Amendments To The Law "about Taxes And Duties"

Original Language Title: Grozījumi likumā "Par nodokļiem un nodevām"

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Read the untranslated law here: https://www.vestnesis.lv/op/2012/109.1


The Saeima has adopted and the President issued the following law: amendments to the law "About taxes and duties" make law "About taxes and duties" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1995, nr. 7; 1996, no. 15; 1997, no. 24; 1998, 2, 18, 22, 24 no; 1999; 2000, no. 24, no. 11; 2001, 3, 8, 12 no, 2, 2002; 22 no, 2, 6; 2003. , 8, 15, 22 No.; 2004, no. 9; in 2005, 2., no. 11; 2006, 1, 9, 13, 20, 24 no; 2007, 3., 7., no. 12; 2008, 1., 6., no. 13; 2009, 2, 11, 13, 15, no; Latvian journal, 2009, 200, 205. no; 2010, 91, 101, 131, 151, 157.., 178, 183, 206. no; 2011, 68, 80, 85, 169. no; 2012, 24, 50, 56 no). the following amendments: 1. Supplement article 1 with 29 and 30 paragraph by the following: "29) — indeed, the price of the goods or services (value) that the transaction between the parties that the law" On enterprise income tax "be considered as related companies, one of which is a foreign company; 30) the risk address — address of the taxable person, if there is at least one of the following conditions: (a)) the State revenue service has detected that the taxable person not established in the legal department at the address, if any, address economic activity cannot take place, b) taxpayer or company registered only members or only officials declared place of residence address are social institutions that persons without fixed residence or a crisis situation in persons provides opportunities for short stay whether the prison address. " 2. To make article 14 8.1 part as follows: "(81) the application of this article in the eighth paragraph of part 4, the taxpayer is considered to be a person who has been granted and which regularly (more than once during the tax period) uses the power to conclude agreements for its physical, legal or on behalf of another person, that is, is created or established one of: 1) legislation on tax free and low taxation countries and areas to the countries or territories; 2) States with which the Republic of Latvia is not closed, and the entry into force of an international treaty on the avoidance of double taxation and the prevention of fiscal evasion, except for Member States of the European Union. " 3. in article 15: to supplement the first part of paragraph 13 by the following: ' 13) in the cases specified in this Act to comply with the prohibition to meet its payment obligations or to do business with the taxpayer for which the State revenue service stopped economic activity, with the exception of article 34.1 of this law in the tenth subparagraph. "; replace the third subparagraph of paragraph 5, the words "three thousand" with the word "thousand"; Supplement third with 5.1 paragraph by the following: "51) this Act and the provisions of the cabinet order for tax administration information Declaration of the previous year with natural persons, which, according to the tax laws governing not recorded economic activity, cash transactions, unless the amount of the transaction in one operation with each counterparty exceeds 2000 lats." 4. To supplement the law with article 15.2 the following: ' article 15.2. The taxpayer's obligation to provide information on transactions with related parties (1) the requirement provided for in this article shall be based on the transaction (price) compliance with market price (value) refers to the law "on enterprise income tax" those taxpayers — residents and permanent representations, which deals with: 1) of persons that the law "On enterprise income tax" is regarded as a related foreign companies; 2) related persons with taxpayer consists of the law "on enterprise income tax" group of companies; 3) commercial companies or cooperatives, which are exempt from corporate income tax, or used in the laws of the Republic of Latvia in certain corporate income tax rebates; 4) article 1 of this law 18 of those natural persons; 5) other companies or individuals, if they are, are created or established free and low taxation countries or territories. (2) the taxpayer referred to in the first subparagraph in cases where its net turnover in the financial year exceeds one million dollars and the amount of the transaction exceeds 10 000 LVL, transaction prices (values) in compliance with the market price (value), specify the following information: 1) taxpayer's sectors of activity: a brief general description of the taxpayer's last year, which include: (a) information about the industry) (trends, relevant characteristics) where a taxpayer works b) their economic and legal analysis of the factors which affect the taxpayer's goods and services prices, c) environmental characteristics of business concerned (competition, marketing opportunities and other market factors), d) description of intangible investment, which could have a potential impact on transactions between taxable persons and the referred to in the first paragraph of the participants the transaction price (value), e) for information on the transactions carried out functions , take risks and used (those involved) assets; 2) taxpayer and a related