax/art. 23m par. 1 pt. 4 Personal Income Tax Act.

The regulations concerning bearing responsibility for uncollected tax (Art. 30 § 5a of the Tax Ordinance) also apply to foreign controlled entities (CFC) and entities from so-called tax havens.

Therefore, payers making payments to entities listed in Article 30 § 5a of the Tax Ordinance should duly examine the status of the recipient of the dues in order to prove that the money transferred does not go to conduit companies.