{"id":1526,"date":"2021-04-01T12:51:34","date_gmt":"2021-04-01T10:51:34","guid":{"rendered":"http:\/\/i360.trejka05.pl\/?p=1526"},"modified":"2021-06-09T13:51:16","modified_gmt":"2021-06-09T11:51:16","slug":"transcript-of-legal-trivia-on-loyalty-schemes","status":"publish","type":"post","link":"https:\/\/i360.com.pl\/en\/transkrypcja-ciekawostki-prawne-programow-lojalnosciowych\/","title":{"rendered":"Transcript \u2013 Legal aspects of loyalty schemes"},"content":{"rendered":"

KN<\/strong>: On loyalty schemes at night. Once again, we\u2019re joined in the studio by Mr Pawe\u0142 Gali\u0144ski. Good evening. Mr Gali\u0144ski, today we\u2019ll be discussing some interesting legal and tax aspects of loyalty schemes.<\/p>\n\n\n\n

PG<\/strong>: Yes, that is exactly our approach.<\/p>\n\n\n\n

KN<\/strong>: So we\u2019re covering a few separate topics.<\/p>\n\n\n\n

PG<\/strong>: Yes, these will be topics that aren\u2019t directly related to one another. I don\u2019t think some of them are particularly popular, but I do think they\u2019re important and worth considering.<\/p>\n\n\n\n

KN<\/strong>: I\u2019ll start with a more personal question, as it concerns private individuals. We have a situation where a winner has won a trip abroad for two people \u2013 let\u2019s say that\u2019s the case. How is such a prize taxed? We know of one winner, but they\u2019re taking a companion with them.<\/p>\n\n\n\n

PG<\/strong>: Yes, this sort of situation \u2013 it may not be the most popular form of reward, but they do actually happen. A trip abroad this year might not be the most desirable reward given the current circumstances, but generally speaking, rewards of this sort tend to be well received. This is a problem faced by the organiser of the loyalty programme. As we are dealing with a situation where more than one person may be the recipient of this reward \u2013 in the case of the voucher mentioned, it could be two people \u2013 They may use this reward together, so the organiser begins to wonder. If two people, three, or even a larger group, who actually derives the benefit? Because from the point of view of tax law, particularly personal income tax, the key question is really who receives this benefit; in the case of rewards, it is a benefit of a gratuitous nature.<\/p>\n\n\n\n

KN<\/strong>: I\u2019d just like to interject here, because the point of contention is precisely that, although I didn\u2019t take part in this competition, I am nevertheless benefiting from this trip by going on it as an accompanying person.<\/p>\n\n\n\n

PG<\/strong>: Yes, exactly. My position on this matter is that the recipient of this benefit \u2013 that is, the person who receives it \u2013 is solely the individual who actually took part in this loyalty scheme. However, such status cannot be attributed to a partner or any other person \u2013 not even a family member \u2013 whom the winner invites to share the voucher. What is the basis for this? Undoubtedly, this type of reward constitutes a benefit in kind provided by the organiser to the winner, and there is a vast body of material on benefits in kind in both case law and tax practice. I think that if printed out, they would easily take up most of our studio, and might not even all fit, as gratuitous benefits are a vast subject. However, to summarise this topic briefly, one could say that for something to be considered a gratuitous benefit, it must possess the following characteristics. It must undoubtedly be individualised in terms of content; we must have a specific value for this benefit, and this value should be defined in monetary terms; furthermore, we must know exactly who the recipient of this benefit is. It is accepted in both civil and tax law that, for such a benefit to be provided, there must be at least two parties involved. There must be the party who makes this transfer from their own assets \u2013 in our model, this is always the organiser \u2013 and there must be the party who benefits from this benefit, which in this case is our winner. And if we examine this issue with this element in mind, it is clear that this type of legal relationship exists solely between the organiser and the winner; we cannot identify such a relationship between other individuals who may potentially take part in this trip. I will set aside the fact that such individuals may be completely unknown at the stage when the voucher is issued; so, in reality, how would the organiser, as the payer, be expected to fulfil this obligation? It would be entirely fictitious. And there is a rule of interpretation to the effect that we cannot interpret legal provisions in a way that would lead to the reconstruction of absurd norms \u2013 this is known as \u2018interpretation ad absurdum\u2019 \u2013 in other words, we cannot reconstruct the content of a general legal provision in a way that would render it unenforceable for those to whom it is addressed. Another point we must certainly bear in mind is the fact that there is no relationship whatsoever between the organiser and this third party\u2014that is, the so-called \u2018travel companion\u2019, as we\u2019ll call him for short, there is no relationship whatsoever, which\u2014in legal terms\u2014means that the organiser has no legal basis for making a payment to this third party. These parties are not bound by any legal relationship; consequently, we cannot impose any tax consequences on the organiser. It is also very important to note that tax legislation stipulates that the obligations of a tax payer may only be fulfilled by the entity that makes a payment to the recipient of that payment. In this context, the relationship between the provider and the recipient of the benefit can only be established along the line of organiser\u2013participant in the programme. Consequently, there is no alternative: only the winner of this prize in the form of a voucher can be taxed, regardless of how many people accompany them on the trip.<\/p>\n\n\n\n

