Tax and Custom Board will be heard by an administrative court in
mid-October, after the leasing company filed a lawsuit denying
it had asked the state for a bigger VAT refund than allowed.
Hansa Liising, one of the first and largest leasing companies in
Estonia, had been required by the country’s tax authority to give
back EEK9.2 million (€0.6 million), a small sum in the industry but
whose payment was opposed by the company, as it could set an
unwanted precedent in the Estonian leasing and insurance
market.
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The controversy is about the way car accidents are handled, with
two alternative methods in use: in the first case, the insurance
company deals directly with the repair service; in the second, this
is done by the leasing company, which owns the vehicles and is
therefore entitled to apply for VAT refunds.
Hansa Liising, part of the Scandinavian financial corporation
Swedbank, started business in the Baltic country in 1993 and has
seen since consistent growth. In 2007, it earned a net profit of
some EEK470 million (€30 million).
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