Unusual vessel and abolition relief

A seafarer approached us, who works on a Standby Safety Vessel. This type of vessel can raise interpretative doubts with the tax office regarding its operation in international transport.

And in this case, that’s exactly what happened.

The client presented the issue to us rather late in the annual tax filing process – at the end of April 2024.

After a thorough and swift analysis of the documents, we concluded that an annual tax return must be filed. However, this would require an application of abolition relief for the year 2024.

Given that the type of vessel was a point of contention for the tax office, we informed the client that additional documents might be necessary for the application.

Thanks to detailed information from the client regarding his employment model, we identified an alternative basis for him to qualify for abolition relief. Supplementing the application with our arguments allowed for a favorable decision for the client, despite the interpretative discrepancies regarding the type of vessel on which he works.

Thanks to our quick response, the client:

• successfully settled his tax obligations with the tax office,
• received a positive decision from the tax office,
• was able to take advantage of the abolition relief,
• and, as a result, saved some money.

Resolving tax ambiguities for our clients – sailors – is our specialty.

Compiled by:

trainee advocate Michał Wieczorek