Article „Envelope Salary and Obligations of Employees. Risks for the Receiver of Envelope Salary“ by Epp Lumiste and Häli Jürimäe
Informative newsletter of the Estonian business daily Äripäev has published an article „Envelope Salary and Obligations of Employees. Risks for the Receiver of Envelope Salary“ by attorneys-at law Epp Lumiste and Häli Jürimäe.
Usually the tax auditor is auditing the correct declaration and payment of taxes by entrepreneurs and, if necessary, determines additional tax payments for the entrepreneur. However, there has been less discussion about the liability of employees upon accepting envelope salary. The receipt of envelope salary shall not release the receiver or employee from the obligation to pay income tax. According to the law, upon knowingly accepting envelope salary, employee and employer are jointly responsible for paying the applicable income tax. If employer has failed to pay the income tax, employee is obliged to pay the respective amount of income tax. Additionally employee needs to take into consideration that in case the information submitted to the Tax and Customs Board in the tax declaration is incorrect, it is possible to punish the person with a fine in amount of up to 300 fine units (or up to 1,200 Euro).
The subscribers of Äripäev can read about the liability of employees and possible threats here. The article on the same topic has also been published on 4 October 2016 in the paper version of business daily Äripäev.
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