TALLINN — Is the crisis expanding Estonia’s gray market employment?

The most recent numbers seem to indicate it is. A six-year fall in undeclared income during the “Baltic Tiger” boom ended in 2007. In 2008 the Tax and Customs Board estimated they were losing an estimated 365 million krooni (€23.4 million) in unpaid employment taxes and in 2009 this doubled to an estimated total of 877 million krooni (€56.2 million).

While Latvia is planning a measure to encourage businesses to [private_supervisor]come clean with their tax practices, the Estonian government acknowledges that its a difficult practice to change.

“In general it is difficult to tackle undeclared work as it may be beneficial in terms of increased income for both the employer and employee,” Egon Veermäe, head of the tax board’s auditing department said. “However, changes in attitudes will occur when employees acknowledge the social risks accompanying undeclared work and employers think about the situation of competitiveness in the market.”

This week a poll, albeit non-scientific, created a stir in the Estonian media. An online poll conducted by the Estonian jobs website CV Keskus shows that 29 percent of respondents recently received an undeclared “envelope” salary from their employer.

The poll is posted on CV Keskus’ website and has 1,874 respondents so far.

CV Keskus CEO Paavo Heil said the poll results reflect the current situation of some Estonian companies, as only 9 percent of people admitted they receive unofficial salary in 2007.

“Despite companies’ overall positive expectations on the future of economy, there are still many enterprises who decided not to pay taxes either to survive or earn more profit,” Heil told the press.

A number of tax hikes were implemented by the government this year despite the crisis in order to keep the country on-track for eurozone accession in 2011. [/private_supervisor] [private_subscription 1 month]come clean with their tax practices, the Estonian government acknowledges that its a difficult practice to change.

“In general it is difficult to tackle undeclared work as it may be beneficial in terms of increased income for both the employer and employee,” Egon Veermäe, head of the tax board’s auditing department said. “However, changes in attitudes will occur when employees acknowledge the social risks accompanying undeclared work and employers think about the situation of competitiveness in the market.”

This week a poll, albeit non-scientific, created a stir in the Estonian media. An online poll conducted by the Estonian jobs website CV Keskus shows that 29 percent of respondents recently received an undeclared “envelope” salary from their employer.

The poll is posted on CV Keskus’ website and has 1,874 respondents so far.

CV Keskus CEO Paavo Heil said the poll results reflect the current situation of some Estonian companies, as only 9 percent of people admitted they receive unofficial salary in 2007.

“Despite companies’ overall positive expectations on the future of economy, there are still many enterprises who decided not to pay taxes either to survive or earn more profit,” Heil told the press.

A number of tax hikes were implemented by the government this year despite the crisis in order to keep the country on-track for eurozone accession in 2011. [/private_subscription 1 month] [private_subscription 4 months]come clean with their tax practices, the Estonian government acknowledges that its a difficult practice to change.

“In general it is difficult to tackle undeclared work as it may be beneficial in terms of increased income for both the employer and employee,” Egon Veermäe, head of the tax board’s auditing department said. “However, changes in attitudes will occur when employees acknowledge the social risks accompanying undeclared work and employers think about the situation of competitiveness in the market.”

This week a poll, albeit non-scientific, created a stir in the Estonian media. An online poll conducted by the Estonian jobs website CV Keskus shows that 29 percent of respondents recently received an undeclared “envelope” salary from their employer.

The poll is posted on CV Keskus’ website and has 1,874 respondents so far.

CV Keskus CEO Paavo Heil said the poll results reflect the current situation of some Estonian companies, as only 9 percent of people admitted they receive unofficial salary in 2007.

“Despite companies’ overall positive expectations on the future of economy, there are still many enterprises who decided not to pay taxes either to survive or earn more profit,” Heil told the press.

A number of tax hikes were implemented by the government this year despite the crisis in order to keep the country on-track for eurozone accession in 2011.[/private_subscription 4 months] [private_subscription 1 year]come clean with their tax practices, the Estonian government acknowledges that its a difficult practice to change.

“In general it is difficult to tackle undeclared work as it may be beneficial in terms of increased income for both the employer and employee,” Egon Veermäe, head of the tax board’s auditing department said. “However, changes in attitudes will occur when employees acknowledge the social risks accompanying undeclared work and employers think about the situation of competitiveness in the market.”

This week a poll, albeit non-scientific, created a stir in the Estonian media. An online poll conducted by the Estonian jobs website CV Keskus shows that 29 percent of respondents recently received an undeclared “envelope” salary from their employer.

The poll is posted on CV Keskus’ website and has 1,874 respondents so far.

CV Keskus CEO Paavo Heil said the poll results reflect the current situation of some Estonian companies, as only 9 percent of people admitted they receive unofficial salary in 2007.

“Despite companies’ overall positive expectations on the future of economy, there are still many enterprises who decided not to pay taxes either to survive or earn more profit,” Heil told the press.

A number of tax hikes were implemented by the government this year despite the crisis in order to keep the country on-track for eurozone accession in 2011. [/private_subscription 1 year]

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