Comparison of Compulsory Liability Insurance of Tax Advisors in Poland to the Czech Counterpart
| 04 lug 2023
INFORMAZIONI SU QUESTO ARTICOLO
Pubblicato online: 04 lug 2023
Pagine: 163 - 179
DOI: https://doi.org/10.2478/ceej-2023-0010
Parole chiave
© 2023 Marcel Myśliński, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
Tariff of insurance rates in CZK
| 1,000,000 (none) | 2,900 | 2,900 | 2,900 | 2,900 | 2,900 |
| 2,000,000 (none) | 8,470 | 10,430 | 15,260 | 19,390 | 26,140 |
| 3,000,000 (none) | 9,810 | 12,080 | 17,680 | 23,300 | 28,610 |
| 5,000,000 (none) | 14,600 | 17,970 | 24,130 | 30,600 | 37,460 |
| 10,000,000 (none) | 21,050 | 25,960 | 32,240 | 40,560 | 48,890 |
| 20,000,000 (10%, but min. 10,000 CZK, max. 100,000 CZK) | 33,250 | 39,670 | 44,055 | 54,350 | 62,280 |
| 20,000,000 (10%, but min. 5,000 CZK, max. 50,000 CZK) | 39,900 | 47,610 | 52,860 | 65,430 | 74,700 |
| 30,000,000 (10%, but min. 10,000 CZK, max. 100,000 CZK) | 51,890 | 57,700 | 63,650 | 71,320 | 79,950 |
| 30,000,000 (10%, but min. 5,000 CZK, max. 50,000 CZK) | 60,680 | 65,200 | 70,230 | 77,100 | 85,620 |
| 40,000,000 (10%, but min. 15,000 CZK, max. 150,000 CZK) | None | 70,630 | 73,100 | 81,780 | 91,555 |
| 40,000,000 (10%, but min. 5,000 CZK, max. 50,000 CZK) | None | 77,650 | 80,990 | 89,230 | 98,560 |
| 50,000,000 (10%, but min. 15,000 CZK, max. 50,000 CZK) | None | 93,150 | 98,760 | 106,140 | 117,560 |
| 5,000,0000 (10%, but min. 5,000 CZK, max. 50,000 CZK) | None | 102,660 | 112,000 | 119,650 | 128,020 |
| 70,000,000 (10%, but min. 15 000 CZK, max. 150,000 CZK) | None | 117,690 | 122,710 | 132,020 | 146,980 |
| 70,000,000 (10%, but min. 5 000 CZK, max. 50,000 CZK) | None | 128,470 | 134,850 | 145,350 | 159,990 |
| 100,000,000 (10%, but min. 15,000 CZK, max. 150,000 CZK) | None | 145,960 | 150,540 | 160,210 | 174,050 |
| 100,000,000 (10%, but min. 5,000 CZK, max. 50,000 CZK) | None | 156,620 | 161,250 | 173,290 | 188,880 |
Insurance contracts taken out by tax advisors
| Compulsory insurance | 4,157 | 3,976 | 4,018 | 3,618 |
| Additional insurance | 879 | 952 | 1,089 | 1,341 |
| Surplus insurance | 269 | 301 | 243 | 211 |
| Subsidiary insurance | 865 | 909 | 1,008 | 1,079 |
| Criminal-fiscal insurance | 1,243 | 1,206 | 1,256 | 1,396 |
| Total of voluntary insurance | 3,256 | 3,368 | 3,596 | 4,027 |
| Share of voluntary insurance in total | 43.92% | 45.86% | 47.23% | 52.67% |
Sums guaranteed from 11 March 1997 to 2 July 2002
| 5,000 PLN | 0–50,000 PLN |
| 10,000 PLN | 50,001–100,000 PLN |
| 15,000 PLN | 100,001–150,000 PLN |
| 20,000 PLN | 150,001–200,000 PLN |
| 25,000 PLN | 200,001–250,000 PLN |
| 30,000 PLN | 250,001–300,000 PLN |
| 35,000 PLN | > 300,000 PLN |
Comparison of subject-matter
| performance by the insured employee | Yes |
| tax advice or representation of the client | Yes |
| service of social and health insurance | Yes |
| accounting activities, which are provided together with tax advisory services | Yes |
| advising on company transformation and liquidation | Yes |
| issuing of opinions | Yes |
| conducting foreign litigation | Yes |
| representations before courts | Yes |
| checks on the client’s legal status as regards accounts | Yes |
| imposing sanctions on the customer | Yes |
| further damage caused by the initial damage | Yes |
| incorrect application of the rules | Yes |
| miscalculations | Yes |
| failure to comply with the time limits set by law, court or authorities | Yes |
| carrying out free trade in services of an administrative and organisational nature that are performed jointly with tax consultancy services | Not |
| violation of personal, legal and professional secrecy with an additional limit of up to 1,000,000 CZK | Yes (limit as for others up to 10,000 EUR) |