group of persons organizational and legal structure, and their reciprocal links; 3) for information on the taxpayer's business strategy, market strategy, product (service) distribution, sales strategy and management strategies, which may affect the pricing of the transactions with related parties; 4) related to the person operating the explanatory information — processes associated persons of members of the Group functions, the risks associated with them and the assets used in the transactions, as well as the roles and responsibilities of participants, information on taxpayer actions, which resulted in the reorganization of the related parties is transferred or of which the economic activity is taken over functions, assets or risks of the market price, the appropriate consideration; 5 a description of the subject of the transaction) that applies to the transaction in the first part of this article, the persons referred to in; 6) contract dealings with the first part of this article, the persons referred to in; 7) taxpayer's prediction of the future according to the concluded transaction with a related party; 8) selected the method to determine the transaction price (value) compliance with market price (value); 9) depending on the the method chosen — comparable to an unrelated merchant financial analysis, or an unrelated merchant comparable transaction price (value) and apply the appropriate transaction price (value) analysis; 10) other documents justifying the application of the price (value) in transactions with the first part of this article, the persons referred to in previous contracts, the cost of supporting documents, the company's Board of Directors, members, shareholders, Board meeting decisions. (3) in the second part of the information referred to in the taxpayer shall be kept for a period of five years and submitted to the tax authority within one month after receipt of the request. (4) If the taxable person referred to in the second subparagraph of article information is not submitted within the time limit set, the tax administration determines the market price (value) by the information in its possession. " 5. Supplement with chapter IV 16.1 article as follows: "article 16.1. Taxpayers and tax administrations agreed on the transaction the market price (value) (1) of the Act referred to in article 15.2 taxpayer when doing or starting business with the person that the law "On enterprise income tax" is linked to foreign companies, is entitled to propose to enter into a preliminary agreement with the tax authorities about the market price (value) for a particular transaction or type of transaction, if a transaction or proposed transaction value with related foreign persons exceeds one million dollars a year. (2) if the taxpayer has acted according to the agreement concluded the previous conditions and its economic activity does not change that, contrary to the previous agreement, the tax authorities have no right to tax audit (audit) to specify a particular transaction or type of transaction set market price (value). (3) Cabinet of Ministers determines the order in which the tax administration concludes an earlier agreement with the taxpayer about the market price (value) for a particular transaction or type of transaction, as well as charges of the previous agreement and the order in which it is charged. The fee for the previous agreement shall not be exceeded by the average costs involved. " 6. in article 18, first paragraph: Add to paragraph 10, the words "as well as whether the transfer will be checked for compliance with the deal to market price (value)"; Add to part with 21 as follows: "21) keep the risk address list and regularly provide this information to the Registrar of companies. The procedures are provided in the State revenue service and register in the mutual exchange of information on risks, as well as the addresses of persons who have applied for registration in enterprise register of the Republic of Latvia held registers and having their registered office or residence of the declared address of the Act referred to in article 1 the term "risk address", and the regularity of information to be determined by the interdepartmental agreement. "
7. Article 23: Supplement to article 1.1 part as follows: "(11) the tax authorities when checking conformity of the transfer market price (value), tax audit (audit) defines or clarifies the tax declaration of ingredients and amounts to be taxable income (loss) tax returns according to the tax laws governing, imposes a penalty of five years after the legislation in a particular time, with the exception of this law 16.1 article referred to in the second subparagraph."; Add to the introductory part of paragraph 3.1, first sentence, the words "or of the taxpayer to which the transfer is made"; to supplement the 3.1 part with point 4 as follows: "4) from the date of transfer within the examination of taxpayer information is requested until the date of receipt of the response." 