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The Order In Which The Privatisation With Tax Debt Capitalization Method

Original Language Title: Kārtība, kādā veicama privatizācija ar nodokļu parādu kapitalizācijas metodi

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Cabinet of Ministers Regulations No. 548 in Riga in 2007 (14 august. 45. § 3) procedure for the privatisation to tax debt capitalization method is Issued in accordance with the law "on State and municipal property privatisation of object" article 2, fifth and the law "About taxes and duties" article 24, tenth, twelfth and fourteenth and article 25 of the second and third part i. General questions 1. determines the order in which the tax debt to capitalization and privatization with the debt capitalization method put the privatization of national and local corporations (hereinafter the Corporation). 2. The Corporation's privatization of tax debt capitalization methods carried out by increasing the Corporation's di share capital according to the commercial law, subject to the law on taxes and duties "while selling emerged as a result of the capitalization of State or municipal capital. 3. The Corporation's creditors is made, the capitalization of the capitalisation of the created State or local government, or State and local budget should include the principal sum of tax payments. 4. The State budget in favour of the principal sum of tax payments, capitalized State joint stock company "Privatization Agency", but in favour of the municipal budget to the principal sum of tax payments-the municipality (hereinafter referred to as the sponsoring institution of the capitalization). II. The corporation tax payment of the principal sum of the capitalization of terms 5. Capitalisation of the sponsoring institution can capitalize on such a tax payment of the principal sum: 5.1 value added tax payment of the principal sum;
5.2. enterprise income tax payment of the principal sum;
5.3. payment of the principal sum of excise duty;
5.4. the land tax payment of the principal sum;
5.5. personal income tax payment of the principal sum. 6. Simultaneously with the payment of the principal sum of the capitalization is deleted with the linked late in the principal sum and the interest. 7. Corporation tax payment of the principal sum of capitalized if: 7.1 after the capitalisation of equity capital company will be positive;
7.2. the capitalization corporations obligations of creditors will not exceed the Corporation's own capital;
7.3. the past six calendar months the corporation tax of the principal sum is increased by not more than 10 percent;
7.4. the Corporation is not a corporation and subsidiary of loans to related enterprises;
7.5. the capitalization corporations overall liquidity ratio-Division of the Corporation in respect of current assets (inventories, receivables, securities and participation kapitālo, money) to current liabilities (borrowings from credit institutions, issued by the buyer advances, trade Payables, payment of bills, debts of the Corporation and the related subsidiary corporations, other creditors, including tax and other debts)-will not be less than 1.0;
7.6. the capitalization of the equity capital company collateral ratio-equity and long term investment difference to corporations held negotiable features (production inventory, receivables, securities and participation kapitālo, cash)-will not be less than 0.1 or long-term liquidity provisioning-equity and long-term debt (borrowings from credit institutions for the purchase of fixed assets and fixed assets lease purchase (leasing)) the amounts and the difference in long-term investments-will be positive (greater than 0). 8. If the Corporation capitalized at more tax payments of the principal sum, the Corporation's compliance with the provisions laid down in point 7 of the Corporation's performance is calculated on the entire principal sum of tax payments, capitalised. III. initiation of privatisation and decision-making 9. Propose the privatization of companies with tax debts in kapitaliz tion method can Corporation. 10. the proposal for the privatization of the Corporation with tax debt capitalization method adds the following: 10.1 the Corporation statute (the original or a certified true copy of the (copy));
10.2. the national internal revenue service territorial authorities or, where the graves of the land tax, taliz relevant authorities (hereinafter referred to as the tax administration) statement of the corporation tax payment of the principal sum (annex 1);
10.3. the previous annual report and audit opinion of the jury of the annual accounts;
10.4. the balance sheet and profit and loss statements as to the current year the first date of the month in which the proposal is submitted, the tax administration;

