Tax Law and Tax Disputes
In tax matters, the cost of a mistake can be high, from interest and a fine to a liability decision or criminal proceedings. A tax audit, notice of assessment or liability decision from the Estonian Tax and Customs Board does not, however, mean that the dispute is lost from the outset.
A tax dispute often begins with an audit, an enquiry or a notice of assessment by the Estonian Tax and Customs Board. Common disputes concern value added tax, income tax, employment taxes, business expenses, tax arrears and the actual substance of transactions. Explanations and documents provided already during the audit may affect the entire further proceedings.
A notice of assessment or liability decision may be challenged by filing a challenge or through administrative court proceedings. The liability of a member of the management board requires separate attention, because in certain cases the tax obligation of a company may be imposed personally on a member of the management board. If suspicion of a tax offence arises in a tax matter, the risks must be assessed from the perspective of both tax law and criminal proceedings. Law Firm Namm prepares challenges and complaints, represents clients in proceedings before the Estonian Tax and Customs Board and in the administrative court, and, where necessary, also defends clients in criminal proceedings. We work in Estonian, Russian and English.
What services we provide in tax law and tax disputes
- Tax advice for companies and natural persons
- Representation in proceedings before the Estonian Tax and Customs Board
- Advice in tax audits and inspections
- Challenging notices of assessment
- Challenging liability decisions
- Matters relating to the tax liability of a member of the management board
- Value added tax disputes
- Income tax disputes
- Matters relating to employment taxes
- Payment of tax arrears in instalments and agreements
- Transfer pricing advice
- International taxation and tax treaties
- Matters relating to excise duties
- Defence in criminal matters relating to tax offences
- Representation in tax disputes before the administrative court
Frequently Asked Questions
The Estonian Tax and Customs Board has opened an audit. What should I do?
A tax audit should be taken seriously even if, in your view, nothing has been done wrong. Before submitting documents and explanations, it is worth assessing what the authority is asking for, which period is being audited and what risks may arise. Well considered answers help avoid a situation where a later dispute becomes more difficult.
I received a notice of assessment with which I do not agree. Can I challenge it?
Yes. A notice of assessment can be challenged by filing a challenge with the Estonian Tax and Customs Board or by applying to the administrative court. The time limit for filing a challenge is usually 30 days from notification or service of the decision. When challenging a decision, it is important to present clear legal arguments and evidence supporting them.
What is a liability decision and is a member of the management board liable for the tax arrears of a company?
Under a liability decision, the Estonian Tax and Customs Board may require a third person, for example a member of the management board, to pay the tax arrears of a company. The liability of a member of the management board does not arise automatically, but requires the grounds provided by law. Usually, it is assessed what the role of the member of the management board was, whether obligations were breached and whether the breach was intentional or due to gross negligence.
I have tax arrears that I cannot pay all at once. What can be done?
In the case of tax arrears, it may be possible to apply for payment in instalments. This may help avoid compulsory enforcement and give an opportunity to pay the arrears in a controlled manner. It is important to act before the arrears increase, new claims are added or stricter measures are applied.
When can a tax matter become a criminal matter?
A tax matter may become a criminal matter if there is suspicion of intentional tax evasion, submission of false information or another tax offence. In such a situation, the issue is no longer only the tax amount, but also potential criminal liability. It is therefore necessary to assess at an early stage what to say, which documents to submit and how to protect your rights.
How long can the Estonian Tax and Customs Board assess tax retroactively?
As a rule, the limitation period for assessing tax is three years. In the event of intentional failure to pay or withhold a tax amount, the period may be five years. This means that the authority may audit earlier periods and recalculate tax for a certain period, but this right also has limits.