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Wednesday 20.03.2019 | Name days: Made, Irbe
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Risk analysis has pointed towards serious violations at Gandrs store for some time

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUInformation regarding the double pay system at Saeima deputy Askolds Kļaviņš’s owned store Gandrs was not a surprise for the State Revenue Service – risk analysis results have pointed towards possible serious violations in this company for some time, SRS explains.

Adding that institution is not allowed to disclose detailed information regarding ongoing inspections and their results, SRS did mention that ‘certain tax administration and control measures were commenced at the beginning of summer. Tax audit still continues in the company in question. Naturally, we will pay attention to reverse VAT schemes in this company,’ SRS reports.

In total, SRS admits it is unpleasantly surprised about the company’s neglectful and irresponsible position towards the state, its employees and their rights.

«People have to understand that non-payment of any kind of tax, especially wage tax, not only reduces revenue for the state budget but also impacts every employee of the company, denying them social guarantees,» SRS explains.

Union of Greens and Farmers member Askoldam Kļaviņš’s owned store Gandrs not only offers potential employees a double pay system, which creates suspicion about a possible envelope wage system there, but also teaches ways to purchase products while circumventing VAT payment, as reported by LTV programme Aizliegtais paņēmiens.

The programme determined using an experiment that the official pay of employees in that store differs from what people there can actually earn. In a conversation with a representative of the programme posing as a potential employee, Gandrs board member Laura Klūga explained that the gross wage that would be written in the employee’s contract would be 2.60 EUR/h. However, ‘on hands’ the employee would be paid 2.70 EUR/h.

Klūga explained that this is done because taxes in Latvia «are not well-defined and we [Latvia] are in the lead among Baltic States in terms of the highest taxes’. She mentioned that the company searches for ways to attract employees, ‘however paying taxes is the most expensive and least efficient way […]».

In addition, this company offers another bonus to its employees – Gandrs allows its employees to purchase expensive goods at a cheaper price by not paying VAT.

«It is possible to purchase all kinds of products cheaper through the company. This includes telephones, construction materials, etc. If you need something, speak up. We will consider and come up with a good solution. Gandrs has the best lawyers, economists, IT specialists and other experts. […] If we form for the company, first of all, many of those products have reverse VAT, which means no VAT,» Klūga told the programme’s representative.

In the conversation with the programme, Kļaviņš claimed to know nothing of such a practice in the company.


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