In June 4 the Tax and Customs Board held an audit among nearly 300 small shops and cafes all over Estonia, the Tax and Customs Board announced.
More than 170 tax administrators controlled companies where the analysis pointed to possible tax fraud. Tax administrators observed businesses and investigated whether employees are reported in tax declarations, also if and how general accounting has been organized.
Preliminary analysis pointed that about half of the companies were hiding turnover or paying salaries under the table. Audit found employees who are not reported in tax declarations or their declared salary is notably smaller from actual salary.
Some employees grabbed their things and ran away after tax administrator had introduced himself/herself.
The board decided to conduct an audit since analysis showed that tax risks are notably higher in areas where settling is largely in cash.
In 2008 Tax and Customs Board got 264 hints of paying under the table. This year the number is 514.