MP’s manor house hotel ramps up €125,967 tax debt

Reform Party MP Eerik-Niiles Kross’s company, Kõue Mõis OÜ, has not yet submitted its 2016 annual report. The company also has a tax debt of €125,967.

Kõue Mõis OÜ runs Kau Manor in Kose, Harju County. Kross and his wife, artist Mary Jordan, bought the then crumbling property in 2007, restored it, and turned it into a boutique hotel.

The company had tax debt in earlier years as well, sums ranging from €1,300 to €16,500 in different months in 2014, only three months with less than a five-figure debt in 2015, and eventually €30,000 to €40,000 in most months last year.

Kõue Mõis’ tax debt has been on the increase since November last year, reaching €120,492 on July 18. On top of that, the company owes €5,475 in interest. Of the total debt, €67,701 has already expired.

As Kross explained to ERR, the tax debt occurs due to several different factors. “First of all certainly because I’m a bad manager. Arguably also because I pay salaries before I pay tax, and because I’d rather be indebted to the state than to my employees,” Kross said.

On top of that, the tax debt was also caused by bad hiring decisions made in the past, but now they had a team he was very happy with, he added.

“One could also argue that we’re enjoying Estonia’s overly high labor taxes to the fullest, as we’re not paying salaries under the table. Observing historic traditions is important as well, Estonia’s manors have always been in someone’s debt since medieval times,” Kross quipped.

The company was dragging along a month’s worth of social tax or two, and they were expecting to even things out this year, if the numbers remained the same, he added.

The 2016 annual report was currently with the auditor and to be submitted as soon as it was ready.

Kau Manor employs 28. For 2015 it reported a sales revenue of €471,000 and a loss of €226,979. Kõue Mõis OÜ’s parent company, Trustcorp, also has tax debt in the amount of €2,943.

In 2015 Swedbank withdrew as Kau Manor’s largest investor, replaced by Blue Oil Limited, a company registered in the British Virgin Islands. Blue Oil took over a loan from Swedbank in the amount of about a million euros, the collatoral for which is the Kau property.

The Riigikogu’s Anti-Corruption Select Committee looked into the swap in 2015, but decided not to investigate.

Read more news on the city site of Tallinn.

eerik-niiles_kross kau_manor
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet


Post your comment to communicate and discuss this article.

Coalition partner the Social Democratic party (SDE) has announced its top riders for the March 2019 elections in Estonia's 12 electoral districts, though its full list will be confirmed in December, the party says. There are no real surprises on a well-stocked list which includes the recently-attracted Indrek Tarad, currently still an independent MEP. Mr Tarand, whilst standing for SDE, has not as yet become a party member. Since the system in Estonia is a...
According to Statistics Estonia, the change of the consumer price index in October 2018 was 0.5% compared to September and 4.4% compared to October of the previous year. Goods were 3.7% and services 5.7% more expensive compared to October 2017, while regulated prices of goods and services increased by 9.1%, and non-regulated prices by 3.1%. Compared to October 2017, the consumer price index was affected the most by transport, which contributed nearly a thi...
The Ministry of Culture has rejected the request of English-language web magazine Estonian World (EW) for support from the state to to the tune of €5,000 for the remainder of 2018. The ministry has, however, promised to seek opportunities for supporting the portal in 2019. "Unfortunately, the support to this extent of English-language Estonian media outlets is not provided for in the agenda and budget of the government-approved Compatriots Programme for th...
Last Wednesday, Theatre NO99 abruptly announced that it would be closing its doors, with its final performances scheduled for November and December. The theatre will be vacating a large building at the Central Tallinn address of Sakala 3, interest in which has been expressed by Sakala Skene, a new open centre for the performing arts and theatre education. Sakala Skene is a new brand uniting Polygon Theatre and Polygon Threatre School, Old Baskin's Theatre,...
The European Athletics Council has decided to award the right to host the European Athletics Under 20 Championships in 2021 to the Estonian Athletic Association, which will stage the event at Tallinn's Kadriorg Stadium. The same format was previously successfully hosted by the Estonian Athletic Association in 2011, in collaboration with the City of Tallinn. At the European Athletics Council meeting in Budapest, the Estonian bid to host the event was presen...
The Ministry of Foreign Affairs has reopened the Estonian embassy in Budapest. The ministry announced the step on social media on Monday, saying that starting 5 November the embassy is offering consular services again. The embassy is providing consular services and assistance starting 5 November. Anyone who would like their documents issued there can indicate so on the application form, the ministry said. Consular services are available by advance appointm...
Every day, some 30 people in Estonia call the Health Board complaining that a family doctor in Tallinn won't take them as a patient even though they technically have room on their patient rosters to accept new patients. Family doctors, however, find that working with too large a patient list could jeopardise the quality and accessibility of their care. Estonian Society of Family Doctors chairperson Le Vallikivi explained to daily Postimees that they are fa...
Conservative People’s Party (EKRE) Riigikogu group chair Martin Helme has paid to boost his social media presence and used Riigikogu expenses benefits to pay for highlighting posts, a recent Riigikogu Chancellery document reveals. Postimees wrote earlier in the week about EKRE’s social media success and how their messages seem to reach more voters. Facebook’s company pages can be highlighted to reach more people. But the practice costs money. Bought posts...
40% of employers in Estonia intend to increase their employees' wage levels, while 39% are planning on creating new positions and 70% intend to hire new employees to replace outgoing workers and fill temporary or new positions, it appears from a survey conducted by recruitment portal and the Salary Information Agency. "40% of employers are planning to raise their employees' basic salaries, which is indicative of the wage pressures resulting fro...