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Home » News » Taxation of a company car: the example of Mailis Reps

Taxation of a company car: the example of Mailis Reps

December 2, 2020

Vladimir Weingort, Doctor of Economics, Scientific Director of the Kardis Club A photo: ERR

In the past few years, the topic of the use of a company car for personal purposes and the associated taxation of a special benefit has left the priority category. A tacit consensus has emerged between the tax administrator and taxpayers. Who is more responsible and, most importantly, of those who actively use the car for personal travel – do not claim that there is no such use and reflect a special benefit; for those who have business trips prevailing – makes a note in the auto register about the exclusively official purpose of the car. So far, the tax administrator is generally satisfied with such self-regulation. How long – God knows.

And suddenly a thunder struck, just in connection with the payment of taxes from a special benefit. The Minister of Education Mailis Reps had to leave the post due to the fact that she, actively using an official car for personal purposes (her own and family members), not only did not hide this fact, but even paid the corresponding taxes from a special benefit at the expense of the ministry.


Source: https://www.dv.ee/ by www.dv.ee.

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