More Latvian companies dodging social contributions

Take note – story published 5 years ago

The number of companies and individual entrepreneurs that do not make compulsory social contributions has increased almost twofold over the past two years, according to the State Audit Office's audit of state and municipal budgets in 2017, reported LETA.

The Audit Office points out that, by evading social contributions, these persons violate the principle of solidarity and refuse to support pensioners as all other taxpayers do, while in the long term they will not be eligible to receive such state services as pensions and benefits themselves in full.

As a result, the total amount of social contributions that the State Revenue Service was supposed to receive in 2017 was short of at least EUR 48,540 to EUR 582,476, as 429 companies and individual entrepreneurs did not register for making social contributions to the state budget.

Compared to 2015, the number of companies and private entrepreneurs not making social contributions has increased almost twofold. Therefore the Audit Office believes that the Revenue Service's measures are not sufficient to ensure that all businesses that have to make social contributions actually do so.

The Revenue Service points out that its control measures have been stepped up since June 2018, and it has been working to achieve that all eligible taxpayers make social contributions.

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