The Government has approved amendments to the Taxation Act, which will render pointless using of ‘front man’ in business and decrease the number of crimes, which result in an unfair fiscal advantage.
The tax arrears liability of business owner, who has intentionally left a company in tax arrears, which the company is unable to pay, will also be justified. This will call for a thorough burden of proof from the tax administrator to show that the tax arrears did not arise as a result of carelessness.
The amendments will also alleviate the burden of the Tax and Customs Board – the Board will be able to adopt decisions automatically and verify them by an e-stamp, what will enable to save time and cut the costs.
The publishable maximum amount of tax arrears raises from the current 10 euros to 100 euros, and other obligations administrated by the Tax and Customs Board will be published in addition to tax arrears – fines, penalty payments, and the costs of substitutive enforcement.
The tax audits and inspections of single events will no longer be deemed different types of fiscal control, as they are actually similar in practice.
The Employment Register will include information about the employees’ job positions and the location of performing the duties, which is required for collection of national statistical data.
The Tax and Customs Board will also be sending tax information to the Defence Resources Agency about persons liable to national defence obligation and to the Police and Boarder Guard Board about citizens of other EU countries employed in Estonia, if necessary. In certain cases, it is necessary to disclose information about such foreigners in order to prevent violation of the conditions of temporary stay, residing, or working in Estonia.
The law is scheduled to enter into force on 1 January 2019.