KN<\/strong>: So it\u2019s good to be a support person in a situation like this.<\/p>\n\n\n\n

PG<\/strong>: Yes, that\u2019s true.<\/p>\n\n\n\n

KN<\/strong>: Mr Lawyer, it\u2019s usually a purchase that leads us to a reward. We can buy a product that automatically entitles us to a reward, or one that allows us to earn points which lead us to that reward. But there are also other ways to collect points and win prizes. What are these methods?<\/p>\n\n\n\n

PG<\/strong>: Yes, you are absolutely right. The classic model involves linking a purchase to a reward or a bonus. It is, as it were, the basic, fundamental model. However, as I believe we discussed here during our previous meeting, rewards under a bonus sales scheme may or may not be a direct consequence of the purchase itself, because our legislation states that these are rewards linked to bonus sales.<\/p>\n\n\n\n

PG<\/strong>: According to the latest practice of the tax authorities, this means that prizes of this kind may also be awarded in return for so-called non-commercial activities carried out by individual participants. What do we mean by this term? It is a very broad concept and, in reality, has no limits; the only boundaries are set by the ingenuity and innovation of our entrepreneurs. However, to give our viewers some idea of what this entails, we can say that these are most often activities related to online participation in loyalty schemes. These include, for example, taking part in webinars held online, completing various knowledge tests, and participating electronically in consumer group meetings. The range of solutions is, in fact, unlimited, and what is important in our discussion is that the tax authorities have recently begun to agree with us that if we add these non-commercial elements to a traditional programme based on bonus sales, such a modification will in no way affect the tax classification of the scheme. The scheme will still be classified as a sales-based incentive scheme. This is very important. When running this programme, we do not need, to put it simply, to distinguish between the points earned by a participant. This means that a participant, for example, earns points for purchasing goods and, at the same time, earns points for, say, completing knowledge tests on the products we are promoting. And if they log into their dashboard and, for example, check how many points they have earned, these points are in no way divided into points derived from purchasing activities and points derived from non-commercial activities. To put it simply, they all go into the same pot. The consequence of this is that all rewards a participant receives in exchange for the points they collect are classified as rewards derived from launch sales. As a result, we can take advantage of tax preferences: firstly, all these rewards can be taxed at a flat rate of 10 per cent income tax, and, in addition, we can still benefit from a tax exemption up to 2,000 zlotys. It would be an oversimplification to conclude the topic here. To achieve the effect I mentioned \u2013 namely, the uniform treatment of this type of scheme \u2013 when designing its framework, we must bear in mind that it must, above all, include a mechanism for rewarding the purchase of specific goods or services; however, the elements discussed are not the only ones that are relevant to this issue. In order to benefit from the tax incentives I mentioned earlier, a programme of this kind must, first and foremost, be aimed at increasing the organiser\u2019s sales turnover, and, in addition, it must also include elements of competition, meaning that individual participants must compete against one another. If these elements were absent, we would face a serious problem in classifying such a programme. It is also crucial that the purpose of the programme is to increase the turnover generated by our client, that is, in this case, by the sponsor. As we discussed, this interpretation of tax law, recently adopted by the Director of the National Tax Information Service, is highly significant for business practice, as it allows, first and foremost, promotional activities to be classified in a uniform manner and, as a launch sale, to benefit from a tax exemption up to 2,000 zlotys, as well as to avoid the need to submit a PIT 11 tax return.<\/p>\n\n\n\n

