To facilitate detection of criminal activities in the field of state revenues from 1st January 2017 the State Revenue Service started receiving information of suspicious transactions in the field of taxation not only from credit institutions and persons providing payment services, as well as from other subjects of the Law on the Prevention of Money Laundering and Terrorism Financing (hereinafter – NILLTFN).
Alterations introduced to the Law on Taxes and Fees establish that all of the subjects of NILLTFN from January of this year must report to the service the information of the corresponding signs of suspicious transactions as set out in Section 22.2 of the the Law on Taxes and Fees in the field of taxation, if concluded by persons, whose country of residence (registration) is the Republic of Latvia.
The purpose of amendments to the legislation is to facilitate detection of violations of the law, which might result in malicious reduction of the size of the tax payment to the public budget or to increase the amount of tax repayable from the public budget.
The expanded circle of informants now encompasses:
– tax consultants,
– hired accountants,
– chartered auditors,
– commercial companies of chartered auditors,
– sworn notaries,
– sworn advocates,
– and other independent persons engaged in provision of legal services.
But these informants are not all yet. Persons engaged as agents or brokers in real estate transactions, organizers of lotteries and games of chance, persons engaged in provision of encashment services, legal entities and natural persons engaged in vehicle marketing, as well as in mediation in the said transactions are to share their vague suspicions with the taxation authority in Latvia.
The same applies to those, who are engaged in marketing precious metals, gemstones and articles from them.
By the way, information of suspicious transactions in the field of taxation yet as from 1st April last year has been received by the State Revenue Service from credit institutions and persons providing payment services. By now there are the first results: within the period of time from April to the end of December SRS received from credit institutions and persons providing payment services 262 notifications of suspicious transactions in the field of taxation, which included information of 4473 transactions.
It’s safe to assume that the flow of ‘suspicious’ information arriving for verification at SRS would sharply grow this year.