bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 18.08.2017 | Name days: Liene, Helēna, Elena, Ellena, Liena
LatviaLatvia

Economic Diary of Latvia. Watch out – finks!

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThis week, the Enterprise Register and Justice Ministry launched a campaign titled ‘Businessman, sort out your papers!’ The goal of this campaign is to inform business people that it will become much easier to re-register company capital from lats to euro.

The two institutions have developed amendments to the Law on Commerce. The Cabinet of Minister promptly approved these amendments on March 31st. Changes particularly apply to LTDs that have only one owner. There are approximately 74.5 thousand of such companies in Latvia. They form 80% of all registered subjects that carry out commercial activity.

The problem the Enterprise Register and Justice Ministry are trying to solve may seem not serious at first. Regardless, it causes a lot of busywork. The thing is that capitals in lats were stated in round numbers, so authorities decided to preserve the same rule for euro. However, conversion from lats to euro presents fractional numbers.

It is necessary to come up with a way to handle decimals, because entrepreneurs do not know what to do: how far to round number in order to maintain proportions.

Watch out – finks!

It became known this week that the State Revenue Service often uses information provided by finks in its work.

As noted by the head of SRS Inara Petersone in her interview to Latvijas Radio, the organization often receives information regarding tax avoiders from residents – more than 5,000 reports had been received in 2014. People provide detailed reports and information provided in them greatly assists SRS.

SRS plans to publish information regarding taxes paid by Latvian companies every year. Taxes paid for employees of companies will be emphasized. According to SRS, an open database that contains information about most companies will allow authorities to quickly compile expenses of companies.

According to Petersone, Latvia is quickly headed to full openness. People want to know everything – income of officials, teachers and businessmen. Publication of information about taxes paid by companies will be used as another tool to help combat shadow economy, which still has a strong presence in Latvia.

Authorities in other countries also often employ finks to gather sensitive information. This especially applies to USA. In 2006, amendments were added to American tax legislation that greatly increased reward for tax informants: to 15-30% of money transferred to the state budget from unpaid tax. This served to tremendously increase activity of tax informants.

«Report your friend and you will become a millionaire,» – this was the approximate motto presented by Turkish Finance Ministry several years ago. If the reported information is confirmed later on, the informant receives 10% of the unpaid tax amount.

In France, tax inspectors actively use anonymous letters, information provided by neighbours and informants. Other countries are starting to take notice of the informant culture, including Latvia.

A meeting in the tops

Although this event does not hold any economic value, it is worth mentioning nonetheless, as the economic effect from it may come back in the near future. An informal meeting of the Council of Ministers of Baltic States took place in Vilnius this Friday, April 10th. Officials of Baltic States discussed matters of security, energy and transport together.

Officials also discussed preparations for the Eastern Partnership Summit, which is planned to be held in Riga May 21-22.

This is where it gets interesting. It is planned to discuss the matter of providing Ukraine a visa-free regime starting January 1st, 2016.

Ukraine launched a simplified visa regime wit Europe on July 1st, 2013. Now Kyiv is trying to establish a completely visa-free regime. Ukrainian authorities hope the decision regarding a visa-free regime will be made on the upcoming summit in Riga.

Informal meetings of heads of state are held once a year in one of the Baltic States. The last meeting was held in Tallinn in 2014. The prime ministers of Baltic States discussed Rail Baltica. As it can be concluded, such informal meetings more often than not lead to real action.

Ref: 017.109.109.8464


Leave a reply

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.

Islamic State terrorist group takes responsibility for Barcelona attack

The recent terrorist attack in Barcelona, in which a shuttle bus rammed a crowd of people on La Rambla, killing 13 and injuring at least 100, has become this week’s topic.

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Brivais vilnis: nearly all fish processing companies are experiencing losses

Currently nearly all fish processing companies in Latvia are experiencing major or minor losses, says Brivais vilnis chairman Arnols Babris.

American helicopters to perform low-altitude flights within Latvia’s airspace

U.S. Air Force Brigade’s Task Force Phoenix helicopters, which are stationed in Latvia as part of Atlantic Resolve operation, will be performing low-altitude flights from 16:00 to 18:00 from Lielvarde to Dobele on Friday, 18 August.

Healthcare Ministry’s state secretary Karlis Ketners may be replaced

Latvian Healthcare Ministry may replace its state secretary Karlis Ketners. It is possible he will be transferred to work at Finance Ministry, as reported by LTV.

Suspects in Europe's insecticide egg scandal before Dutch court

In the Netherlands, two men have been in court in relation to the scandal of eggs containing banned insecticide that has caused an EU-wide health scare and cost millions of euros of damages.

Indian national with fake documents apprehended on Latvian border

An Indian citizen travelling from Moscow on a bus was caught at Terehovo border control point in Latvia for presenting officers a fake EU family member’s resident card. No criminal process was launched. The person returned to the country he was travelling from.

Latvijas dzelzceļš will not have to pay dividends from last year’s profits

The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

Latvian citizenship provided to 103 people

The Cabinet of Ministers has issued an order to provide Latvian citizenship to 103 people through naturalization.

Estonian Inbank's profits reach EUR 5.7 million in six months

Estonian financial services' provided Inbank made a profit of 5.7 million euros in the first half of 2017, which is a 429.4% increase compared to the respective period in 2016.

Agriculture Ministry invites residents to sign up for measures to support fisheries

From 21 August onward, Rural Support Service plans to start accepting applications for projects to receive support from European Maritime and Fisheries Fund’s action plan for development of fisheries in 2014-2020 as part of projects Innovation, Productive Investments in Aquaculture and Fishing and Aquaculture project processing.

Estonia seeks to improve reputation of state as employer

As the Estonian Ministry of Finance wishes to boost the reputation and brand of the Baltic country's public sector, it has announced a procurement tender aimed at preparing an action plan for reaching these goals.