bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 17.01.2018 | Name days: Tenis, Dravis
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

McDonald’s to use unrecycled packaging for 7 more years

World’s largest catering chain McDonalds has set the aim of ensuring that by 2025 all its packaging would be from either from recycled or renewable materials, which would be an increase current proportion of a half.

Saeima speaker: Judicial Affairs Council’s work should be more apparent

Work performed by the Judicial Affairs Council should be made more apparent, said Saeima speaker Ināra Mūrniece during her meeting with Supreme Court chairman Ivars Bičkovičs.

Mass protests in Greece do not hold back new bailout reforms

The parliament of Greece has adopted a large set of reforms pushed for by international creditors in return for more bailout money, despite approximately 20 000 people protesting outside the parliament and brief clashes with riot police breaking out.

Foster families in Latvia to receive larger benefits

Municipal administrations have a duty to pay larger benefits for child care when children are put in foster families, Latvian Welfare Ministry reports.

Government plans to improve anti-doping measures in Latvia

During a meeting of the Cabinet of Ministers, a legislative draft developed by Healthcare Ministry on adding changes to the Sports Law for the improvement the country’s anti-doping measures was approved.

Only 12% of workers know their organization’s IT security policy

Businesses around the world still suffer from a catastrophically low level of awareness for IT matters, according to a study performed by Kaspersky Lab and B2B International.

Parents let children on ice in spite of temporary restriction

On Sunday, 14 January, officers of Riga Municipal Police observed with video-recording equipment how two people were skating on the surface of Victory Park’s pond. Because it is banned for people to remain on ice of large bodies of water in Riga, officers were sent in.

Czech President to be determined in duel between Zeman and Drahoš

In the Czech presidential election, no candidate has garnered a half of the votes and its result will be determined in a run-off between the current eursceptic President and a pro-European academic.

Aldaris: non-alcoholic beer market in Latvia grew 9% in 2017

Aldaris concluded 2017 with a significant increase in their non-alcoholic beer category of products. Demand for non-alcoholic beer has increased across all of Latvia – market growth was 9% in 2017, as reported by the company’s representatives.

Politician reports meddling with e-health system; prime minister parries

Last Thursday, 11 January, e-health system ‘suffered malfunctions’, which suggests that it may have been hacked, Saeima’s Social and Employment Matters Committee head Aija Barča mentioned in an interview to Latvijas Radio.

Pension fund cautious about 500-million-euro bridge project to Saaremaa

Commenting on the idea that Estonian pension funds could invest into the ambitious project of building a bridge from mainland Estonia to the country’s largest island, Swedish Swedbank has expressed caution.

Study: more than half of Latvians do not trust other people

52% of Latvian residents believe most people cannot be trusted. Only 5% of residents are ready to trust their fellow man. Less than one-fifth of Latvian residents trust decision-makers, according to results of a study performed by SKDS.

Economic expert: 2018 expected to be good for investors

«This year promises to be good for investors, because global economy is on a rise and profits of businesses have a tendency to grow,» says Luminor economic expert Gints Belēvičs.

Estonia counts more residents for 3rd consecutive year

Registering an increase in the Estonian population for the third consecutive year, Estonian statisticians have estimated that the population has increased by 3,070 people to 1,318,700 residents. They have also warned that this is preliminary data, which could still change considerably as unregistered immigration has not been included.

Russian school struck by teenager knife attack

In a knife attack on a school in Perm, Russia, eleven children and a teacher have suffered injuries.

NA: city council has to consider new partnership approach for Agenskalns market

Riga City Council members have to decide what is more important for Agenskalns market’s development: rate or quality. There are two options: force a closed market development with an auction of long-term lease or consider public private partnership option. Such a proposal was submitted to Riga City Council’s City Property Committee by the faction of the National Alliance.

Romania Prime Minister changed, second since June

Romanian head of government Mihai Tudose has lost the support of his own Social Democratic Party becoming the second Romanian Prime Minister to lose the seat in seven months.

Moderately rapid export rise recorded in Latvia in January-November period

Compared with the previous year’s period, a moderately rapid export growth was recorded in Latvia in the January-November period of 2017 when compared with other EU member states, according to data published by Eurostat.

Japanese R&I upgrades Latvia’s credit rating to A-

Japanese Rating and Investment Information, Inc. (R&I) has announced its decision to upgrade Latvia’s rating from BBB+ to A- with a stable outlook, as reported by Latvian State Treasury.

KVV Liepājas metalurgs to be auctioned off

Insolvency administrator to the bankrupt KVV Liepājas metalurgs Guntars Koris has decided to sell property owned by the company at an auction, as confirmed by the administrator’s representative Dzintars Hmieļevskis.

Port turnover of Latvia’s neighbours up 9%; Latvia suffers 2% decline

«Total turnover of Russian ports has grown to 787 million tonnes, according to data from Russian Federal Agency for Marine and River Transport. Compared with 2016, stevedores of Latvia’s neighbouring countries serviced 7.2% more liquid cargoes, with their volume reaching 414 million tonnes. The total volume of bulk cargoes, on the other hand, has increased by 11.1%, and now reaches 373 million tonnes,» as reported by Dienas Bizness journalist Egons Mudulis.

Greek transport strike seeks to safeguard right to call strikes

A scope of Greek public transport services drew to a halt on the opening day of the week as public transport workers and air traffic controllers engaged in a strike to protest against what they see as attempts to limit they right to hold strikes.

Olaine prison to have a new training centre for correctional service personnel

On 15th and 16th January, Justice Ministry will organize a meeting for the Norwegian finance instrument’s 2014-2021 planning period. During this period, officials will discuss the progress of the Improved correctional services system. As part of this programme, it is planned to build a new training centre in Olaine prison for correctional service personnel, as reported by the ministry.

Estonia's new road tax payment criticised by road hauliers

As the new road tax has entered into force in Estonia in 2018, the country's Association of Estonian International Road Carriers has commented after the first two weeks of its implementation that a key problem is that the state has not granted truck drivers the possibility to pay the road tax at gas stations in addition to the existing way paying the tax online.

Marriott International hotel network enters Latvia’s market

Albert Hotel will be closed down for renovations on Monday, 15 January. It will be reopened in 2019 as AC Hotel Riga part of Marriorr Group. The new Marriott hotel in Latvia will be managed by Legendhotels, as BNN was told by the company.

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: