Financial Services, Latvia, Legislation, Markets and Companies, Taxation

Tendem Neman has suspended operations since February 18, 2016. In 2014, Tendem Neman generated EUR 38.86 million in turnover and made EUR 222,164 profit, according to information from Firmas.lv.

As at May 1, 2016, the aggregate debt of Latvia’s 100 biggest tax debtors was EUR 295.5 million.

There were two individuals and eight companies among the ten biggest tax debtors.

M4U company was the second biggest tax debtor in May with EUR 32.326 million in unpaid taxes. According to Firmas.lv business database, M4U in 2014 was the second largest company of the electronic sector with a turnover of EUR 33.02 million. The company’s operations were halted last year, its sole owner is Russian citizen Artyom Voropayev.

Individual Jevgenijs Jakovlevs was the third biggest tax debtor, with EUR 19.16 million and AVT Nafta was forth with a EUR 9.285 million tax debt.

Further down the list was individual Vadims Mitrofanovs with a tax debt of EUR 8.973 million, Krasainie Lejumi metalworking company with EUR 8.963 million and Ormus with EUR 8.924 million.

Eco Tyre Baltics with EUR 8.1 million tax debt was in eighth place, Baltic Lumber Products was ninth with EUR 5.82 million, and Future Vision was tenth with EUR 5.43 million in unpaid taxes.

At the beginning of May, the tax debts of 31 biggest debtors exceeded EUR 2 million, while 84 debtors’ owed the state more than EUR 1 million each.

The total amount of overdue payments to the Latvian state budget administrated by the State Revenue Service reached EUR 1.454 billion as at May 1, 2016, according to the information provided by the Latvian tax authority.

Tax debts deemed actually uncollectible made up EUR 914.58 million, or 62.89% of the total tax debt.

Tax debts to the central government basic budget stood at EUR 969.45 million and tax debts to local government budgets came to EUR 315.12 million, while overdue social insurance contributions equaled EUR 169.71 million.

Compared to January 1, 2016, the total tax debt has increased by 2.7% over the four months.

The largest proportion of overdue taxes in early February this year comprised current debts – 72.61% or EUR 1.056 billion.

The second largest part consists of suspended debts (22.69% or EUR 329.91 million), and the third part is debts with extended maturity (4.71% or EUR 68.47 million).

Debts deemed collectible were worth EUR 1.046 billion in early May this year, including EUR 131.22 million declared actually collectible and EUR 914.58 million declared actually uncollectible. Out of the actually uncollectible debts, the debtors owing EUR 898.012 million do not have any money or property.