Revenue Service discovers furlough benefit violations

The State Revenue Service has discovered two cases with furloughed employees receiving benefits still continuing to show up to work, the tax service said April 7.

Since late March, employers can apply for furlough benefits to reduce the impact of the changes the novel Covid-19 virus has brought upon the Latvian economy. 

In all, the tax service has carried out 105 checks from April 2 to April 5. Individuals and board members can be fined up to €1,500 and relieved of duties upon discovery of violations.

One of the companies involved has said its prepared to repay the benefit, the service said.

In another case, the employer asked the employee to share the benefits they received with themselves. 

Furlough benefits are paid to employees out of work due to the economic strain caused by the Covid-19 outbreak. They are to receive of 75% from the previous wage, with the payout capped at €700 a month. 

According to the tax service, by now the average benefit is at €251.71. A total of €1.75m has been paid to 6,820 employees in 1,386 companies. 

It is expected that about 73,000 employees will be compensated during the outbreak, to the tune of €102 million

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