The Impact of Changes in the Interpretation of Normative Acts on the Stimulating Function of the Tax on the Example of The Polish Real Estate Tax

Abstract

The article presents the issue of variability in the approach to the interpretation of tax law by courts. The author’s goal is to determine how changes in the approach to the interpretation of regulations may affect the implementation of the tax stimulating function. The analysis was carried out on the example of Polish regulations governing real estate tax, in particular providing for two types of tax exemptions: for harbour infrastructure and for railway infrastructure. Since in Poland the real estate tax paid on infrastructure facilities is a significant burden for entrepreneurs, tax exemptions have a large stimulating function by encouraging taxpayers to build and maintain certain types of assets (e.g., harbours, railway lines). The author presents how the approach taken by the courts to the interpretation of the exemption for harbour infrastructure resulted in the exclusion of river harbours from the scope of the exemption. At the same time, contrary to this approach, the subsequent line of interpretation of the courts regarding the railway exemption enabled taxpayers to exempt railway sidings from tax. Despite this change, in the case of river harbours, the courts are still sticking to the old approach, as a result of which the stimulating function of the tax exemption for river harbours does not work.