LPP partners in the Cooperation Programme implemented by the National Tax Administration

The Polish clothing group LPP has signed an agreement with the National Tax Administration as part of the Cooperation Programme, aimed at entities with revenues exceeding EUR 50 million and playing a key role in the development of the national economy. LPP, as one of the largest private taxpayers in Poland, has joined the group of eleven companies in the project so far, thus becoming an entity of public trust. The aim of the programme is to facilitate the proper fulfilment of tax obligations on a cooperative basis, acknowledging the individual needs and expectations of key taxpayers.

Initiated by the Ministry of Finance, the Cooperation Programme constitutes a new form of cooperation between Poland’s largest companies and the tax administration in the Polish market, going beyond statutory obligations. In practice, this entails not only a completely new approach to the form of supervision over the activities of key taxpayers. Cooperation based on values such as mutual trust, understanding and, above all, transparency, opens up a catalogue of benefits for each party. The fundamental principle, however, is that participation in the programme is voluntary and, hence, agreement to undergo a detailed tax audit. This includes an assessment of the fulfilment of tax obligations in terms of CIT, PIT, VAT and customs duties, as well as an analysis of the framework of internal tax supervision measures implemented in the company. The agreement signed by LPP with the National Tax Administration is a confirmation of the positive outcome of the audit conducted at the company, which is one of the main prerequisites for taking part in the Cooperation Programme.

–  As a Polish family business, for almost three decades we have been developing our operations not only in Poland, but also in foreign markets. However, it is here in Poland where our company headquarters still operate, where we design our collections and invest. Also in Poland, as one of the largest private tax payers, in 2022 alone we paid dues amounting to PLN 1.7 billion to the budget. In parallel, while making investments worth PLN 1.3 billion a year, we are aware that with our increased growth the importance of our activities for the Polish economy is also raised. On the other hand, the development and support of Polish exports would not be possible without the trust of both our customers and business partners. That is why we treat the signing of an agreement with the National Tax Administration as an element of building trust based on full transparency of the processes implemented at LPP, especially those concerning tax issues – comments Przemysław Lutkiewicz, vice-president of the management board, LPP.

 One of the basic assumptions of the Cooperation Programme is also that the tax administration adjusts the service and the level of supervision and monitoring of the taxpayer to its needs and expectations. An individualised approach combined with the possibility of obtaining support in the interpretation of regulations is a guarantee of the correct application of tax law regardless of the industry or scale of operations, and thus the security of business decisions taken by the company’s management.

– From the perspective of a company currently operating in nearly 40 markets, often in very diverse legal and tax conditions, issues of correct fulfilment of tax obligations are crucial for us. Given the scale of our business, we often face challenges related to the correct interpretation of regulations in relation to national or EU regulations. Thanks to the Cooperation Programme, we are confident in the way we run our business and sure of further development of the company in a stable and safe manner. Ensuring direct contact with a representative of the tax administration and the possibility of obtaining ongoing support in interpreting a given situation on the conditions of full transparency and cooperation, rather than control, is a factor that is extremely important for the company – says Sławomir Łoboda, vice-president of the management board, LPP.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years, it has been successfully operating in Poland and abroad, offering its collections in such prestigious capitals as London, Helsinki or Tel Aviv. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay, whose offer is available today in stationary and online stores in nearly 40 markets worldwide. The company has a chain of over 2000 stores with the total area of 1.9 million m2 and distributes clothing and accessories to 3 continents every year. LPP also plays an important role as it employs nearly 30 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.