Tax Board to start rating businesses for tax compliance

The Tax and Customs Board.
The Tax and Customs Board. Source: Siim Lõvi/ERR

The Tax and Customs Board (MTA) will soon begin rating companies for tax compliance on a scale of one to three, daily Postimees writes.

The technical application to be created will allow the rating issued by the tax administrator to take into account, among other aspects, the timeliness of the filing of tax returns, the timeliness of the payment of taxes, punishments handed out to persons for violations of tax laws, as well as bankruptcy.

The MTA is to generate two different ratings: one for tax compliance, and the other for the absence of shortcomings in tax-related matters.

A business operator will be able to see upon logging into the e-Tax Board or the MTA's website whether everything is order between them and the MTA, and how trustworthy the authority deems them to be.

A rating of "1" will indicate very poor compliance; a rating of "3" will indicate excellent tax behavior.

The MTA hopes that the rating of businesses will also help improve tax compliance and thereby increase tax receipts.

VAT inflow is projected to grow by €6 million if at least 30 percent of the 4,573 persons deemed to be "VAT-risk" start using the new application; 56 percent would also improve their tax compliance over the next 12 months.

Increased transparency

This tool will also serve to make the competition environment more transparent and help business operators quickly and conveniently find suitable business partners. While the ratings would be displayed automatically only to the business operator in question, it will be strictly up to the operator themselves to decide whether or not to disclose their ratings to third persons.

No ratings will be compiled for physical persons, nonprofit associations and foundations.

The cost of the development and launch of the new system, developed by AS Nortal and OÜ Icefire, is €822,445, which will be covered in part by funding from the European Regional Development Fund (ERDF).


Download the ERR News app for Android and iOS now and never miss an update!

Editor: Aili Vahtla

Hea lugeja, näeme et kasutate vanemat brauseri versiooni või vähelevinud brauserit.

Parema ja terviklikuma kasutajakogemuse tagamiseks soovitame alla laadida uusim versioon mõnest meie toetatud brauserist: