bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 19.09.2019 | Name days: Verners, Muntis
LatviaLatvia

Expert: for tax reform to yield results, it should have been given three years to develop

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUFor it to yield tangible results, the tax reform should have been given at least three years to develop, says financial and legal affairs consultant, Latvian Tax Consultant Association’s chairman Ainis Dābols.

He is confident that any tax reform’s introduction period should be longer than what Latvia has now.

«I was present at the meeting with Finance Minister Dana Reizniece-Ozola. She said there is no more room for delays – elections are around the corner. On top of that, she said there is a number of European Commission requirements and other reasons why it should be done this year. Perhaps she is right. Nevertheless, but if the effect from the reform would have been better if it had been in development longer,» said Dābols.

According to him, it would have been better if the reform had been in development for at least three years. «It is easy for politicians to say – let’s introduce some new rules and then see how things go. I would rather the State Revenue Service not tell me out of the blue in 2020 that I owe something from 2018. Who would pay the tax debt for me – the prime minister?» said the tax consultant.

He believes it would be best to have a transition period so that businesses would not be applied with full-sized sanctions for problems with SRS. Unfortunately, because there is no transition period, businesses and private persons can expect some unpleasant surprises and even penalties.

«The new system could bring about situations under which it may turn out that you as a private person did not pay PIT in full. Under the current situation you can submit a declaration with receipts for justified expenses and receive back part of your paid taxes. Under the new system, however, it is quite possible that you will be the one to pay the state budget,» said Dābols.

He continues: «In 2019, when you submit your declaration for 2018, you might accidentally find out that you owe the country an amount that is rather substantial for an average working person. If you are the kind of person who carefully plans their family’s budget, it will come as a very unpleasant surprise.»

«This is why I am in favour for the reform to work at least several years before we can model situations and decide on different new laws to accommodate them,» he adds.

Ref: 225.109.109.5283


Leave a reply

Sigulda municipality turns to police over infection cases in kindergartens

Sigulda municipality has turned to State Police to investigate the link between last week’s uncovered intestinal infection cases, including four infection cases involving salmonella bacteria, as confirmed by the municipality.

Latvian Saeima supports tighter mutual cooperation with USA in rights protection

On Thursday, 19 September, Saeima supported in the second and final reading a legislative draft, approving the September 2004 agreement for tighter cooperation between the Republic of Latvia and the United States of America for protection of rights.

Candidate: FCMC team should learn to work substantially, not formally

The team of Latvia’s Finance and Capital Market Commission should learn to work substantially, not formally, said the candidate for the post of chief of FCMC and Citadele Bank board member Santa Purgaile at a press –conference on Thursday, 19 September.

Lithuanian analysts on Russia-Belarus unification plan: actions louder than words

The announcement by Belarus and Russia this week of their entering into an economic confederacy by 2022 did not go unnoticed in Vilnius, which is courting the idea of recharging its dusty relations with Minsk. Is it just the Slavic countries’ new attempt to fulfil the endeavour?

Russia holds traditional holy man, who sought to drive out Putin

A Siberian shaman, who was on his way to Moscow, to «banish» Russian President Vladimir Putin, has been detained, Russian police has stated.

Costs for delivery of printed press to be compensated in Latvia

On Thursday, 19 September, Latvia’s Saeima supported in the second and final reading amendments to the Postal Law, which provide delivery of printed press under subscription in 2020 under the same rules and conditions that are in force now.

Saeima says state of emergency in Riga’s waste management sector is justified

Latvia’s Saeima has approved the decision made by the Cabinet of Ministers on declaring a state of emergency in Riga’s waste management sector.

Lithuanian PM’s lymhoma treatment met with solidarity by Health Minister

Lithuanian Health Minister has shaved his head expressing solidarity with Prime Minister Saulius Skvernelis, who is being treated against cancer.

Finance and Capital Market Commission applies a considerable fine on PrivatBank

Latvia’s Finance and Capital Market Commission has applied a fine of EUR 1.019 million on AS PrivatBank for violation of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, as confirmed by FCMC Communication Office.

Estonia to pay tens of thousands to municipalities for military training grounds

300 000 euros – such is the sum the Estonian Defence Ministry has undertaken to pay every year to nine municipalities in the territory of which training grounds of the Estonian Defence forces are located.

Competition Council: Riga City Council takes no responsibility for its own mess

«It is unfortunate that Riga City Council has involved others in resolving its own negligent problems without taking any responsibility. Competition Council has issued multiple warnings to make Riga City Council to prepare and prevent the very situation we are in now,» says Competition Council chairperson Skaidrīte Ābrama in regards to the state of emergency declared in Riga.

In Fukushima negligence case, company executives acquitted

A court in Japan has acquitted in a case of alleged negligence as to the 2011 Fukushima nuclear disaster three executives of a power company.

Millions intended for National Acoustic Concert Hall to be spent for other needs

The EUR 23 million allocated by European structure funds for the construction of the National Acoustic Concert Hall, and which were planned to be used for the reinforcement of AB Dam, have been divided for other needs, said Latvia’s Culture Minister Nauris Puntulis.

Finland: 12 days left to UK to submit Brexit amendments

Anti Rinne, the Prime Minister of the presiding country of the European Union, has warned the United Kingdom that it has 12 days to submit proposals to amend the existing withdrawal agreement.

Latvian minister promises to control municipalities’ loans more strictly

The loans taken by municipal companies from the State Chancellery for construction of different infrastructure projects will be evaluated and controlled more carefully, promised Latvia’s Environment Protection and Regional Development Minister Juris Pūce at a press-conference on Wednesday, 18 September.

Police to investigate intestinal infection cases in Sigulda’s kindergartens

On Tuesday, 17 September, Latvia’s State Police commenced a criminal process over the intestinal infection cases observed at kindergartens in Sigulda.

New MEPs express support to EU stance on Brexit in resolution

The new composition of the European Parliament has passed a resolution pledging to reject any withdrawal agreement of the United Kingdom without a backstop and readiness to support a withdrawal extension if the UK requests it.

Estonia wants quicker tobacco price hike and small brewery expansion

Estonian Finance Ministry has tabled proposals to increase excise tax on tobacco products and to allow small breweries to expand, while keeping tax deductions.

State Audit bashes Latvian municipalities for irresponsible loans and massive projects

The practice when many Latvian municipalities borrow money from the state budget to finance excessive and unnecessary construction projects demonstrates short-term thinking and irresponsible attitude towards their future costs, as concluded by State Audit.

Estonian tech firms agree to become climate neutral by 2030

33 Estonian computer technology firms have sealed a Green Pledge at Tallinn Digital Summit, promising to change their operations to a completely environmentally sustainable basis by 2030.

Latvian government allocates considerable finances for ministries’ priorities

The government has decided to allocate an additional amount of EUR 173.0 million from the 2020 budget to finance priorities of ministries and independent institutions.

Lithuanian farmers ditch milk farming due to low milk price

In Lithuania, milk purchase prices are so low that small and medium-sized farms have found it unfeasible to operate and 12% of all milk farms have seized to exist over the past year, LRT reports.

Latvian prime minister urges audit of catering services at education institutions

Following the news about intestinal infection cases in Sigulda and the violations uncovered by the Food and Veterinary Service at nearly all education institutions there, an inspection will be proposed to check the quality of catering services at other education institutions, said Prime Minister Krišjānis Kariņš.

Whistleblower Snowden’s new book targeted by U.S. lawsuit

American whistleblower Edward Snowden has released a new book and on the day of its publication the U.S. government has filed a lawsuit against the book to «recover all proceeds» from its sales.

Latvian government greenlights continuation of territorial reform

In spite of objections from many municipalities, Latvia’s government decided on Tuesday, 17 September, to support Environment Protection and Regional Development Ministry to reduce the number of existing municipalities from 119 to 36.