Bad debt provisioning: corporate tax treatment (1/12/19)

21.03.2019
Open article
This year the Ministry of Finance (MOF) intends to work on expanding the tax legislation dealing with the CIT treatment of provisioning for bad and doubtful debts. We can expect comment on provisioning as a percentage of the underlying debt and on provisioning according to IFRS 9. This article explores some other issues that have received comment from the MOF relating to receivables. Read more..
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Construction loan: enough to support investment for tax purposes? (2/12/19) (0)

21.03.2019

Practice

The Administrative Division of the Supreme Court analysed whether the amount an individual borrowed to build a house (in conjunction with other evidence) is a sufficient basis for amounts invested in real estate (RE) and allows a personal income tax (PIT) deduction on the capital gain. This article explores the findings made by the court. Read more..

Societies’ obligation to pay corporate tax (3/12/19) (0)

21.03.2019

Practice

Each corporate trader is liable to pay corporate income tax (CIT), except for cases prescribed by the CIT Act, but societies are covered by exceptions. In statutory cases, the State Revenue Service (SRS) may examine a society’s economic activity, find it unlawful, and charge CIT. Read more..

New grounds for VAT deregistration (1/11/19) (0)

18.03.2019

Draft

The Cabinet of Ministers is to debate proposals for amending the VAT Act to give the State Revenue Service (SRS) more powers to deregister traders for VAT purposes. The proposals also lay down tighter conditions for obtaining a permit to apply a special VAT scheme on imports, as well as prescribing a taxable person’s liability for failure to provide the SRS with information about the conduct of a transaction. Traders that change their board improperly or fail to conduct any economic activity will face VAT deregistration. Read more..

Brexit: corporate tax implications (2/11/19) (0)

18.03.2019

Practice

There are about ten days left until the UK presumably leaves the EU. An event of such a magnitude is bound to have tax implications. Clearly, VAT and customs are the most affected taxes, yet the corporate income tax (CIT) treatment will also change. This article explores how Brexit will affect a few situations we have picked for review. Read more..

Personal Income Tax Act to be amended (3/11/19) (0)

18.03.2019

Draft

Proposals for amending the Personal Income Tax (PIT) Act, which the Cabinet of Ministers debated on 26 February 2019, are to be decided by Parliament soon. This article explores proposals for extending the time limits by which certain taxpayer categories are allowed to pay their overdue taxes and for exempting PIT on income that residents will gain from Latvia’s fiscal receipts lottery. Read more..

 

 
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