TALLINN – The Estonian Tax and Customs Board is about to send notifications to over 5,000 people on Thursday who have received income from the sale or rent of real estate in the past four years but have not declared it and have paid no income tax on such income.
"We are continuously updating our risk models to identify places of potential tax evasion," Erkki Paulus, unit head at the tax audit department of the Tax and Customs Board, said in a press release. "If you leave your taxes unpaid, there is an ever growing probability that you will get a phone call, an e-mail or an invitation to a conversation from the Tax and Customs Board soon."
Notifications will be received by people who have sold real estate in the past four years and not declared resulting income, or who possess residential premises on which no rental income has been declared. If income has been received, amendments have to be made to the physical person's tax returns for previous years by Feb. 7 the latest and also an interest paid.
If no income has been received, the Tax and Customs Board has to be informed about it and proof provided when necessary.
Under law, proceeds from the sale of a property that has was the seller's place of residence are exempted from income tax. Such exemption cannot be used more often than once every two years.