Jaak Siim achieved partial annulment of tax claim
Partner Jaak Siim represented its client in a tax dispute where as a result of court proceeding the Tax and Customs Board (TCB) annulled their tax decision to the extent of over 50%.
Initially the TCB decreased the amount of client’s input tax by 23,638.40 Euro and increased the obligation of income tax by 32,269.39 Euro, establishing that the purchase of equipment to produce fireplace wood and the receipt of construction services from the person referred to on the invoice as well as the purchase of log machine and film coating equipment were only seeming.
Tallinn Administrative Court and District Court agreed with the given assessment about seeming transactions with regard to the decrease of input tax. However, the disputed decision was annulled with regard to the income tax payable for the purchase of equipment to produce fireplace wood.
The decision of the Estonian Supreme Court dated 07.06.2018 in case No. 3-14-50103 (in Estonian) can be found here.