New rules for excise stamps (1/27/15) (0)

02.07.2015

Passed

Cabinet Regulation No. 220, Procedures for Labelling Alcoholic Beverages and Tobacco Products with Excise Stamps, came into force on 1 June 2015. The new rules were adopted mainly to simplify the labelling of alcoholic drinks and tobacco products and ease the administrative burden on taxpayers. Read more..

Corporate tax treatment of gains arising on property sales (2/27/15) (0)

02.07.2015

Issue

Our recent analysis of the corporate income tax (CIT) treatment of real estate (RE) sales following the latest amendments to the CIT Act suggests that there is ongoing discrimination against foreign companies selling shares in a Latvian company that has mainly RE assets. This article explores some of the key differences in CIT treatment according to whether the seller is a Latvian or a foreign company and whether they sell RE or shares in an RE company. Read more..

Court finds inaccuracies in SRS approach (3/27/15) (0)

02.07.2015

Practice

During tax audits, the State Revenue Service (SRS) frequently assesses additional personal income tax (PIT) and national social insurance (NSI) contributions on lost remuneration where the SRS finds that an employee worked on Saturday, Sunday or a public holiday. The SRS does not analyse how much time it takes to complete a particular task. Lost remuneration is calculated for a full working day. Even signing waybills, filling up fuel and other brief activities are recognised as job duties.

In its ruling of December 2014 on case No. A420249614, the administrative district court pointed out some flaws in this approach, stressing the need to prove the performance and length of work after evaluating all circumstances. This ruling has been appealed and will not be heard until 2016, yet this gives us an idea of the court’s position that sufficient evidence must be gathered during a tax audit to assess additional tax liabilities. This article explores the court ruling. Read more..

Increased penalties for unfair trading (1/25/15) (0)

17.06.2015

Passed

The Prohibition of Unfair Trading Act has been amended with effect from 1 July 2015 to broaden the powers of the Consumer Rights Protection Centre (CRPC) and other associated regulatory bodies in cases of unfair trading. The amendments also raise the maximum fine for breaking the law. Read more..

VAT registration requirement (2) (2/25/15) (0)

17.06.2015

Practice

To wrap up where we left off last week, this article explores the VAT registration requirement where a taxable person with taxable supplies of goods and services not exceeding €50,000 in the last 12 months does business with non-EU persons. Read more..

 
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