Tax violations to carry stiffer penalties in Latvia

The Latvian Finance Ministry has completed work on a set of amendments to the Law on Taxes and Duties, which stipulate harsher penalties for tax violations, the LETA newswire reported April 14.

The amendments propose adding a new section to the law that will deal with administrative violations of tax laws, and the authorities that will oversee applying administrative fines.

The amendments stipulate that tax evasion and settlement of payments equivalent thereto, or concealing profit or other taxable income will carry a fine of EUR 125 to EUR 2,000. Private individuals who do not register with the Taxpayer Register will be issued a warning or a fine of EUR 50 to EUR 210, while legal entities - EUR 50 to EUR 350.

Payments under the table will carry a fine of EUR 140 to EUR 2,000. Private individuals or companies' board members who fail to observe restrictions imposed by the State Revenue Service will be fined EUR 140 to EUR 2,000.

Failing to report cash transactions will carry a fine equal to 3-5 percent of the amount of the transaction. Private individuals who are required to use cash registers but do not do so will be fined EUR 140 to EUR 350, while legal entities - EUR 140 to EUR 1,400.

There will also be fines for late filing of tax returns, ranging from EUR 25 to EUR 700, depending on how late a tax return is submitted.

Persons who fail to report the Revenue Service about suspicious transactions will face a fine of up to EUR 2,00, while legal entities - a fine of up to EUR 5,000.

According to the amendments, the Revenue Service will be the authority in charge of fining individuals and entities that fail to observe the provisions of the law.

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