Financial Services, Latvia, Legislation, Markets and Companies
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Wednesday, 24.04.2024, 01:02
Latvian FinMin against banning offshore companies from bidding for public contracts
The Latvian
parliament on February 1 passed in the final reading the legislative amendments
banning companies that are registered in low-tax countries, or the so-called
offshore countries, from taking part in public tenders in Latvia.
The Finance Ministry, the Procurement Monitoring
Bureau and legal experts reviewed the parliament's decision and concluded that
it was inconsistent with the international law.
"One cannot impose restrictions on business
activities of a company based solely on its domicile," Reizniece-Ozola
said, adding that it would be different in case of tax evasion or money
laundering but the country of incorporation alone cannot be the reason for declaring
a company ineligible in public tenders.
The Finance Ministry is working on a report explaining
its argumentation that it will ask Latvian President Raimonds Vejonis to
consider before promulgating the bill.
"If the President promulgated the law, there will
be litigations because those legislative amendments amount to discriminatory
treatment of companies," the finance minister said.
As reported, Unity and the Union of Greens and Farmers
support the proposal by their partner in the ruling coalition, the National
Alliance, to ban offshore companies from participation in public tenders in
Latvia but are concerned about the proposal's compliance with the EU directive.
The Latvian Chamber of Industry and Commerce supports
the proposal to ban offshore companies and Latvian companies controlled by
offshore companies from participation in public tenders.