Tax Fraud Laws in Estonia

Tax fraud in Estonia is primarily governed by the Penal Code and Taxation Act.

• Penal Code: Sections 216-218 address offenses related to tax evasion and fraud.
• Taxation Act: Various provisions within the Taxation Act outline taxpayer obligations, penalties for non-compliance, and procedures for tax audits and investigations.

Tax fraud encompasses various actions or omissions aimed at unlawfully reducing tax liabilities or evading tax obligations. These actions may include:

• Underreporting income.
• Claiming false deductions or credits.
• Concealing assets or income.
• Failing to file tax returns or providing false information.

The penalties for tax fraud in Estonia can vary depending on the severity of the offense and the amount of tax evaded. They may include:

• Fines: The amount of the fine is determined based on the amount of tax evaded and other relevant factors.
• Imprisonment: Individuals convicted of tax fraud may face imprisonment for up to five years.

The severity of penalties corresponds to the magnitude and nature of the fraud committed, with more significant penalties imposed for intentional and egregious violations.

The investigation and prosecution of tax fraud cases in Estonia involve several steps:

• Detection: Tax fraud may be detected through audits conducted by the Estonian Tax and Customs Board or through information provided by whistleblowers or other sources.
• Investigation: Once suspected tax fraud is identified, the Tax and Customs Board investigates the case to gather evidence and assess the extent of the fraud.
• Prosecution: If sufficient evidence of tax fraud is found, the case may be referred to the prosecutor's office for prosecution.
• Trial: The case is heard in court, where the defendant has the opportunity to present a defense. If found guilty, the defendant may be subject to fines, imprisonment, or both.