1. AUDITING OF STATE REVENUE State Audit Office of Estonia

2. 2 Statistics of state revenue in Estonia nEstonian state revenue is mostly dependent on taxes Fiscal year 2003: nPercentage of tax revenue in state revenue: 87% nPercentage of total state revenues to GDP: 42%

3. 3 Tax Revenue 2003 Type of taxPercentage of tax revenue in 2003 Social tax39.7 VAT31.1 Personal income tax10.9 Corporate income tax6.0 Other tax revenues12.3

4. 4 Mandate of State Audit Office of Estonia The mandate of SAO is set out: nState Audit Office Act nState Budget Act According to State Budget Act SAO has an obligation to present to the Parliament an opinion on the state budget execution report (includes report on revenue collection)

5. 5 Mandate of State Audit Office of Estonia SAO has access to: nall accounts and records of Tax Administration nall accounts and records of Individual taxpayers on-line data of accounts and records of Tax Administration

6. 6 Resources and organisation nSAO has no special unit or auditors for conducting the revenue audits. nFinancial audits of state revenue are conducted by financial audit department.

7. 7 Audit objective nAudit objective: 1) Are the collected revenues recorded properly? 2) Are all collected revenues transferred into the state budget on the right time and in the right amount?

8. 8 Co-operation between SAIs We propose following forms of co-operation: nTraining programs nJoint working group for adopting already existing guidelines and methodology