Poland Proposes Changes for Family Foundations to Stop Tax Abuse

Poland is mulling tweaks to how it taxes family foundations to ensure those entities act as a tool for succession, not tax evasion.

The changes would introduce an asset lock-up provision instituting a temporary three-year exclusion from tax exemption on income from the sale of assets contributed to a family foundation, the country’s finance ministry said in a release Aug. 8.

The proposal aims to prevent asset transfers to a family foundation in order to take advantage of the tax benefits.

• The change would also subject family foundations to tax on their shares in a controlled foreign corporation and clarify ...