Public prosecution authorities in Estonia are conducting an investigation into logging company Södra Eesti for incorrect management of VAT in conjunction with timber sales. Södra Eesti’s involvement amounts to some SEK 7 million in VAT and other taxes that are under question.
Södra Eesti has closed the timber terminal involved and suspended the employees under investigation.
Södra Eesti is 51 per cent owned by Södra and 49 per cent by SCA Skog. The owner company has commenced an internal investigation and is cooperating fully with Estonian public prosecution authorities.