The taxpayer versus the tax office - how did the dispute begin?
In April 2024, a taxpayer filed a corrected PIT-37 return for the 2022 tax year. The correction was based on claiming the rehabilitation relief, under which the man sought a refund of around PLN 6,000 in overpaid personal income tax. The case appeared routine - correcting a tax return is one of the most common procedures handled by tax offices in Poland.
Reality turned out to be far more complicated. Over the following months, the Polish Tax Office (urząd skarbowy) analysed the documentation and repeatedly requested additional information, both from the taxpayer and from external institutions - including the National Health Fund (NFZ) and the State Fund for the Rehabilitation of Disabled Persons (PFRON). The deadlines for concluding the proceedings were extended several times, and the case dragged on with no visible progress.
More than a year after the correction was filed - in autumn 2025 - the proceedings had still not been closed. The taxpayer, discouraged by the lack of a decision, decided to use the legal remedies available to him under the Act on Proceedings before Administrative Courts and filed a complaint about excessive length of proceedings with the Voivodeship Administrative Court (WSA) in Warsaw. Shortly after the complaint was lodged, the office finally issued a decision - but refused to refund the overpayment.
What is excessive length of tax proceedings and when can it be challenged?
Excessive length of proceedings is a situation in which a public administration authority - in this case the tax office - handles a case for longer than is necessary to resolve it. Polish tax law sets specific deadlines for handling cases, laid down in the Tax Ordinance. As a rule, proceedings should be concluded without undue delay, and in cases requiring clarification proceedings - no later than within one month, or within two months in particularly complex cases.
A taxpayer who believes that the tax authority is acting too slowly has the right to take the following steps:
- Complaint about delay (ponaglenie) - a request addressed to a higher-level authority (e.g. the director of the tax administration chamber) concerning inaction or excessive length of proceedings by the first-instance authority.
- Complaint to the WSA - after exhausting the route of the complaint about delay, the taxpayer may file a complaint about excessive length of proceedings with the voivodeship administrative court.
- Claim for compensation - as part of the complaint, the taxpayer may seek an award of a sum of money of up to half of ten times the average salary.
- Claim for damages - in separate civil proceedings, the taxpayer may seek damages for loss caused by the protracted handling of the case.
It is worth stressing that a court finding excessive length does not automatically mean financial compensation will be awarded. The court assesses all the circumstances, including the nature of the breach, the duration of the delay and the value of the subject matter of the dispute.
What did the Voivodeship Administrative Court and the Supreme Administrative Court rule?
The WSA in Warsaw's decision
The Voivodeship Administrative Court in Warsaw sided with the taxpayer on the key issue - it confirmed that the tax office had been guilty of excessive length of proceedings. The court pointed to unjustified gaps between successive procedural steps and the overly slow pace at which the case was handled. In the WSA's view, the problem lay in the improper organisation of the office's work, not in any particular complexity of the tax case.
At the same time, the WSA held that there had been no gross violation of the law - that is, a situation in which the authority's conduct would be obviously and flagrantly contrary to the applicable rules. This distinction proved decisive for the further course of the case, as it affected the assessment of whether the claim for compensation was justified.
Refusal to award PLN 20,000 compensation
The taxpayer sought PLN 20,000 in compensation for the protracted handling of the proceedings. However, the WSA refused to award it, relying on two significant arguments. First, the amount claimed was disproportionate to the value of the subject matter of the dispute, which was around PLN 6,000. Second, the court noted that if the taxpayer ultimately wins the case concerning the rehabilitation relief in separate proceedings, he will be entitled to interest on the overpayment - which is a form of compensation for the tax authority's delay.
The Supreme Administrative Court judgment of 1 July 2025
The taxpayer did not accept the ruling and lodged a cassation appeal with the Supreme Administrative Court (NSA). He argued that the office had grossly violated the law and sought the full amount of compensation. In its judgment of 1 July 2025, the NSA dismissed the cassation appeal, upholding in full the position of the court of first instance. This means that the WSA judgment became final.
In practice, the taxpayer obtained only a formal, judicial confirmation of excessive length on the part of the tax authority. The judgment did not alter the tax decision refusing the refund of the overpayment, nor did it result in the payment of any financial compensation. The man therefore won against the tax office on procedural grounds, but saw no real money.
What conclusions can taxpayers draw from this judgment?
The case described is an excellent illustration of the problems Polish taxpayers face in dealing with tax authorities. Although the law provides tools to combat the tax authority's sluggishness, their effectiveness can be limited. Here are the most important conclusions worth remembering:
A finding of excessive length is not the same as compensation. Administrative courts may confirm that an office acted too slowly, yet refuse to award a sum of money. The decision on compensation depends on many factors - including whether the breach was gross, and whether the amount claimed is proportionate to the value of the dispute.
Interest on an overpayment may partly compensate for the delay. If it ultimately turns out that the taxpayer is entitled to the overpayment, the tax office will be obliged to pay it together with interest. This is an important element to bear in mind when planning a litigation strategy.
Reaction time matters. The sooner a taxpayer files a complaint about delay and, where appropriate, a complaint to the court, the greater the chance of speeding up the proceedings. It is worth acting proactively and not waiting passively for the tax authority's decision.
Professional legal assistance is crucial. Cases concerning excessive length of tax proceedings require the precise formulation of allegations, the right choice of arguments and knowledge of current case law. Handling such a dispute yourself, although possible, significantly reduces the chances of a favourable outcome - especially as regards financial compensation.
Do you need help in a dispute with the tax office?
Cases concerning tax overpayments, rehabilitation reliefs or excessive length of tax proceedings require specialist knowledge and experience. As the NSA judgment described shows, even winning against the tax authority does not always mean real money in your account - which is why a well-thought-out legal strategy from the very beginning is so important.
If your tax case has been dragging on for months, the tax office repeatedly extends deadlines or has issued an unfavourable decision - do not wait. Contact our firm for a professional assessment of your situation and to find out what legal steps you can take. We offer comprehensive assistance in disputes with tax authorities - from complaints about delay, through complaints to administrative courts, to representation before the Supreme Administrative Court.
Book a consultation - together we will find the best solution for your case.
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