WALLESS Shares Research on Tax Audit Appeals in the Baltics

WALLESS tax partners Ingūna Ābele, Aistė Medelienė, and Rolan Jankelevitsh, as well as associate Kristers Zālītis and counsel and attorney at law Priit Raudsepp, recently conducted unique research on tax audit appeals in the Baltics.

The tax work group discovered a significant difference between the number of tax audits performed in Estonia in comparison to Lithuania and Latvia, likely due to Estonia relying on one sole form of tax control procedure.

Further differences between Estonia and Lithuania/Latvia are present in that fines are capped and not set regarding their percentage in Estonia and taxpayers in this state are not required to appeal with their respective tax authority.

Alternatively, similarities may be found between Estonia and Latvia (in contrast to Lithuania), as an obligatory payment of disputable tax shortfall must be made prior to court, and that the calculated tax amount may not be changed.

Research also indicates that Estonia has the highest penalty interest rate and Lithuania has the lowest, while most appealable decisions are taken by Latvian tax authorities and the least by those in Estonia.

For a more extensive overview of the comparative research, please review the following.