Corporate tax treatment of zero-balance cash pool (2/38/20) (0)

17.09.2020

Practice

The corporate income tax (CIT) treatment of cash pools is a grey area when it comes to measuring the company’s taxable base. The State Revenue Service (SRS) has still to publish guidance on various situations potentially facing cash pool members in order to make the tax authority’s opinion on this issue crystal clear. This article explores how the CIT treatment of zero-balance cash pools is interpreted in an advance tax ruling the SRS has issued to a PwC client. Read more..

Impact of Covid-19 on accounting for leases (3/38/20) (0)

17.09.2020

Practice

The Covid-19 pandemic has brought significant changes to the business environment, including temporary rent concessions. As a result, amendments to International Financial Reporting Standard 16 Leases (“IFRS 16”), which were adopted on 28 May 2020 and could be applied to financial statements for 2020, are awaiting EU approval. Read more..

Administrative liability for tax violations (1/37/20) (0)

11.09.2020

Passed

Having governed matters of administrative liability, including tax-related, for almost 35 years, the Latvian Code of Administrative Offences ceased to apply on 1 July 2020 and was replaced by the Administrative Liability Act (“ALA”) as part of Latvia’s sweeping administrative liability reform. ALA is not merely an improved version of the old Code – the structure and rules of the new Act are substantially different, so the first glance might cause some confusion. This article explains where to look for descriptions of various offences and what administrative liability is prescribed for tax violations, as well as giving an overview of other related matters. Read more..

Transactions with related parties: shareholder consent (2/37/20) (0)

11.09.2020

Practice

This explores conditions under which a company’s transactions with related parties require shareholder consent under the Commercial Code (“CC”). Read more..

Car used under employment contract (3/37/20) (0)

11.09.2020

Practice

Company employees often use their private cars for business purposes. This article explores issues to consider and tax implications of this use being included in employment contracts. Read more..