The STIR bank account blockade in Poland. Is it possible to fight it?

The blocking of bank accounts under STIR is becoming an increasingly common problem for entrepreneurs. A quick and effective reaction is crucial to avoid serious financial consequences. In this article, we will explain what the STIR account blockade is. We will also focus on its causes and ways to fight it.

What is the STIR system?

STIR system is the Teleinformatic System of the Clearing House in Poland. The abbreviation STIR comes from the Polish name System Teleinformatyczny Izby Rozliczeniowej.

The STIR system is used to fight fiscal fraud. The National Revenue Administration manages it. It enables acquiring and analysing financial transaction data from banks and credit unions. This helps to identify potential irregularities.

STIR Bank Account Blockade – Function and role of the STIR system

The STIR system is used to analyze and detect operations potentially connected with fiscal fraud. It allows the National Revenue Administration to:

• focus on fighting tax crimes,
• protect righteous taxpayers,
• ensure the security of the tax system.

STIR Bank Account Blockade – When can the Tax Office block a bank account under STIR?

The STIR account blockade is used only when it is necessary to counter the use of the financial sector for fiscal fraud. The main goal of this solution is to fight VAT carousel fraud and prevent undue VAT refunds.

The STIR account blockade prevents transfer of funds between entities involved in the VAT carousel fraud. As a result, it is more difficult to continue the criminal activity.

The blockade may also occur when there is a suspicion that a taxpayer is seeking an undue VAT refund. For example, by issuing false invoices.

STIR Bank Account Blockade – When a bank account cannot be blocked under STIR?

The STIR account blockades cannot be applied, among others, in the following cases:

• On the accounts of individuals who do not conduct business activities. For example: individuals employed full-time. This means that funds in these accounts are protected. They cannot be blocked by the National Revenue Administration. It also applies when there is a suspicion of fiscal fraud.
• In the absence of justified concerns. The Head of the National Revenue Administration may only block an account when there is a justified concern that an entity is using the account for fiscal fraud. Risk analysis alone is not sufficient to block the account.
• If the potential tax liability or tax liability of third parties is lower than 10 000 euros.
• If there are procedural mistakes. In such a case, the STIR account blockade may be challenged. This is possible, for example, if the National Revenue Administration did not properly deliver the decision to block. Another example is insufficient justification.

STIR Bank Account Blockade – Mechanism of analysis under the STIR system

The STIR bank account blockade follows the analysis of various criteria, including:

• Economic criteria – analysis of transaction values, unusual money flows, etc.,
• Geographical criteria – connecting transactions to specific regions or locations,
• Subjective criteria – the type of transactions and their compliance with the entity’s business profile,
• Behavioral criteria – analysis of unusual behaviours and transaction patterns,
• Connections – identification of links between different entities and transactions.

As part of the STIR procedure, data on transactions on the accounts of the so-called qualified entities are analyzed. Qualified entities include:

• Individuals conducting business activities,
• Legal entities, e.g., limited liability companies,
• Organizational units without legal personality but with legal capacity. For example: civil partnerships, foundations, etc.

STIR Bank Account Blockade – Types of accounts analysed under the STIR system

The STIR account blockade procedure involves the analysis of specific types of bank accounts:

• Settlement accounts,
• Term deposits,
• Accounts maintained for business purposes in Credit Unions,
• VAT accounts.

STIR Bank Account Blockade – How long can an account be blocked under the STIR?

The STIR account blockade can be applied for a period not exceeding 72 hours. This is called a “short blockade“. It immediately secures funds for the time necessary to conduct preliminary analysis. It is used when collected information suggests the use of financial sector for the purposes of:

• Fiscal fraud,
• Actions aimed at fiscal fraud.

The short blockade takes the form of a request submitted to the relevant entity – a bank or credit union. The request is usually issued by the Head of the National Revenue Administration or the Head of Customs and Tax Office.

STIR Bank Account Blockade – Procedure for extending the STIR blockade

The Tax Ordinance provides for the possibility of extending the STIR bank account blockade. This period cannot exceed 3 months. The extension of the blockade depends on the Head of the National Revenue Administration. It occurs in the form of a decision.

The extension of the blockade may occur when:

• there is a justified concern whether the entity will meet its existing or future tax obligations,
• the amount of the obligation exceeds the equivalent of 10 000 EUR. The value should be converted into PLN according to the average exchange rate of the NBP announced on the last working day of the year preceding the year in which the decision to extend the blockade was issued.

In order to extend the account blockade under the STIR procedure:

• no separate evidentiary proceedings are conducted to the extent as in the enforcement procedure.
• the authority analyzes collected evidence. This includes data from tax audits, tax proceedings, or other verification activities,
• evaluation of the circumstances related to the disputed transactions is necessary. It refers to the existence of concerns about non-performance of tax obligations.

STIR Bank Account Blockade – Legal remedies

Challenging the STIR bank account blockade depends on the type of blockade applied. In the case of:

1. The so-called short blockade – no independent appeal is available,
2. Extension of the blockade – the decision can be challenged through a complaint to:
   • The Head of the National Revenue Administration, if he issued the decision
   • The relevant Director of the Chamber of Tax Administration, when the extension of the blockade resulted from decision of the Head of the Customs and Tax Office.

The deadline for filing a complaint against the decision to extend the blockade under STIR is 7 days. The days are counted from the moment of receiving the decision.

After exhausting the complaint procedure, the blocked entity can appeal to the administrative court. The tax authority submits the case files and responds to the complaint to the court. The deadline for this action is 7 days after receiving the complaint. The administrative court’s deadline for considering the appeal is 30 days.

STIR Bank Account Blockade – Procedure for adjudicating complaints under the STIR bank account blockade

During the procedure of challenging the STIR bank account blockade, the substantive validity of the tax authorities’ findings is not examined. It only verifies if the authority has substantiated the grounds justifying the blockade.

STIR Bank Account Blockade – summary

The STIR account blockade may cause trouble. However, it does not necessarily mean the end of business operations. There are ways to fight it. If you have any doubts regarding this subject, do not hesitate to seek legal support.

If you find this topic interesting and need more information about it, our experts are ready to help you. Feel free to contact us!

FAQ – Frequently Asked Questions about: STIR bank account blockade