Financial Services, Latvia, Legislation, Taxation

16 searches were carried out in Riga last week, putting an end to the group's illegal activities, which was evading taxes laundering money, causing LVL 1.3 million in losses to the state budget, LETA was informed by the State Revenue Service.

One of the organizers was previously a suspect in the Finance Police's criminal process over tax evasion and money laundering.

More than ten real and around 20 fictitious companies were involved in the group's scheme, involved in managing premises and buildings, construction and setting up electrical installations. The group organized fictitious chains of company transactions to evade paying taxes, launder money, get cash for under-the-table payments and purchase cars for personal needs.

To reduce the amount of the value added tax rate paid to the state budget and legalize their illegal income, the scheme's "clients" included non-existent transactions with fictitious companies in their VAT reports.