This paper is based on the research conducted by Tax Advisers - Kancelaria Doradztwa Podatkowego S.C. K.K. Kunowscy, Gdańsk. The author argues that, during a comprehensive management of municipality finances, it is necessary to include risk management of tax regulation. The research showed that various tax controversies, primarily regarding VAT (as far as tax-payers are concerned) entail a serious financial risk for municipalities. The author also points to the fundamental causes of an increase in VAT-related tax risks for the municipalities. In conclusion, the financial consequences of these tax controversies for the economy of municipalities are described, and ways of minimizing them suggested.
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