Willingness to tackle shadow economy in Latvia's construction sector

Representatives of government, the tax authority and the construction industry met in Rīga July 13 to express their willingness to tackle the shadow economy by signing a Memorandum of Cooperation (MoC)

Finance Minister Dana Reizniece-Ozola, Acting tax service chief Dace Pelēkā and Partnership of Latvian Construction Entrepreneurs director Baiba Fromane were the signatories of the document to promote sustainable construction development in Latvia and fair competition between construction companies, including reducing the shadow economy, in which the building sector has always been a large part.

The memorandum provides for the transfer of data recorded in the electronic working time accounting systems of the construction industry to the State Revenue Service in order to create a single electronic working time database.

"The size of the shadow economy in the construction industry is still high, so we need to work with the industry to develop effective tools for improving the situation," said Reizniece-Ozola. 

"The memorandum signed today confirms the willingness of businesses in the construction industry to join the fight against the underground economy. I am convinced that only by cooperating can we find the best and most convenient solutions for both the entrepreneurs and the supervisory body," she added.

A similar memorandum was also signed in 2016

 

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