Successful representation against Lithuanian and Estonian tax authorities

Lithuanian and Estonian tax authorities conducted a joint investigation into the client’s transactions in these jurisdictions. The authorities wanted to reclassify the purchase of shares as a distribution of profits and treat the client as a disregarded entity because of its lack of substance.

Our tax department successfully managed all enquiries during the investigation and guided the client safely through the entire process without being assessed any additional taxes. This process was important as it allowed us to establish more or less precise requirements for the customer to be considered genuine. This will enable these criteria to be used in other future tax disputes where economic substance requirements will be addressed.