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Wednesday 18.07.2018 | Name days: Rozālija, Roze
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Wage rules violations most often associated with envelope wages

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUTo promote public awareness and improve commercial environment, honest competition and honest compliance with taxes, Latvia’s State Revenue Service intends to expand its database with new information about taxpayers, BNN was told by SRS.

It is mentioned in proposed amendments that SRS will have to start publishing information about employers that do not pay fines for violation of wage rules; employers whose employees’ monthly wages are set at the minimal amount or below the established minimum wage level in the country; taxpayers who did not submit tax declarations within specified terms, as well as individuals added to the blacklist.

«Violations of wage rules are most often associated with envelope wages. Information about employers with unpaid fines applied for violations of rules that govern the payment of wages will motivate society to evaluate use of labour taxes in certain situations based on facts related to market participants’ openness to take responsibility for the welfare of their employees. For example, consider the risks of not receiving social guarantees when working for a businessman that has wage violations on record and unpaid fines,» SRS explains.

Information about people that have outstanding administrative fines will remain accessible until fines are paid. Information about employers whose employees are paid monthly wages below or equal to the country’s minimum will be useful for potential employees when evaluating companies. This information will help them consider potential risks.

SRS also notes that data will be acquired by compiling employers’ information about their company. This data is compiled once a month.

Information about taxpayers who miss submission of tax declaration by more than fifteen days will motivate people to comply with requirements of the law and encourage businessmen to assess risks when picking potential business partners. Information will be compiled every month on the seventh and twenty sixth date, SRS explains.

«The opportunity to look at the blacklist will be useful for businessmen and potential employees. It will also help improve the business environment. Data about people included on the list will be updated every day,» BNN was told by SRS.

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