OREANDA-NEWS. April 02, 2015. On 11.08.2014, Tallinna Kaubamaja AS published a stock exchange announcement, informing that its subsidiaries are requesting a return of sales tax paid from 1 June 2010 to 31 December 2011 in Tallinn in total of 3.27 million euros. As the return claims of sales tax of the subsidiaries of Tallinna Kaubamaja AS were not satisfied with tax decisions of the Tallinn City Enterprise Board, the subsidiaries of Tallinna Kaubamaja AS have submitted complaints against tax decisions of Tallinn City Enterprise Board made in connection with the return claims to Tallinn Administrative Court.

On 31.03.2015, Tallinn Administrative Court made a judicial decision not to satisfy complaints of AS Viking Motors, AS TKM King and O? TKM Beauty Eesti against tax decisions of Tallinn Business Department, refusing to return sales tax in total of 0.21 million euros. The subsidiaries of Tallinna Kaubamaja AS see a reason to continue the dispute and take an appeal against the decision of Tallinn Administrative Court to the district court.

Proceeding of the complaints of Selver AS and Kaubamaja AS, covering also sales tax paid from the sale of excise goods, was suspended with the decision of Tallinn Administrative Court until enforcement of the decision of the European Court of Justice concerning excise goods in the case C-553/13. On 5 March 2015, the European Court of Justice made a decision in the mentioned case, based on which the sales tax applied in Tallinn in the abovementioned period was not in compliance with the excise directive and collection of sales tax from the sale of excise goods was not legal. Although the European Court of Justice does not decide national cases, with the referred decision they provided a clear opinion that sales tax was collected from excise goods in conflict with the law of the European Union, more specifically, with the excise directive. Pursuant to the mentioned decision of European Court of Justice, by now, Tallinn Administrative Court has renewed proceeding of the complaints of the subsidiaries of Tallinna Kaubamaja AS concerning excise goods.

Tallinna Kaubamaja AS will inform the stock exchange of any major steps in the court action related to return claims of sales tax according to the procedure specified in the rules and regulations of the stock exchange.