Tax Liabilities of The Board Member in Latvia: Legal-Economic Aspects

Open access

Abstract

Research purpose. To analyse the content of legal acts regulating the personal responsibility of the Member of the Board for overdue tax payments by a legal person, to carry out an analysis of the legal and economic conditions of business development.

Design/ Methodology/ Approach. The study is based on the economic and legal analysis of legal acts using descriptive, analytical, deductive and inductive methods, on the basis of which the authors draw conclusions about the responsibility of the Members of the Board, their rights and obligations towards the state and society, deliberately avoiding compulsory taxes. The research has been created as a systematic review, including searching in databases The Legal acts of the Republic of Latvia and The Commercial Register of the Republic of Latvia, specific literature, publications of expert, methodically analysing, compiling and including and excluding information.

Findings. The responsibility of the Member of the Board for losses incurred by a legal person in Latvia has so far been an insufficiently researched topic and there is a lack of publications and case summaries. This creates problems for the uniform application of the law in practice. This study will analyse current issues – the conditions for the responsibility of a Member of the Board as a natural person for the tax liabilities of a legal person, analysis of statistical data. Changes in statistical data and legislation in the study cover the period from the entry into force of changes in legislation that provide for the personal financial responsibility of the Member of the Board for a legal person’s tax debts.

Originality/Value/Practical implications. The study contributes to the analysis of the business environment in two aspects: 1) economic aspects related to changes in the legislation on the personal responsibility of the Member of the Board for corporate tax debts; 2) the legal conditions that affect the role and responsibility of the Member of the Board in a commercial company in case of damages.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Balfroid C. 2012. Liabilities of the Members of the Board of Directors of Capital Companies Under Turkish and Belgian Laws. ADMD Law Office. Available from Internet: http://www.admdlaw.com/liabilities-of-the-members-of-the-board-of-directors-of-capital-companies/#.XdWqE-gzY2w. Access: 10.10.2019.

  • Broka B. Johansen S. (2017). Juridiskā analīze un tekstu rakstīšana. Tiesu namu aģentūra.

  • Čīka I. 2017. Public-LETA. Neviena uzņēmuma valdes loceklis nav saukts pie atbildības par nodokļu parādiem. Available from Internet: https://skaties.lv/zinas/latvija/sabiedriba/neviena-uznemuma-valdes-loceklis-nav-sauktspie-atbildibas-par-nodoklu-paradiem/. Access: 07.08.2019.

  • Commercial law issues at stake Latvian and Europe: Commercial transactions Responsibility Commercial disputes. 2013. Tiesu namu aģentūra.

  • Constitutional Court of the Republic of Latvia 2015. Applicant: 12. Saeimas deputāti: Gunārs Kūtris Jānis Urbanovičs Dainis Liepiņš Inguna Sudraba Silvija Šimfa. Case No 2015-25-01. Available from Internet: http://www.satv.tiesa.gov.lv/en/cases/?case-filter-years=%5B2015%5D&case-filter-status=&case-filter-types=&case-filter-result=&searchtext=. Access: 10.08.2019.

  • Constitutional Court of the Republic of Latvia 2016. Judgement For the Republic of Latvia Riga November 15 2016in case no. 2015-25-01. Available from Internet: https://likumi.lv/ta/id/286612-par-likuma-par-nodokliemun-nodevam-60-61-un-62-panta-atbilstibu-latvijas-republikas-satversmes-91-panta-pirmajam-teikumam. Access: 10.08.2019.

  • Legal acts of the Republic of Latvia 1993 (adoption 1922). Law ‘The Constitution of the Republic of Latvia’. Available from Internet: https://likumi.lv/ta/en/en/id/57980. Access: 09.08.2019.

  • Legal acts of the Republic of Latvia 1993. Decision of the Supreme Council of the Republic of Latvia “Ratification of the International Labour Organization Conventions”. Available from Internet: https://likumi.lv/doc.php?id=63029. Access: 09.08.2019.

  • Legal acts of the Republic of Latvia 2000. Law ‘The Commercial Law’. Available from Internet: https://likumi.lv/ta/en/en/id/5490. Access: 09.08.2019.

  • Legal acts of the Republic of Latvia 2013. Law ‘On Taxes and Duties’. Available from Internet: https://likumi.lv/doc.php?id=33946. Access: 09.08.2019.

  • Legal acts of the Republic of Latvia 2015. Law ‘Insolvency Law’. Available from Internet: https://likumi.lv/ta/en/en/id/214590. Access: 09.08.2019.