| a defect in the services provided, relating to non-compliance with international accounting standards (IAS, IFRS, SKIIFRIC, IASB, and ISA). | Yes |
| the tax advisor’s activities as an employee towards his employer | Not |
| fraud perpetrated by an employee, unless the insured was acting in concert with the employee, up to a limit of 100,000 CZK for basic insurance and up to a maximum of 5,000,000 CZK for extended packages. | Yes |
| causing injury to a person (compensation, reimbursement of funeral expenses, payment for lost potential benefits, etc.) | Yes |
| destruction, loss of or damage to property | Yes |
| causing the death of an animal or maiming it (payment for the lost potential benefit that the animal could have brought, reimbursement of medical expenses) | Yes |
| causing damage to health - incurring paid medical expenses for the injured person | Yes |
| destruction of the property in which the tax advisory services are provided, insofar as there is an obligation to repair it (e.g. a lease agreement); this does not apply to property which belongs to the insured person | Only if it is the client’s property |
| a defect in the service provided | Yes |
| the occurrence of the costs of the indemnity proceedings (if they were necessary to establish the insured’s obligation to pay the indemnity or the amount thereof), defence in criminal proceedings, and legal representation. | Yes |
| carrying out financial audits, financial audits | Yes |
| accounting activities that are provided without tax advice | Yes |
| preparation of financial expertise and business advice | Yes |
| destruction or loss of items entrusted by the customer, e.g. theft (the limits for the loss of cash are 10,000 CZK and for the loss and destruction of other items 1,000,000 CZK) | Yes |
| Improper performance of expert activities | Yes |
Guarantee sum of compulsory liability insurance for tax advisors
| 2002 | 10,000 | 3.5496 | 35,496 |
| 2003 | 10,000 | 4.0095 | 40,095 |
| 2004 | 10,000 | 4.7089 | 47,089 |
| 2005 | 10,000 | 4.0778 | 40,778 |
| 2006 | 10,000 | 3.8610 | 38,610 |
| 2007 | 10,000 | 3.8279 | 38,279 |
| 2008 | 10,000 | 3.5975 | 35,975 |
| 2009 | 10,000 | 4.1721 | 41,721 |
| 2010 | 10,000 | 4.0924 | 40,924 |
| 2011 | 10,000 | 3.9622 | 39,622 |
| 2012 | 10,000 | 4.4640 | 44,640 |
| 2013 | 10,000 | 4.0671 | 40,671 |
| 2014 | 10,000 | 4.1631 | 41,631 |
| 2015 | 10,000 | 4.3078 | 43,078 |
| 2016 | 10,000 | 4.2935 | 42,935 |
| 2017 | 10,000 | 4.4157 | 44,157 |
| 2018 | 10,000 | 4.1701 | 41,701 |
| 2019 | 10,000 | 4.3016 | 43,016 |
| 2020 | 10,000 | 4.2571 | 42,571 |
| 2021 | 10,000 | 4.5485 | 45,485 |
| 2022 | 10,000 | 4.5889 | 45,889 |
| 2023 | 10,000 | 4.6784 | 46,784 |
Subject-matter coverage of compulsory liability insurance based on Kooperativa T&C, Kooperativa Professional Services T&C and ZPP P-600/14
| Article II(1.5)(a) | performance by the insured employee |
| Article II(1.5)(b) | tax advice or representation of the client |
| Article II(1.5)(c) | service of social and health insurance |
| Article II(1.5)(d) | accounting activities, which are provided together with tax advisory services |
| Article II(1.5)(e) | advising on company transformation and liquidation |
| Article II(1.5)(f) | issuing of opinions |
| Article II(1.5)(g) | conducting foreign litigation |
| Article II(1.5)(h) | representations before courts |
| Article II(1.5)(i) | checks on the client’s legal status as regards accounts |
| Article II(1.5)(j) | imposing sanctions on the customer |
| Article II(1.5)(k) | further damage caused by the initial damage |
| Article II(1.5)(l) | incorrect application of the rules |
| Article II(1.5)(m) | miscalculations |