8. Article 30: in the first paragraph, replace "3000" with the number "1000" and the number "10 000" with the number "5000"; replace the second paragraph, the number "10 000" with the number "5000"; to complement the fourth paragraph by the words "with the exception of the seventh article of the cases set out in part"; to supplement the article with the seventh subparagraph by the following: "(7) taxable persons carrying out economic activity, the cabinet order until tax year following the February 1, declare all previous year cash transactions carried out with natural persons, which, according to the tax laws governing not the economic activity should be recorded, if the amount of the transaction in one operation with each counterparty exceeds 2000 lats. This does not apply to cash transactions (paid winnings), for which the taxpayer is the State revenue service submitted a notification in accordance with the law "on personal income tax" article 11.1 in part. " 9. Express article 34.1 (first instance) by the following: ' article 34.1. Suspension of business law cases (1) the State revenue service has the right to suspend the tax payer (or its departments, in which the violation occurred) economic activity, if it is determined that at least one of the following offences: 1) to the taxpayer to employ persons who do not have a written contract of employment, and the number of such persons is 50 per cent or more, but not less than three persons from the test object (belonging to the taxpayer or its use in the territory and premises of the where the economic activity is carried out or which are associated with revenue generating to another natural or legal person owned or in use in an area or room) persons employed; 2) taxpayer has avoided a tax or duty evasion; 3) taxpayer uses the cash register, cash register system, specialized equipment and installations of software or accounting information systems, which has changed the software or perform other activities that create the opportunity to hide or reduce the taxes and fees the taxable object; 4) taxpayer employed person paid income, which is not shown in the accounting records and the State revenue service submitted a report on the State social insurance payments from workers ' income, on personal income tax and business risk duty in the reference month, or employ more than one person that has not concluded a written contract of employment; 5) taxpayer is prevented which was the basis for its exclusion from the State revenue service with value added tax register of taxable persons. (2) the State revenue service within five working days after the first paragraph of this article of the infringement finding in writing warn taxpayers about the suspension of economic activity, except where it is established in the first part of the infringement referred to in paragraph 1. (3) within five working days after the first part of this article referred to in paragraph 1, the findings of the State revenue service shall decide on the tax payer (or its departments, in which the violation occurred) the suspension of economic activity. (4) the State revenue service stops the taxpayer's economic activity, making a decision within five working days, without warning, if it is established from the first paragraph of this article and any infringements of the following circumstances: 1) taxpayer's address matches the address of risk; 2) the State revenue service has information that the commercial register as a taxpayer's sole participant or the only officer of the finding at the moment is given by such person, the purpose of which was not to make a commercial business and data without the person's consent, were used for the purpose of the commercial register entry or which the Member or officer only grew at the request of third parties; 3) State revenue service has information that the taxpayer an individual Member or individual officials was not designed to do business; 4) taxpayer's legal address specified or declared place of residence address is not registered in the State Register of addresses; 5) taxpayer by the tax administration's announcement of the test repeatedly during the year is not reachable on the specified registered address or the declared place of residence. (5) the State revenue service shall decide on the tax payer (or its departments, in which the violation occurred) the suspension of economic activity during the 15 days following that referred to in the second paragraph of article written warning notification, if the taxpayer has not prevented breaches specified therein. (6) the State revenue service within three working days after the decision on the taxpayer's economic suspension making do the following: 1) send messages about the taxpayer's economic suspension the Registrar of companies, if the stop register journal or the commercial register record taxable economic activities; 2) decide on the ban marks the recording in the register of immovable property or other public register; 3) suspended the State revenue service issued a special permit (license); 4) submitted to ministries, authorities and other institutions necessarily enforceable claim to stop taxpayer issued a special permit (licence) carry on business; 5) gives financial institutions and credit institutions necessarily enforceable orders for tax billing operation partial or full suspension; 6) sealed or sealed tax unit or other place of business, if their positions allow such action, and carry out other proposed legislation that the taxpayer's business operation of