Running a business involves numerous tax, accounting, and formal obligations. In day-to-day operations, situations may arise where tax regulations are unintentionally breached—for example, an error in VAT settlement, failure to submit a declaration, or missing a payment deadline. Even when the entrepreneur’s intentions are entirely honest, the legal consequences can be serious—potentially leading to fiscal criminal liability.
In such cases, it is worth knowing that there is a mechanism that allows for quicker resolution of the matter without the need for a court hearing—voluntary submission to liability (commonly referred to by its Polish abbreviation, DPO).
What Is Voluntary Submission to Liability?
Voluntary submission to liability (DPO) is a legal instrument provided for in the Polish Fiscal Penal Code (Articles 142 and following). It enables a person who has committed a fiscal offence or misdemeanour to conclude proceedings without the public prosecutor filing an indictment, provided certain conditions are met.
In practice, this means that the offender—such as a business owner or an individual responsible for tax matters within a company — can personally submit an application to the authority conducting the proceedings (usually the customs and tax office) and propose to accept liability and a penalty, such as a fine.
When Can DPO Be Used?
- Only prior to the submission of an indictment to the court.
- The guilt of the offender and the circumstances of the offence must be clear and undisputed.
- There must be no disqualifying factors, such as a prior conviction for a fiscal offence or refusal to pay the outstanding public dues.
What Does the Procedure Involve?
- Submitting an application – this must be done personally by the offender (not through a representative or solicitor), either in writing or verbally at the relevant office.
- The application must be accompanied by proof that the conditions of DPO have been met—for example, confirmation of payment of tax arrears, interest, and the proposed fine.
- The authority assesses the application and may enter into negotiations regarding the level of the fine.
- If the application is accepted, the authority refers the case to the court with a request to approve the DPO.
- The court approves the DPO without a hearing, bringing the matter to a close.
Why Consider Voluntary Submission to Liability?
- Faster resolution – avoids lengthy and complex court proceedings.
- Reduced reputational risk – the case is not heard in open court.
- Typically a more lenient penalty – compared to sentencing following a full trial.
- An opportunity to influence the fine – possibility of negotiation with the authority.
- Saves time and legal costs.
What Should You Be Aware Of?
- The application can only be submitted to a financial authority (e.g. the National Revenue Administration). If the case is being handled by the police or public prosecutor, it must first be transferred to the relevant tax authority.
- If the application is submitted after an indictment has been filed, it will be ineffective—so timely action is critical.
- Even if proceedings have only just begun, it is highly advisable to consult a solicitor who can assess whether DPO is possible and beneficial in your specific situation.
Can a Business Owner Act Through a Representative?
While a legal representative (e.g. attorney-at-law) may assist with negotiations, the application for voluntary submission to liability must be signed personally by the offender. The only exception applies to minors, in which case the application must be submitted by a legal guardian.
Voluntary submission to liability is a practical solution for entrepreneurs and business owners who wish to resolve a fiscal criminal matter efficiently, without a court hearing, and with minimal consequences. However, swift action and proper preparation of the application are essential—therefore, we recommend seeking support from a qualified legal professional.
Have questions? Need assistance with a fiscal criminal matter? Contact our firm—we’ll guide you through the process step by step.