Financial Services, Latvia, Legislation, Taxation, Transport

International Internet Magazine. Baltic States news & analytics Thursday, 19.04.2018, 20:24

Dombrovskis orders to find solutions in restricting VAT scheming on auto purchases in Latvia

Alla Petrova, BC, Riga, 15.06.2012.Print version
In regard to the recent scandal involving the head of Unity's group at Saeima Dzintars Zakis, Prime Minister Valdis Dombrovskis (Unity) has ordered the Finance Ministry to find solutions in restricting value-added tax (VAT) scheming on automobile purchases.

In an interview on the Latvian Radio program ''Krustpunkta'' today, Dombrovskis said that it is one thing to condemn this specific incident, but that it is also important to see what can be done so that such things do not repeat themselves in the future.


Speaking about the actions of Zakis, the prime minister emphasized that the politician made for of an ethical mistake, not a legal one. He added that Zakis has already admitted to his mistake and promises to correct it.


As reported, Zakis told LETA earlier this week that he has met with management at his company "Datoru centrs Ltd." where he agreed to repurchase his new "Volvo XC60" SUV, thereby "resolving moral-ethical issues."


By repurchasing the car from the company, Zakis will have to pay the VAT – the root of the scandal.


The politician admitted that he now regrets that purchasing the car "created such a situation."


LETA also reported, Zakis is being suspected of scheming to avoid paying VAT in purchasing a new automobile.


According to documents made public by journalist Lato Lapsa, who also writes for the investigative news portal '''', Zakis purchased a new ''Volvo XC60'' at the beginning of the year without paying the state approximately EUR 8,880 in VAT.


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