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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. 986 in Riga in 2008 (2 December. No 86 10) the order in which the privatisation with 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 method carried out by increasing the share capital of a capital company under 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 debt capitalization is carried out, the capitalisation of established State, local, 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, where 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. real estate 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 capital;
7.3. the past six calendar months preceding the month of application the first date the corporation tax of the principal sum increased by no 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, funds) have not less than 0.1 or long-term liquidity provisioning indicator – 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 between long-term investment – will be positive (greater than 0). 8. If the Corporation capitalized at more tax payments of the principal sum, the Corporation's compliance with this provision a corporation referred to in paragraph 7 of the performance indicators for the calculation, taking into account all the capitalised payment of the principal sum total of taxes. 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. balance sheet and the profit and loss statement as of the current year the first date of the month in which the proposal is submitted, the tax administration;
10.2. the obligations of the Corporation and the burden on the list by position to the month of the current year the first date on which the proposal is submitted. 11. the requesting authority of the capitalization of week following suggestion sa privatisation of sampling for corporations with tax debt capitalization method state revenue service territorial institution (hereinafter referred to as the tax administration) will send a request to issue the certificate of corporation tax payment of the principal sum (annex 1). 12. in paragraph 11 of these rules that a certificate issued by the tax administration within a week after receipt of the request. If capitalized real estate taxes, the local Government shall prepare a statement within a week of this provision a document referred to in paragraph 10. 13. the requesting institution before the capitalization decision on corporations tax payments the principal sum of the capitalization of the 10 and 12 of the rules referred to in paragraph 1, copies of documents sent to the Finance Ministry. 14. The Ministry of Finance within 14 days of the appearance of received documents and provides tax debts against the opinion. 15. the decision of the corporation tax payment of the principal sum of the capitalization of the capitalisation of the sponsoring body shall be adopted. 16. the requesting authority of the capitalization within three working days after the decision of the corporation tax payment of the principal sum capitalisation shall inform the tax administration. 17. The tax administration of sponsoring bodies by the capitalisation of receipt of the decision or after the decision of the municipal corporation tax payment of the principal sum of the capitalization of the capitalised decision-making stops late tax payments calculation. Capitalisation of tax administration requesting institution shall send the certificate of corporation tax payment of the principal sum on the status the month after the first date on which the requesting institution's capitalization has decided on the corporation tax payment of the principal sum of the capitalization. Statement of the Corporation of the municipality of the principal sum of tax payments, prepares itself. 18. The delay calculation is terminated in accordance with article 198 of the commercial law of the first paragraph of point 8, 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 tax capitalization 19. 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". 20. The tax administration and the municipality shall not be entitled to recover non-contentious procedure kapitalizējamo tax debts during their capitalisation in accordance with the procedure laid down in these provisions. 21. If paragraph 18 of these regulations set out in the principal sum of tax payments is not capitalised, late of the General order of calculation of the date of termination of the calculation. 22. 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). 23. 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. 24. 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. 25. 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. 26. 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. 27. 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. 28. 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 29. 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. 30. 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. 31. where national or local shares not sold after their assessment that the procedures specified in paragraph 30, the capitalization is sponsoring institution the right 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. 32. If a State or local government capital shares not sold at the sales prices (the auction starting price) reduction in paragraph 31 of these rules in the order, the requesting institution the capitalization is entitled to hold a repeat auction of the downward step. 33. Settlement of the capital taken in LCY. Vi. Tax payment of the debts of 34. increase the share capital of a capital company By registration in the commercial register shall submit a sponsoring institution in the capitalization of the Ministry of finance decision on tax payment of the principal sum of the capitalization (except real estate tax payment of the principal sum) together with the following documents: 34.1. a statement of the principal sum of capitalized tax payments (annex 2);
21.3. the documents (with commercial grade) of the share capital of a capital company. 35. The Ministry of Finance within 30 days after this Regulation referred to in paragraph 34 of document receipt with the order deletes the capitalised payment of the principal sum and the related estimated late above and fine, except real property tax debts. 36. the municipality within 30 days after the share capital increase in the commercial register with the registration of the order deletes capitalised real estate tax payment of the principal sum and calculated above and late penalty. 37. Information about the deleted tax debts in kapitaliz sponsoring institution of information published in the newspaper "journal". VII. Closing questions 38. Be declared unenforceable for Min three cabinet 14 august 2007 Regulation No 548 "order, the privatisation with tax debt capitalization method" (Latvian journal, 2007, no. 133). 39. 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 i. Godmanis economic Minister, the Minister of Justice g. Smith annex 1 Cabinet December 2, 2008. Regulations No 986 economic Minister, the Minister of Justice g. Smith annex 2 Cabinet December 2, 2008. Regulations No 986 economic Minister, the Minister of Justice g. Smith