bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 19.02.2018 | Name days: Zane, Zuzanna
LatviaLatvia

Economic Diary of Latvia. Repay your debts with your private property

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThis week, the Latvian Saeima finally approved amendments to the Taxes and Duties Law. In accordance with these amendments, management boards of commercial enterprises will have to cover their companies’ unpaid tax debts with their private property.

Latvian State Revenue Service is now authorized to launch tax debt collection procedures if cases fall under the following categories:

-the amount of the debt is equal to 50 minimum wages (EUR 16,00 at the moment and EUR 18,000 in 2015);

-the taxpayer has been informed of the decision to launch a tax recovery process;

-it has been uncovered that the taxpayer had alienated assets of the company in favour of some third party after a tax debt had accumulated;

-the taxpayer who performs economic activities has not fulfilled requirements stated in the Insolvency Law and has not submitted an application requesting insolvency.

SRS will not charge tax debts from management board members if they can prove there had been objective reasons for not declaring insolvency.

Commercial entrepreneurs are seriously concerned about this new form of regulation.

«Politicians have approved the regulations without listening to the Justice Ministry and Saeima Legal Affairs Office, who had openly stated that this regulation goes against the definition of Limited Liability Company and, possibly, the Constitution of the Republic of Latvia,» – says the Chairman of Latvian Chamber for Commerce and Industry Janis Endzins.

He has turned to President Andris Berzins with a request to veto these amendments. In support of his protest, entrepreneurs voice the following reasons:

-this norm breaches Section 91 and Section 105 of the Constitution of the Republic of Latvia and possibly several other sections (Saeima Legal Affairs Office had previously noted this as well);

-this norm will have a negative impact on Latvia’s business environment and the development of the country’s national economy, which will only decrease state budget revenue and increase the number of cases of raiderism;

-this mechanism can be easily avoided (by appointing third parties as management board members). This would force SRS to waste resources trying to collect debts from formal management board members, not the actual beneficiaries;

-this norm will have a negative impact on people’s desire to start a business and take charge over a company;

-the reason why this mechanism is being created is to avoid using the established mechanisms by simply increasing the authority of monitoring authorities;

-there are many things that have been left out, including significant legal risks once mentioned by the Saeima Legal Affairs Office and Justice Ministry.

Up for some financial stability

Residents who are in poor physical condition find it difficult to find motivation to make savings, as stated by results of Nordea Money School’s survey.

In general, 41% of the population admits they feel safe in terms of finances and certain about the state of their private budget.

It is interesting because residents who are physically active are far more confident about their finances than other residents.

Residents who are in poor shape more often mentioned problems with their financial state – 25% of these residents consider their financial state to be lacking and one-third believe their financial state is bad.

Buyers lie in wait, real estate becomes cheaper

Prices continued to decline for apartment prices in Riga this November. At the same time, price decline has been noted in nearly all micro-districts in Riga, as noted by Arco Real Estate Board member Maris Laukaleis.

Compared to October 2013, prices have reduced 0.2% in November 2014.

With that, the average price on apartments reduced to EUR 638 per 1 m2 in November. The average price level was 60.6% lower than that of July 1st, 2007, when the average price of an apartment reached its historically highest mark of EUR 1,620 1 m2.

«The waiting strategy of potential buyers, which is the cause of the decline of prices, is explained with uncertainty in regard to the introduction of the settled-down keys principle and the tension in Ukraine. It is clear that the general trends on the market are dictated by the recently adopted amendments to the Immigration Law, which has already reduced the number of deals in the apartments segment in Riga,» – explains Laukaleis.

The highest prices for apartments noted in November 2014 were registered in Teika, where the average price per 1 m2 reduced to EUR 799 in November. The lowest prices were noted in Bolderaja – EUR 458 per 1 m2.

Everything is great in our kingdom

According to the Latvian Automobile Association, a total of 13,690 new cars have been registered in Latvia in the past eleven months of 2014, which is 16% more than there were registered in the same period of 2013.

The most popular car this year in Latvia is Skoda Yeti – 492 newly-registered cars in the past eleven months. Skoda Octavia is also one of the most popular cars in Latvia this year – seventh place and 281 registrations.

The second place in terms of popularity is help by the Japanese Nissan Quashqai (496), followed by Volkswagen Golf (438).

The TOP 10 ends with Toyota RAV4 (403), Toyota Auris (243) and Peugeout 3008 (320).

Ref: 017.109.109.2272


Leave a reply

Week in Lithuania. Lithuania celebrating centennial of statehood

Leaders of European countries gathered in Vilnius on Friday, February 16, to celebrate the 100-year anniversary of restored statehood, and festive events were taking place in many cities and towns of Lithuania.

BNN summary of the week: minister threatened with dismissal; ABLV Bank scandal

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Court; Problem; Decline; Commentary; Future; Proposal

SRS uncovered violations in 169 inspections at catering companies last year

In 2017, the State Revenue Service (SRS) performed a total of 989 inspections at 212 catering companies. This includes 182 thematic inspections for 125 taxpayers. Violations were uncovered in 169 inspections. The most common violation was manipulation with cash registers, according to information published by SRS.

Russian tourists often decide to celebrate International Women’s Day in Riga

To satisfy growing demand for bus tickets from Russia to Latvia for the week when 8 March is celebrated, Lux Express plans to organize additional buses between St Petersburg and Riga.

