Administrative Court annulled the tax authority’s claim against Wendre

Ellex in Estonia successfully advised Wendre AS in a claim where the tax authority required Wendre to declare and pay income tax on an amount exceeding 300,000 euros, which the company had, according to the tax authority, paid as an excessive expense to its parent company Trading House Eesti.

Additionally, the authority imposed 20,000 euros in income tax on Wendre in connection with the company’s guarantee of the loan obligation of Trading House Property, which belongs to the same group.

The Administrative Court found the tax authority’s decisions to be unlawful and annulled them. In other respects, the court dismissed Wendre’s complaint. The judgment is not yet final, and the dispute may continue in the circuit court.

Wendre AS is advised by Tax Counsel Dmitri Rozenblat.