KN<\/strong>: Mr Lawyer, introducing a quantitative programme involves a lengthy decision-making process, negotiations and a significant financial outlay for the sponsor. Are there any ways, any possibility of a tax relief for the sponsor?<\/p>\n\n\n\n

PG<\/strong>: This is also an important point you have raised, and from a business owner\u2019s perspective it is a matter of no small significance, because, as you mentioned, the loyalty schemes organised by most large marketing agencies cover customers throughout the country, and are therefore organised on a large scale. From my experience, I know that an increasing number of marketing agencies are even organising one-off loyalty programmes aimed at entire regions of Europe. In other words, loyalty programmes run from Poland actually cover the Czech Republic, Slovakia and sometimes even countries further south in Europe; consequently, launching such a programme undoubtedly entails a significant financial burden. A natural consequence of the sponsor bearing the organiser\u2019s expenses is that these expenses consist of remuneration for the services provided by the organiser and the cost of the rewards awarded under the programme. A natural consequence of this is that a sponsor of this kind wishes to be able to classify the entirety of this expenditure as \u2018tax-deductible costs\u2019, which directly translates into a reduction in the tax paid by the sponsor in Poland. The first thing we must bear in mind when considering whether a sponsor can treat expenditure on a loyalty programme as a tax-deductible expense is the so-called basic conditions set out in the Income Tax Acts, which determine whether this expenditure can be classified as a tax-deductible expense; and as far as these conditions are concerned, the primary one is that the expenditure must be incurred personally by the taxpayer. The second element is that this expenditure must be strictly related to the taxpayer\u2019s business activities. The purpose for which this expenditure is incurred is also very important. It is generally assumed that this expense must be incurred for the purpose of generating income or securing, or maintaining, a source of income; whilst this does not follow directly from the legislation, it is supported by a wealth of case law. Such an expense must be properly documented and, furthermore, must not feature in the so-called \u2018negative list\u2019 of tax-deductible costs; that is to say, it must not be excluded from tax-deductible costs by the legislature.<\/p>\n\n\n\n

KN<\/strong>: In this case, can we consider that these conditions have been met?<\/p>\n\n\n\n