10.5. the Corporation's liabilities and burden on the list after the current year on the first date of the month in which the proposal is submitted. 11. before the decision on the corporation tax payment in the decision-making pamatpar du capitalisation capitalization to requesting institution this rule 10.2., 10.3, 10.4 and 10.5. referred to send copies to the Ministry of finance. 12. The Ministry of Finance within 14 days of the appearance of received documents and provides tax debts against the opinion. 13. the decision of the corporation tax payment of the principal sum of the capitalization of the capitalisation of the sponsoring body shall be adopted. 14. the requesting institution of Capitalisation shall inform the tax authorities of the decision taken. 15. The tax administration by the institutions conducting the capitalization of receiving the decision stopped the capitalised payment delay calculation and capitalisation of the requesting institution shall forward this rule 10.2. referred inquiries about the corporation tax payment of the principal sum on the first date of the month in which the requesting institution's capitalization has decided on a corporation's tax payment of the principal sum of the capitalization. 16. The delay calculation is terminated in accordance with the commercial 198. the first paragraph of article 8 of the share capital increase specified in point of time, starting with the first date of the month in which the requesting institution's capitalization has decided on a corporation's tax payment of the principal sum of the capitalization. IV. Payment of the principal sum of the capitalization of the agenda 17. Capitalisation of the sponsoring institution is a corporation in the process of privatization are State or local shareholders and perform its functions in accordance with the law "on State and local government owned capital shares and kapitāls society". 18. The tax administration shall not be entitled to recover non-contentious procedure, zējamo kapital tax debts during their capitalisation in accordance with the procedure laid down in these provisions. 19. If paragraph 16 of these regulations set out in the principal sum of tax payments is not capitalised, late payment is calculated in General from the date of termination of the calculation. 20. the principal sum of tax payments, capitalized, pursuant to the European Commission of 15 December 2006, Regulation (EC) No 1998/2006 of the Treaty establishing the European Community and article 88 87. application of the de minimis aid (hereinafter referred to as Commission Regulation No 1998/2006). 21. If the principal sum of tax payments, capitalised in excess of Commission Regulation No 1998/2006 article 2, 3 and 4 above, and if the principal sum of tax payments, capitalisation is scheduled to Commission Regulation No 1998/2006 article 1, paragraph 1 of the corporation referred to in the industry, the capitalisation of the sponsoring body shall decide on the principal sum of the capitalization of tax payments, according to the European Commission only receipt of the decision, that the scheduled tax payment of the principal sum matches the capitalization of the Treaty establishing the European Community, article 87. 22. the requesting authority of the capitalization of the notification of the scheduled tax payment of the principal sum of the capitalization of the European Commission to draw up and submit to the control of business support in accordance with the procedure prescribed by law. 23. If the Corporation's performance in meeting the requirements of this regulation, requesting institution approved the capitalization of the privatisation rules, which include the rules of capitalisation, and notify the tax administration, stating the date of approval of the terms of the privatisation. 24. According to requesting authorities approved the capitalization of information provisions to privatize the Corporation develop a share capital increase and decide on the increase of the share capital in accordance with commercial law. 25. All the necessary documents relating to the Corporation's share capital increase in the commercial register, the registration authority shall submit to the Board of the corporation concerned. 26. The corporation tax payments of the principal sum is considered to be capitalized with the moment when the share capital of a capital company concerned will increase capacity in the commercial register of the registered office. V. payment of tax debt as a result of the capitalization of national or local authorities with the sale of shares in the corporation tax 27. payment of the principal sum evolved as a result of the capitalization of State or municipal capital capitalization to requesting institution sold by their assessment. 28. If the Corporation's existing members of the commercial law article 189 and its statutes in cases not used pre-emption and not buy shares, those shares sold at public auction in accordance with the rules of the auction, approved by the sponsoring institution of the capitalisation. 29. If a State or local government capital shares not sold after their assessment that the procedures specified in paragraph 28, the sponsoring institution of the capitalization is entitled to reduce the price of sale (auction starting price) by 20 percent. If the shares are not sold after the price reduction, the sponsoring institution of the capitalization can reduce the price by a further 20 percent. 30. If a State or local government capital shares not sold at the sales prices (the auction starting price) reduction in paragraph 29 of these rules in the order, the requesting institution capitalisation is right to hold the auction with a downward step. 31. the account for capital to be in dollars. Vi. Tax payment of the debts of 32. share capital increase After the Corporation registration commercial register submitted to the sponsoring institution of the capitalization of the Ministry of finance decision on tax payment of the principal sum of the capitalization (except land tax payment of the principal sum) together with the following documents: 32.1. statement of capitalized tax payment of the principal sum (annex 2);
32.2. the documents to register the mark on the Corporation's share capital increases. 33. The Ministry of Finance within 30 days of requesting institutions capitalisation document receipt with the order deletes the capitalised payment of the principal sum and the related estimated late above and fine, except land tax debts. 34. the municipality within 30 days after the share capital increase in the commercial register with the registration of the order deletes the capitalised payment of land tax and the related principal sum calculated above and late penalty. 35. Information on the deleted tax debt capitalization to requesting institution shall be published in the newspaper "journal". VII. Closing questions 36. Be declared unenforceable: 36.1. Cabinet of Ministers of 3 June 1997, Regulation No 200 "regulations on the State budget in favour of the tax payments, the principal sum of the capitalization of" (Latvian journal, 1997, no. 138;/59.nr.; 58 of 1998, 1999, 2000, 446./451.nr.;/172.nr.; 171 2001, 105 no; 2003; 2004, nr. 93 68 no);
36.2. The Cabinet of Ministers of 29 July 1997, Regulation No 265 "regulations on the State budget in favour of the tax payments, the principal sum of the capitalization of the companies privatized local government" (Latvian journal, 1997, no. 194; 1998/59.nr.; 1999, 58, 446./451.nr., 171./172.nr.; 2000; 2001; 2003 105 no, no. 93; 2004, nr. 68);
36.3. The Cabinet of Ministers of 11 May 1999, no. 177, the provisions of the "rules on property tax and individual income tax payment of the principal sum of the capitalization of" (Latvian journal, 1999, 159-160., 446./451.nr., 171./172.nr.; 2000; 2003; 2004, nr. 93 68 no);
36.4. The Cabinet of Ministers of 11 May 1999, the provisions of no. 168 "rules on the payment of the principal sum of the low capitalisation, and delete" (Latvian journal, 1999, 155-158, 446./451.nr.; 2003; 2004, nr. 93 68 no). 37. the national or municipal capital that formed the principal sum of the capitalization of tax payments, leading up to the date of entry into force of rules and not sold, the requesting institution sells the capitalization of these rules. Prime Minister a. Halloween economic Minister j. Malcolm annex 1 Cabinet 14 august 2007 by Regulation No 548 of corporations privatizējam statement of tax debts Economy Minister j. Malcolm annex 2 Cabinet 14 august 2007 by Regulation No 548 of the privatized corporations certificate of tax payment the principal sum capitalized economic Minister j. Malcolm