Tax advisor vs accountant – what is the difference?

Who is a tax adviser?

A tax adviser is a profession of public trust, the rules governing the practice of which are set out in the Tax Advisers Act. To become a tax adviser, one must hold a university degree, complete a professional internship, and pass a state examination comprising a written and an oral component. Those practising this profession must be listed on the register maintained by the National Chamber of Tax Advisers, and in professional dealings they often include their registration number alongside their signature. Tax advisers are bound by statutory professional secrecy and are required to hold civil liability insurance. A tax adviser is responsible for the accuracy of the opinions and advice they provide, as well as for the tax documents they prepare.

A tax adviser may, amongst other things:

• provide tax advice and opinions,
• plan an optimal tax strategy,
• prepare tax returns and declarations,
• represent taxpayers before tax authorities and administrative courts,
• prepare applications for individual tax rulings.

Who is an accountant?

In Poland, the profession of accountant is not regulated by a separate act, but its practice is primarily based on the provisions of the Accounting Act. Although there are no formal statutory requirements regarding qualifications, in practice both relevant specialist education and professional experience are highly valued. Many accountants confirm their competence by obtaining industry certificates, such as the Accountant’s Certificate issued by the Association of Accountants in Poland (SKwP) or the international ACCA and CIMA qualifications. An accountant’s scope of responsibility may encompass both civil and criminal liability, depending on the nature and severity of any errors committed. Furthermore, those running accounting firms are required to hold compulsory third-party liability insurance.

The main duties of an accountant include:

• keeping accounting records or a revenue and expenditure ledger,
• preparing financial statements,
• checking financial documentation,
• providing HR and payroll services.

Where do accounting services end and tax consultancy begin?

An accountant, acting within the framework of the Accounting Act, is primarily concerned with recording economic events. However, activities such as providing advice, opinions and explanations on tax matters or assessing the tax implications of specific actions are reserved for tax advisers, solicitors, legal advisers and chartered accountants. In practice, this means that an accounting firm should not provide advisory services unless it holds the appropriate authorisation, as this may lead to serious legal consequences for both the accountant and the firm they represent. Furthermore, professional indemnity insurance for accounting services does not usually cover the consequences of such activities.

The differences between these professions also relate to the scope of representation. An accountant may represent a taxpayer before the tax office in day-to-day matters, provided they hold the appropriate power of attorney. A tax adviser, however, is entitled to represent a client in contentious proceedings and during court proceedings before provincial administrative courts and the Supreme Administrative Court.

Cooperation between an accountant and a tax adviser – the best results

Both tax advisers and accountants play vital roles in the proper management of a company’s finances. Understanding the differences between these professions allows you to select support tailored to your business’s current needs, which translates into tangible organisational and financial benefits. When dealing with complex tax issues requiring specialist analysis or representation before the tax authorities, the tax adviser will be the key partner. Conversely, when it comes to day-to-day bookkeeping and the preparation of financial statements, the accountant plays an indispensable role.