PG<\/strong>: W mojej ocenie tak, ale nie ma gwarancji, \u017ce zawsze urz\u0105d skarbowy podzieli nasz\u0105, tudzie\u017c moj\u0105 opini\u0119. Dlaczego ja uwa\u017cam, \u017ce w takim przypadku te warunki s\u0105 spe\u0142nione. Przede wszystkim wydatki na organizacj\u0119 programu lojalno\u015bciowego bez w\u0105tpienia ponosi sponsor, wi\u0119c ten warunek jest spe\u0142niony. Wydatek ponoszony przez sponsora ma charakter ostateczny tzn. to co zap\u0142aci za organizacj\u0119 programu i za wydanie nagr\u00f3d nie zostaje mu w \u017caden spos\u00f3b zwr\u00f3cone, czyli tak naprawd\u0119 obci\u0105\u017ca jego maj\u0105tek. Aby osi\u0105gn\u0105\u0107 ten efekt, o kt\u00f3rym powiedzia\u0142em, czyli jednolite traktowanie tego typu programu, konstruuj\u0105c jego za\u0142o\u017cenia musimy pami\u0119ta\u0107 o tym, \u017ce musi on przede wszystkim zawiera\u0107 mechanizm premiowania za dokonywanie zakup\u00f3w konkretnych towar\u00f3w albo us\u0142ug, natomiast opr\u00f3cz tego cel, dlaczego sponsor decyduje si\u0119 na zlecenie organizacji tego programu lojalno\u015bciowego nakierowany jest na zwi\u0119kszenie wolumenu obrot\u00f3w swojego przedsi\u0119biorstwa, wi\u0119c niew\u0105tpliwie sponsor decyduje si\u0119 na to po to, aby zwi\u0119kszy\u0107 przychody kierowanego przez przez siebie przedsi\u0119biorstwa. Je\u017celi jest prawid\u0142owo skonstruowana umowa, no to mamy te\u017c ten podstawowy element zwi\u0105zany z udokumentowaniem tej us\u0142ugi, wi\u0119c to s\u0105 takie, a opr\u00f3cz tego ten wydatek niew\u0105tpliwie nie jest uznawany przez ustawodawc\u0119 za wy\u0142\u0105czony z koszt\u00f3w uzyskania przychod\u00f3w, wi\u0119c tak naprawd\u0119 te elementy mamy wype\u0142nione. Diabe\u0142 tkwi w szczeg\u00f3\u0142ach, wobec czego ka\u017cdy rozs\u0105dny przedsi\u0119biorca, kt\u00f3ry jest zainteresowany zleceniem organizacji programu lojalno\u015bciowego rozmawiaj\u0105c z potencjalnymi organizatorami tego programu powinien w mojej ocenie, w pierwszej kolejno\u015bci bardzo szczeg\u00f3\u0142owo przeanalizowa\u0107 jak\u0105 dokumentacj\u0119 proponuje ten organizator, zwi\u0105zan\u0105 z realizacj\u0105 tego programu lojalno\u015bciowego. Podstawowym elementem tego procesu organizacji jest tak naprawd\u0119 dobrze skonstruowana umowa na prowadzenie programu lojalno\u015bciowego i bez tego nie mo\u017cemy nie mo\u017cemy si\u0119 oby\u0107. Warto wiedzie\u0107, co mo\u017cemy rozumie\u0107 przez nale\u017cyte udokumentowanie faktu, \u017ce program lojalno\u015bciowy zosta\u0142 rzeczywi\u015bcie zrealizowany przez sponsora na rzecz organizatora. Podstawowy element, od kt\u00f3rego nigdy nie mo\u017cemy uciec, to jest umowa i faktury, natomiast z uwagi na to, \u017ce program lojalno\u015bciowy jest us\u0142ug\u0105 o charakterze niematerialnym konsekwencj\u0105 tego jest to, \u017ce organy skarbowe maj\u0105 dosy\u0107 wy\u015brubowane oczekiwania, je\u017celi chodzi o udowodnienie przez podatnika, \u017ce faktycznie dan\u0105 us\u0142ug\u0119 naby\u0142. W ostatnich latach mo\u017cemy obserwowa\u0107 podnoszenie przez organy skarbowe oczekiwa\u0144 co do tego jakie dowody podatnik musi przedstawi\u0107 w toku ewentualnej kontroli lub post\u0119powania podatkowego, \u017ceby wykaza\u0107, \u017ce dana us\u0142uga na jego rzecz zosta\u0142a faktycznie wykonana. I tutaj wchodzimy na p\u0142aszczyzn\u0119 tak\u0105 bardzo praktyczn\u0105, czyli tak naprawd\u0119 tego, czego organ skarbowy oczekuje od podatnika, kiedy przychodzi do niego i si\u0119 pyta „prosz\u0119 nam wyt\u0142umaczy\u0107, dlaczego wyda\u0142 Pan kwot\u0119 X na program lojalno\u015bciowy prowadzony na terenie ca\u0142ego kraju i jak Pan uzasadni to, \u017ce ten program faktycznie zosta\u0142 na Pana rzecz przez t\u0105 agencj\u0119 marketingow\u0105 zrealizowany”. Je\u017celi by\u015bmy pokazali umow\u0119, nawet najbardziej obszern\u0105, a do tego 12 faktur, bo program by\u0142 realizowany przez rok, wi\u0119c fakturowany by\u0142 co miesi\u0105c, to obawiam si\u0119, \u017ce tego typu dokumentacja nie spotka\u0142aby si\u0119 z pe\u0142nym uznaniem organu skarbowego, poniewa\u017c m\u00f3g\u0142by on chcie\u0107 kwestionowa\u0107, \u017ce te us\u0142ugi faktycznie zosta\u0142y na Pa\u0144stwa rzecz wykonane. Wobec czego jakie dokumenty trzeba posiada\u0107. Przede wszystkim, trzeba dokumentowa\u0107 ka\u017cdy aspekt wdra\u017cania programu lojalno\u015bciowego. Nale\u017cy dokumentowa\u0107 etap negocjowania umowy, tre\u015b\u0107 umowy, po tym jak ju\u017c umowa zostanie podpisana, to proces wdra\u017cania programu lojalno\u015bciowego powinien by\u0107 udokumentowany tak\u017ce na etapie opracowywania samej jego koncepcji. Potem musimy mie\u0107 dowody w postaci pracy nad stworzeniem regulaminu. Warto mie\u0107 tak\u017ce dowody potwierdzaj\u0105ce wydawanie nagr\u00f3d na rzecz poszczeg\u00f3lnych uczestnik\u00f3w. Dokumenty, kt\u00f3re s\u0105 generowane w zwi\u0105zku z wydawaniem tych nagr\u00f3d. Z mojego do\u015bwiadczenia zawodowego wynika, \u017ce czasami sponsorzy wymagaj\u0105 od organizatora nawet tworzenia foto relacji potwierdzaj\u0105cej, \u017ce te nagrody zosta\u0142y wydane przyk\u0142adowo, je\u017celi jest to nagroda o charakterze takim bardziej spektakularnym, czyli samoch\u00f3d no to tam ju\u017c tradycyjnie s\u0105 zapraszani fotoreporterzy, albo ekipa nagraniowe i z tego tworzy si\u0119 materia\u0142 wideo. Zawsze naszym klientom doradzamy jakby posiadanie jak najbardziej bogatego spektrum dowodowego, poniewa\u017c u\u0142atwia nam to potem, nam – sponsorowi rozmow\u0119 z urz\u0119dem skarbowym i wydatnie minimalizuje ryzyko, \u017ce urz\u0105d stwierdzi, \u017ce te wydatki nie mog\u0105 by\u0107 naszymi kosztami uzyskania przychodu, co mia\u0142oby dla nas niekorzystne niekorzystne konsekwencje podatkowe.<\/p>\n\n\n\n

