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RASK tax advisers question constitutionality of tax rates
RASK tax advisers question constitutionality of tax rates
Attorney Villy Lopman is representing a client in the Tallinn Administrative Court in a dispute where the compatibility of statutory tax rates (0.06% per day) is being inspected with regard to the Constitution of the Republic of Estonia.
The court has not yet taken a decision. In this case, however, it is extraordinary that the Chancellor of Justice has noticed the issue, and in turn, started an investigation into the matter.
RASK takes the view that the interest regulation in the current Taxation Act is clearly disproportionate because it does not account for current valid interest rates and what interest rate the state has borrowed money at themselves.
The Chancellor of Justice has raised the issue from the perspective that today’s extremely high interest rates may seem punitive.
The court has not yet taken a decision. In this case, however, it is extraordinary that the Chancellor of Justice has noticed the issue, and in turn, started an investigation into the matter.
RASK takes the view that the interest regulation in the current Taxation Act is clearly disproportionate because it does not account for current valid interest rates and what interest rate the state has borrowed money at themselves.
The Chancellor of Justice has raised the issue from the perspective that today’s extremely high interest rates may seem punitive.