A bill under preparation at the Ministry of Finance would give the Tax and Customs Board (MTA) the ability to demand labor taxes from a company, even if the MTA cannot prove how much was paid and who to.
The move aims to crack down on “envelope wages,” ie. undeclared payments made in cash.
Officials say they hope the change will bring the state approximately €1.7 million in additional revenues.
According to the MTA, approximately 5,500 employers in Estonia engage in paying envelope wages.
As things currently stand, if the agency can prove how much envelope wages were paid and to whom, it can demand both income tax and social tax from the company.
More read: ERR.EE