restrictive measures. (7) If the State revenue service stop the fiscal operation of the unit in which the violation occurred, it takes the sixth part of this article 6. (8) the decision for the taxpayer (or its departments, in which the violation occurred) operating the suspension shall enter into force by the time of its adoption. The State revenue service within three working days after the decision on its homepage on the internet publish information about the taxpayer's economic suspension. (9) the taxable person to whom the State revenue service stopped economic activity, forbidden to discharge the payment obligations and to do business, with the exception of the 10th article of the cases provided for in part. The taxpayer is prohibited to do business with the taxpayer for which the State revenue service stopped economic activity, from the day when the commercial or company opened a registry log entry on the taxpayer's economic suspension, or the taxpayer, which the State revenue service registered as operating contractor, from the day when the relevant information was published by the State revenue service home page on the internet. (10) the State revenue service must allow to complete the deal, also perform the payment obligations, if the taxpayer submits a submission with a request to allow you to complete the transaction and the State revenue service finds that the transaction is not performed for the removal of the goods seized or hidden, or other income sources or otherwise avoid the tax liability. The State revenue service granted this permit within three working days after the receipt of the necessary information from the taxpayer. The State revenue service shall immediately revoke the authorisation, if the tax administration process, it gained the support of information that shows the true circumstances of the transaction concealment. If permission is granted, revoked the statutory responsibility for operating the stop limit, failure to apply from the date when the taxpayer stopped economic activity. (11) if the taxpayer is doing business with the taxpayer for which the State revenue service stopped economic activity, and the transaction or the transaction amount exceeds the total of 1000 lats, costs the taxpayer incurred as a result of such action, shall not be considered costs associated with economic activity. This condition does not apply to transactions carried out before the State revenue service's decision on the taxpayer's economic suspension takes effect. (12) if the taxable person contests the decision on suspension of economic activity, the State revenue service examine the taxpayer's application and within five working days after receipt of the application, shall take a decision. The application shall not suspend the execution of the contested decision. (13) the decision on the appeal against the suspension of economic activity does not stop its execution. " 10. Add to article 21.3 of the law with the following: "article 21.3. The taxpayer stopped operating (1) where a taxpayer has prevented any decision on economic the suspension of these irregularities and declared himself the State revenue service after an inspection one day restores the taxpayer's economic activity. The decision for the taxpayer's economic renewal shall take effect with the time of its adoption. (2) the State revenue service within one working day after the decision on the economic activity of the taxable person making the restore perform the following activities: 1) send messages about the taxpayer's economic renewal to the Registrar of companies, if renewed business register register record held by taxable economic activities; 2) decide on the repeal of prohibition marks in the real property register or other public register; 3) restores the State revenue service suspended special permits (licences); 4) reference under this law, the sixth subparagraph of article 21.2 (4) and (5) and go to the requests submitted by Ordinance; 5) atplomb and remove seal of tax departments and in other economic activities, as well as repealing other taxable economic activity. " 11. transitional provisions be supplemented with 142, 143 and 144.. paragraph by the following: "142. Article 1 of this law, Amendment 29 Article 15 paragraph 5, third paragraph, and article 15, third subparagraph of 5.1 points, 15.2, 16.1 article, amendment of this law in relation to article 18, first paragraph, point 10, supplement article 23 amendment of part 1.1 in respect of article 23 of the Act 3.1 part of the first sentence of the introductory paragraph of the replenishment 23. Article 3.1 of part 4, the amendment of article 30 in the first, second, fourth and seventh part of article 30 shall enter into force on January 1, 2013. 143. The Cabinet of Ministers to 2012 December 30 of this law shall be issued in the third subparagraph of article 16.1, as well as the seventh subparagraph of article 30 of the proposed legislation. 144. This law, article 15 the third paragraph 5.1 and article 30 in the seventh part of the cash transactions reporting obligation, owed, starting with 2014 and each year declared the previous year in cash transactions are carried out. "
The Parliament adopted the law of June 21, 2012.
The President a. Smith in 2012 on July 12.