Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/22/2013

Estonia - Management’s liability for unpaid tax; intra-governmental transaction VAT 

February 22:   Cases in Estonia concerning tax issues include the following:
  • The Supreme Court upheld the position of the tax authorities that a member of a company’s management board was liable for the company’s unpaid tax liability. In this case, the tax authorities established that the company committed tax fraud, which then resulted in its insolvency.
  • The Tallinn Court of Appeal addressed the liability of a member of the company’s management for unpaid taxes. In this case, the company repeatedly made unsecured loans to a subsidiary, even though the company itself was facing bankruptcy. Eventually, the company became insolvent. However, it was found that the tax authorities had not sufficiently substantiated the culpability of the management board member.
  • The Administrative Law Chamber of the Supreme Court clarified the authority of local governments to impose value added tax (VAT) on transactions between local governments.

Read a February 2013 report [PDF 49 KB] prepared by the KPMG member firm in Estonia: InfoCourier: Court Judgments (February 2013)




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