Estonia, Financial Services, Legislation, Markets and Companies, Taxation

The tax authority has interacted with about 670 entrepreneurs to whom they offered an opportunity to review their tax matters together with the authority. As a result, remuneration for work payments have increased by 1.9 million euros and labor taxes by one million euros, spokesperson for the tax authority Mailin Aasmae told BNS.

The Tax and Customs Board announced in mid-October that it intends to contact companies suspected of concealing an employment relationship to advise them on how to bring their activity into accordance with the law. It said companies not changing their practices will be subjected to a tax audit.

Incorporating in the sense of tax evasion is generally understood as a practice where, in order to avoid the payment of payroll taxes, an employment relationship between a business and an individual is concealed as a business relationship between the business and a private limited company belonging to the individual.