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Latvia’s State Revenue Service (VID) is seeking €911,623 in damages in a criminal case, alleging a company deliberately avoided paying taxes. The case underscores the government’s efforts to combat tax evasion and protect public funds.
Prosecutors allege that the defendant, even as serving as a board member with full representation rights for the company, organized and oversaw its financial and economic activities between July 20, 2018, and June 2, 2022. As part of his responsibilities, he was accountable for ensuring the company’s tax obligations were met.
According to prosecutors, the defendant prepared and submitted the company’s tax declarations to the VID. However, despite knowing the company had sufficient funds to cover its tax liabilities, he allegedly diverted those funds for personal loans.
This action, prosecutors claim, was a deliberate attempt to evade tax payments. Specifically, the company allegedly failed to pay €748,292 in value-added tax (VAT), €89,382 in mandatory state social insurance contributions, €29,273 in individual income tax, €54 in state fees for entrepreneurial risk, €18,733 in corporate income tax, and €27,360 in excise tax, resulting in total damages of €913,097 to the state.
The defendant has denied any wrongdoing and disputes the claim for damages, according to prosecutors.
In addition to the criminal case against the individual, authorities have initiated proceedings to apply coercive measures against the legal entity that allegedly benefited from the tax evasion scheme.
