Advising Tallink Group on the legislative proceeding of the draft Maritime Safety Act in the Parliament of Estonia

03.03.2013 Advising Tallink Group on the legislative proceeding of the draft Maritime Safety Act in the Parliament of Estonia

The firm's tax and competition teams, under the leadership of Helmut Pikmets, advised the Tallink Group on the legislative proceeding of the draft Maritime Safety Act in the Parliament of Estonia (Riigikogu).

One of the aims of the draft act was to increase the waterway charge to a significant extent. The firm drew up a legal opinion for the Finance Committee of the Riigikogu on future amendments. It stated that the planned amendments, which will increase the tax burden of those concerned, are not constitutional as the financial burden will increase considerably and immediately. A retroactive effect of the amendment to the act is not excluded either, as those concerned may already have made their economic decisions before the legislative proceeding of the act and rely on the currently applicable duty in the coming financial years. The legal opinion also referred to several possible violations of competition law and the state aid principle.

Following submission of the legal opinion and a memorandum to the Finance Committee and another analysis of the issue in relevant ministries, several amendments easing the situation were made to the draft act. The initially planned entry into force of the act on 1 January 2013 was postponed to 1 July 2013 and the planned tax increase was also reduced.

On the same topic

Riigikogu: Draft legislation on the compensation of land tax introduced to legislative proceeding
Riigikogu: Draft Act to Amend the Maritime Safety Act 283 SE
Chancellor of Justice: On the establishment of a waterway charge. Draft Act to Amend the Maritime Safety Act 283 SE
E24 portal: Draft to increase shipping charges to first reading
Accounting news portal: Plan to legalise increase in shipping charges fast
Äripäev: Tax increase in maritime transport to first reading
Blog of Kaja Kallas: About the Maritime Safety Act

Lawyers

Helmut Pikmets
Sergei Jegorov
Triinu Järviste