CFC. Business Risks and New Court Practice

CFC risks for business are no longer a distant theory but an everyday reality — especially after a series of tax authority victories in court and landmark Supreme Court decisions in 2025. The courts have officially expanded the use of CFC reports as evidence of foreign structure control and actual place of management, which immediately leads to additional assessments, fines, and even the prospect of criminal liability.
Why you need to act after the first requests
Previously, many businesses viewed the tax notice of assessment as the ‘starting point’ for problems — but today, even a formal or ‘friendly’ inquiry from the tax service signals the activation of future risks. A tax audit initiated by a request gives the tax authorities and BES full access to documentation, corporate connections, and the owner’s actual behavior.
These victories are now arguments for greater inspector activity:

• 2025 precedents showed that courts consider even minor CFC report details, and decisions are often in favor of the authorities.
• The trend has shifted: formalities no longer protect — now the entire management and beneficiary chain is analyzed, not just the documents.
  Tax requests — a warning sign
  Once even an ordinary request is received, you should immediately call in specialists, not wait for the ‘official’ dispute stage:
• Risk assessment, response strategy, and preparation for possible fiscal pressure become critical right from the start.
• Court victories gave tax authorities more tools: attention to detail, readiness to use all levers, criminal law activation (Art. 212, 209 Criminal Code).
  A new standard of defense
  When business reacts professionally to tax inquiries, it retains flexibility and control. This creates a competitive edge in a market where fiscal practice changes under court precedent influence.
  A simple tip: proactive action at the initial stages keeps you in the game.
  Today, tax requests have become a starting point for risk — following major tax authority victories in the Supreme Court, regulatory bodies will act even more actively and strictly. Evaluate your legal support now!
  Author: Maksym Bahniuk, Head of Tax and Customs Law Practice at “WINNER” Law Firm.