Estonia: Penalties on taxpayer who failed to appear in person to provide explanations to tax authority upheld

Tallinn District Court judgment

Tallinn District Court judgment

The Tallinn District Court (judgment 3-22-1154) upheld penalties imposed upon a taxpayer that failed to provide in-person oral explanations about certain economic activity to the tax authority.


A member of the taxpayer’s management board was asked to give in-person oral explanations about certain economic activity to the tax authority, but the board member asked permission to provide explanations virtually because the taxpayer’s accountant was unable for health and personal reasons to appear with the board member in person. The tax authority argued that the accountant’s presence was unnecessary (or could be accommodated with personal protective equipment) and denied the board member’s request. When the board member still failed to appear in person to provide the explanations, the tax authority applied non-compliance levies, which the court upheld.

Read a March 2024 report prepared by the KPMG member firm in Estonia 



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