News

The Estonian Supreme Court’s judgement of the 13^th November 2007 is significant in interpreting the concept of a holder in the context of the Surplus Stock Charges Act and EU law. The taxation department of Glimstedt headed by partner Priit Lätt successfully represented an operator of a customs warehouse.

The Supreme Court held that the operator of a customs warehouse could not dispose of and offer the goods in stock on the market as the operator was not the owner of the stock. Thus, the operator did not have the opportunity to store up artificial stock, exploit it to make profit and thereby cause deflection of trade affecting the common organisation of the market. An operator of that kind can not be regarded as a holder under the Surplus Stock Charges Act § 5 (1). Furthermore, the operator does not have to fulfil the obligation to declare the status of its stock under the Surplus Stock Charges Act § 8 (1).

The Supreme Court granted our client’s appeal in cassation and required the Estonian Tax and Customs Board to bear all the procedural expenses.

To read the Supreme Court’s judgement click here.

For further information, please contact: partner Priit Lätt (priit.latt@glimstedt.ee).