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Revenue Service: Tokyo City chain will not escape debt

The State Revenue Service (VID) denies the claims made by Tokyo City that it is targeting its employees with 'unwarranted' tax debt, VID director Ieva Jaunzeme told Latvian Radio September 10.

As LSM reported earlier, the restaurant chain Tokyo City has shut down due to VID's request for tax debt payment of three liquidated companies that used to operate under Tokyo City's franchise.

Tokyo City claims that the VID targeted all employees of the company, depriving them of social contributions of EUR 130,000 to offset the tax debts of third-party companies.

However, the Director-General of the VID said that this company changed the names on several occasions, but both the company's management and all 250 employees are the same and their accumulated tax debts remain and have to be paid.

Jaunzeme called on entrepreneurs to count on the fact that they would no longer be able to get rid of their debts just by changing the name. She also said that Tokyo City's employees would not be deprived of their social guarantees. Employers have to pay taxes on employees by September 23. Afterwards it would be counted as debt.

In order to recover social contributions, employees of “Tokyo City” have addressed a joint letter to the Presidents, the Prime Minister, Finance Minister, Economics Minister, head of Saeima Budget and Finance Committee and the head of the Saeima's Economic, Agricultural, Environmental and Regional Policy Committee, as well as the Latvian Free Trade Union and Latvian Employers' Confederation.

 

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