  • Legal acts of the Republic of Latvia 2015. Law ‘On Taxes and Duties’. Available from Internet: https://likumi.lv/ta/en/en/id/33946. Access: 09.08.2019.

  • Legal acts of the Republic of Latvia 2017. Law ‘Law on the Prevention of Money Laundering and Terrorism Financing’. Available from Internet: https://likumi.lv/ta/en/en/id/178987. Access: 13.08.2019.

  • Madisson K. 2012. RGSL RESEARCH PAPERS NO. 7 Duties and liabilities of company directors under German and Estonian law: a comparative analysis. Available from Internet: https://www.rgsl.edu.lv/uploads/research-papers-list/16/7-karin-madisson-final.pdf. Access:10.10.2019.

  • Ministry of Finance Republic of Latvia 2019. Tax system of Latvia. Available from Internet: https://fm.gov.lv/en/s/taxes/. Access: 12.08.2019.

  • Novicāne E. 2013. Commercial law issues at stake Latvian and Europe: Commercial transactions Responsibility Commercial disputes. 2013. Latvian: Tiesu namu aģentūra 234-278pp.

  • Public administration official publisher ‘Latvijas Vēstnesis’ information platforms 2019. Skaidrojums: Likums daudzpusējās konvencijas nodokļu līgumu piemērošanai. Available from Internet: https://lvportals.lv/skaidrojumi/306721-likums-daudzpusejas-konvencijas-nodoklu-ligumu-piemerosanai-2019. Access: 12.08.2019.

  • Republic of Latvia Supreme Court Senate Department of Civil Cases February 8 2012 judgement. Available from Internet: http://www.at.gov.lv/downloadlawfile/164. Access: 05.08.2019.

  • Republic of Latvia Supreme Court Senate 2019. Judicature archive data. Available from Internet: http://www.at.gov.lv/lv/judikatura/judikaturas-nolemumu-arhivs/civillietu-departaments/klasifikators-pec-lietukategorijam/komerctiesibas/valdes-locekla-atbildiba?lawfilter=1. Access: 10.08.2019.

  • Rezevska D. Vispārējo tiesību principu nozīme un piemērošana. 2015. Latvian: Daigas Rezevskas izdevums. 176pp.

  • Saeima of the Republic of Latvia 2013. Available from Internet: http://titania.saeima.lv/LIVS11/SaeimaLIVS11.nsf/0/0EFEF951A488C4DAC2257BF700498EF2?OpenDocument. Access: 09.08.2019.

  • Saeima of the Republic of Latvia 2015. Available from Internet: http://titania.saeima.lv/LIVS12/SaeimaLIVS12.nsf/0/EB75F1CD6B5CDFF5C2257DA900470C22?OpenDocument. Access: 05.08.2019.

  • Sauka A. Putniņš T. 2018. Shadow economy in the Baltic states 2009-2017. SSE Riga Sustainable Business Center. Available from Internet: https://www.sseriga.edu/sites/default/files/2018-07/sseriga_enu_ekonomikas_indekss_2009-2017.pdf. Access: 05.08.2019.

  • State Revenue Service of the Republic of Latvia 2019. Available from Internet: https://www.vid.gov.lv/lv/nodoklu-administresana. Access: 05.08.2019.

  • Tālis J. Putninš Arnis Sauka 2015. Measuring the shadow economy using company managers. Journal of Comparative Economics: Volume 43 Issue 2 May 2015 Pages 471–490. Access: 05.08.2019.

  • Tax Foundation 2016. 2016 International Tax Competitiveness Index. Available from Internet: https://files.taxfoundation.org/20170630141955/TF-ITCI-2016.pdf. Access: 09.08.2019.

  • The Commercial Register of the Republic of Latvia 2019. Available from Internet: https://www.ur.gov.lv/en/register/. Access: 06.08.2019.

  • Zanfelde D. 2015. Public administration official publisher ‘Latvijas Vēstnesis’ information platforms 2015. Skaidrojums: Valdes locekļu atbildība par nodokļu parādiem (I). Available from Internet: https://lvportals.lv/skaidrojumi/268040-valdes-loceklu-atbildiba-par-nodoklu-paradiem-i-2015. Access: 05.08.2019.

  • Zanfelde D. 2015. Public administration official publisher ‘Latvijas Vēstnesis’ information platforms Skaidrojums: Valdes locekļu atbildība par nodokļu parādiem (II). Available from Internet: https://lvportals.lv/skaidrojumi/268040-valdes-loceklu-atbildiba-par-nodoklu-paradiem-i-2015. Access: 05.08.2019.

Search
Journal information
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 67 67 41
PDF Downloads 25 25 5