Estonia, Financial Services, Markets and Companies, Taxation

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Estonia's tax watchdog to counsel accommodation and food sector re envelope wages

BC, Tallinn, 18.01.2017.Print version
Estonian Tax and Customs Board (MTA) is to start paying more attention to undeclared cash-in-hand wages in accommodation and food establishments, and the first step is to counsel entrepreneurs regarding the employment register, according the daily Eesti Paevaleht reports LETA/BNS.

"In the sector there are about 3,000 enterprises and it is reason to believe that in about 500 of these wages are paid at least partially as envelope wages," a spokesman for MTA Oscar Oun told the newspaper. He added that the tax authority is planning to initially contact the companies that are being suspected of that and counsel them regarding importance of the employment register.

 

"We can also visit some accommodation establishments and restaurants," Oun said. "After counseling we will monitor the person and depending on agreements, we will observe changes in the employment register or the income and social tax declaration," he said, adding that if the situation has not improved, the institution will decide if there is need for further steps.

Last year MTA contacted more than 1,000 caterers of summer events and more than 1,000 employees were added to the register, Oun s.






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