KN<\/strong>: And we all want to be on good terms with the tax office.<\/p>\n\n\n\n

PG<\/strong>: Of course.<\/p>\n\n\n\n

KN<\/strong>: Mr Lawyer, thank you very much for those interesting facts about the world of taxation and loyalty schemes. We\u2019ll say goodbye for today and hope to see you again.<\/p>\n\n\n\n

PG<\/strong>: Thank you very much for the invitation; I\u2019d also like to thank you all for your attention, and I hope we\u2019ll meet again in future series of the programme.<\/p>","protected":false},"excerpt":{"rendered":"

KN: O programach lojalno\u015bciowych noc\u0105. Po raz kolejny spotykamy si\u0119 w studio z mecenasem Paw\u0142em Gali\u0144skim. Dobry wiecz\u00f3r. Pani mecenasie dzisiaj porozmawiamy o ciekawostkach prawnych i podatkowych w aspekcie program\u00f3w lojalno\u015bciowych. PG: Tak, dok\u0142adnie taka jest nasza koncepcja. KN: Czyli poruszamy kilka osobnych temat\u00f3w. PG: Tak, b\u0119d\u0105 to tematy nie powi\u0105zane ze sob\u0105 bezpo\u015brednio. Wydaje…<\/p>","protected":false},"author":2,"featured_media":1525,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[67],"tags":[],"class_list":["post-1526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-o-programach-lojalnosciowych-noca"],"taxonomy_info":{"category":[{"value":67,"label":"O programach lojalno\u015bciowych noc\u0105"}]},"featured_image_src_large":["https:\/\/i360.com.pl\/wp-content\/uploads\/2021\/04\/16_Mec.Galinski_Ciekawostki_PLANSZA-1024x576.jpg",1024,576,true],"author_info":{"display_name":"Tomasz Makaruk","author_link":"https:\/\/i360.com.pl\/en\/author\/autor\/"},"comment_info":0,"category_info":[{"term_id":67,"name":"O programach lojalno\u015bciowych noc\u0105","slug":"o-programach-lojalnosciowych-noca","term_group":0,"term_taxonomy_id":67,"taxonomy":"category","description":"","parent":0,"count":26,"filter":"raw","term_order":"0","cat_ID":67,"category_count":26,"category_description":"","cat_name":"O programach lojalno\u015bciowych noc\u0105","category_nicename":"o-programach-lojalnosciowych-noca","category_parent":0}],"tag_info":false,"_links":{"self":[{"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/posts\/1526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/comments?post=1526"}],"version-history":[{"count":0,"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/posts\/1526\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/media\/1525"}],"wp:attachment":[{"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/media?parent=1526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/categories?post=1526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/i360.com.pl\/en\/wp-json\/wp\/v2\/tags?post=1526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}