FCMC to investigate ABLV Bank again; no operational restrictions applied to the bank

Latvia’s Finance and Capital Market Commission (FCMC) has plans to perform an additional investigation at ABLV Bank in the next couple of weeks, says the commission’s manager Pēters Putniņš, adding that no operational restrictions have been applied to the bank so far.

Study: overall sense of happiness in Latvia is record-low

60% of Latvian residents feel happy. Although this is a good index, there has been a general decline of the sense of happiness, according to a study performed by Amigo mobile network operator and SKDS to assess the level of happiness of Latvian residents.

Raid reveals some taxi drivers in Riga do not have valid driver’s license

A raid was performed by the State Revenue Service and Riga Municipal Police to check taxi service providers in the capital. Authorities uncovered a total of 81 violations in 48 cases, BNN was informed by SRS.

Estonia sea ice crash: last missing body found

Nine days after a van with six people inside drove onto the ice of the Baltic Sea in south-western Estonia, the body of the last victim has been found.

Delna invites immediate investigation of claims about ABLV Bank’s money laundering schemes

The decision by US Finance Ministry’s Financial Crimes Enforcement Network (FinCEN) to apply sanctions against ABLV Bank for involvement in money laundering schemes and bribery of officials was not a surprise. It is a sign for acute need to continue improving investigative and supervisory institutions’ ability to prevent money laundering through Latvia, as noted by Delna – Society for Openness.

Estonian income tax should be simplified, parties believe

The existing income tax scheme in Estonia should be simplified, three parties in the Estonian Riigikogu find, but there are differences in opinion as to maintaining the current state budget income. Meanwhile, the opposition Reform Party has voiced backing for an annual tax-free income of 6,000 a year to every earner.

Baltics propose increasing member states’ contributions to EU budget after Brexit

Latvia, Lithuania and Estonia invite European Union member states to increase contributions to the EU budget after 2020 in order to make sure available funds do not drop after UK’s exit.

Instagram obeys Russian internet censor to block content on corruption allegations

In the atmosphere of the March Russian presidential election, social network Instagram has submitted to the demands of Russia's internet censorship body and blocked in the country content with corruption claims voiced by Russian opposition figure Alexei Navalny.

Teenager charged with U.S. school shooting has confessed

A day after a tragic school shooting in Florida, the U.S., where 17 people have been killed, the suspect 19-year-old Nicolas Cruz has confessed to police.

Snowfall expected for weekends in Latvia; sky to become clear again next week

On Friday, 16 February, weather in Latvia will be dictated by a small cyclone, which will approach the country from Sweden. Because of that, the sky will be cloudy and snowfall will come to many areas. The cyclone will not be strong. With that, wind speed will remain relatively slow, as reported by Latvian State Environment, Geology and Meteorology Centre.

How will Lithuania look like in another 100 years?

In order to tell it, one needs to know the past and the presence. Yet the predicting how the centennial celebrations-engulfed Lithuania will look like in another hundred years is not easy at all even for political and business pundits.

Minister: Latvian authorities will perform an investigation about FinCEN report

Responsible Latvian institutions will perform an investigation in relation to the report from US Finance Ministry’s Financial Crimes Enforcement Network (FinCEN). In this report, the institution accuses ABLV Bank of bribing Latvian officials, says Foreign Affairs Minister Edgars Rinkēvičs.

Party calls for extraordinary meeting of Riga City Council’s Transport Committee

To invite officials to explain the illegal decision in regards to the mutual agreement between Rīgas satiksme’s and Rīgas mikroautobusu satiksme’s, political party For Latvia’s Development urges opposition factions of Riga City Council to call an extraordinary meeting of the Transport Committee, as confirmed by the party.

Meteorologists warn about -25° C frost in Latvia in March

Global Forecast System predicts a possibility of -25° C frost in Latvia’s eastern parts at the beginning of March.

Latvian residents remain dissatisfied with their families’ financial state

For several years in a row the majority of Latvian residents remain dissatisfied with their families’ financial state, according to results of Baltic International Bank Latvian Barometer.

Latvia’s cosmetics market – 160 million euros

Latvia’s cosmetics market is worth approximately EUR 160 million. Similar to Europe, skin and hair care products are the most popular ones. The smallest market proportion is occupied by decorative cosmetics, according to data from Latvian Cosmetic Manufacturers Association (LCMA).

RB Rail CEO says interference «from above» has been in line with the law so far

We have seen interference «from above» in RB Rail’s activities. The law was not breached, however. With that, there was no need to report anything to law enforcement institutions, RB Rail CEO Baiba Rubesa told Ir magazine.

15 Estonians die in flu period from complications

The number flu patients in Estonia is currently increasing. So far during this year's flu season, 15 people have passed away with flue-related complications.

Economy Minister asked to fix increasing electricity bills; parties threaten with dismissal

Latvian Economy Minister Arvils Ašeradens has to fix the mistakes that have caused electricity bills to increase, said chairman of Free Trade Union Confederation of Latvia Egils Baldzēns in an interview to 900 seconds programme of LNT.

Third of beer consumed in Estonia in 2017 bought in Vidzeme, Estonian factory breweries evaluate

Saku and A. Le Coq, two largest beer makers in Estonia have not published their exact sales numbers for the last year, but have been quick in stating that about one third of all beer drunk in Estonia was purchased in Latvia.

U.S. hit by another mass shooting at school

In the U.S., a high school has been attacked in the state of Florida, where gunshots have taken the lives of 17 people. Local police has detained a suspect – a 19-year-old man, who had been expelled from the same school.

Newest comments