| Article II(1.5)(n) | failure to comply with the time limits set by law, court or authorities |
| Article II(1.5)(o) | carrying out free trade in services of an administrative and organisational nature that are performed with tax consultancy services |
| Article II(1.6) | violation of personal, legal and professional secrecy with an additional limit of up to 1,000,000 CZK |
| Article II(1.7) | a defect in the services provided, relating to non-compliance with international accounting standards |
| Article II(1.9) | the tax advisor’s activities as an employee towards his employer |
| Article II(1.11) | fraud perpetrated by an employee, unless the insured was acting in concert with the employee, up to a limit of 100,000 CZK for basic insurance and up to a maximum of 5,000,000 CZK for extended packages. |
| Article 1(2) a–c | causing injury to a person (compensation, reimbursement of funeral expenses, payment for lost potential benefits, etc.) |
| Article 1(3)(a–b) | destruction, loss of or damage to property |
| Article 1(4)(a–b) | causing the death of an animal or maiming it (payment for the lost potential benefit that the animal could have brought, reimbursement of medical expenses) |
| Article 1(5)(a–b) | causing damage to health - incurring paid medical expenses for the injured person |
| Article 1(6) | destruction of the property in which tax advice is provided, insofar as there is an obligation to repair it (e.g. a lease agreement); this does not apply to property which belongs to the insured person |
| Article 1(8) | a defect in the service provided |
| Article II(7) of the Kooperativa T&C, Article 1(7) and 7 ZPP-600/14, Article 6 ZPP P-610/14 | the occurrence of the costs of the indemnity proceedings (if they were necessary to establish the insured’s obligation to pay the indemnity or the amount thereof), defence in criminal proceedings, and legal representation |
| Article II(2.1–2.2) | carrying out financial audits, financial audits in accordance |
| Article II(2.3) | accounting activities that are provided without tax advice |
| Article II(2.4) | preparation of financial expertise and business advice |
| Article II(2.5) | destruction or loss of items entrusted by the customer, e.g. theft (the limits for loss of cash are 10,000 CZK and for loss and destruction of other items 1,000,000 CZK) |
| Article II(2.6) | Improper performance of expert activities, a limit of between 1,000,000 CZK and 10,000,000 CZK can be selected in this category |
| Article II(1.6)(a–b) | damage caused by insult, defamation or sexual harassment and abuse |
| Article II(5) | damage to the insured (however, this only applies to the tax advisor’s liability insurance, because this insurance is purchased in a package (group of insurance), which includes the repair of damage to the insured in its scope, as will be discussed below) |
| Article II(5)(b–c) | incorrectly operating bank accounts and mistakes in bank transfers |
| Article II(5)(d–e) | fraud done by the insured |
Comparison of entities obliged to conclude an insurance contract
| Tax Advisor providing services on his own name and for his own account | Yes | Yes |
| Tax Advisor in partnership | Yes | Yes |
| Professional organisations, cooperatives, associations and chambers of commerce whose statutory activity is tax advice | Yes | No |
| Audit firms | Yes | No |
| Limited liability companies, with the majority of board members being tax advisors | Yes | Yes (tax advisory company) |
| Lawyers, legal advisors, and chartered accountants if they employ tax advisors and have not taken out professional indemnity insurance for their profession | Yes | No |
| Employee of a company that provides tax consultancy services | No | Yes |