Summary

The burden of proof plays a central role in the decision-making process in tax proceedings. A deficient regulation of the burden of proof may lead to incorrect decisions for both taxable persons as well as the tax authorities (the state). As taxes constitute a monetary liability, incorrect taxation causes direct harm and, primarily, for the taxable person. In addition, everyone is affected by the collection of taxes regardless of their will, and, therefore, incorrect taxation is always strongly felt.
There has been continued criticism of issues regarding the regulation of the burden of proof in Estonia for a long time. A new Taxation Act entered into force on 1 July 2002 defining the general framework of taxation and providing the specific rules of procedure, including those governing the division of the burden of proof. One of the purposes of the draft Taxation Act is to create a greater sense of security for taxable persons. Is the draft Act successful in this respect? This question is addressed by the author relying on the German tax law in comparison with the tax laws of Estonia and the USA.