Today’s reality shows that environmental, social and governance (ESG) matters are becoming central to new corporate strategies, increasing the importance of the role ESG leaders and experts play in organisations and their governance structure. A modern ESG leader not only has to understand the interaction between the various ESG matters and their impact on the company’s lines of business but must also be able to integrate ESG in the company’s operations, inspiring the other staff to action. PwC’s latest survey “Empowered Chief Sustainability Officers” offers insights into how the role of an ESG leader has evolved over time and how ESG leaders can make a tangible difference in their companies by combining the various ESG aspects with the company’s operations, thereby helping the company transform and undertake more sustainable operations. A key finding of the survey is that organisations whose governance structure has a clearly defined role of the ESG leader are able to achieve higher indicators in sustainability areas.
The term “deposit system” is fast becoming a household name. A mandatory deposit system for single-use and reusable drinks packaging became operational on 1 February 2022 in an attempt to prevent environmental pollution. The new deposit system applies to all beverage retailers and their outlets, filling stations, public catering companies selling bottled drinks etc. This article explores the accounting treatment for a retailer who is required to install a deposit system collection point close to his outlet.
We are inviting you to listen to a PwC tax podcast about the accounting control system, about the plans of the State Revenue Service to introduce penalties for delays in submitting mandatory declarations and reports, as well as about current issues related to the company's transfer.
Council Directive 2020/284 of 18 February 2020 amending Directive 2006/112/EC as regards introducing certain requirements for payment service providers (the “Directive”) states that these providers (credit institutions, payment institutions, electronic money institutions, and post office giro payment institutions) operating in the EU will have to keep electronic records of cross-border payment data and exchange those records with a newly formed Central Electronic System of Payment information (CESOP) database as from 1 January 2024.
The European Commission has published proposals for a directive on rules to prevent shell companies from being used for tax evasion and to amend Directive 2011/16/EU on administrative cooperation. ATAD3 is the short title of the proposed directive. It mandates minimum business indicators for companies established in member states and rules on the tax regime for companies falling short of those indicators. The proposed directive would apply to all companies that are considered tax residents, including partnerships, trusts, and other legal arrangements. If adopted, the directive will come into force on 1 January 2024.
On 24 February 2022 the Court of Justice of the European Union (CJEU) ruled on a dispute over the VAT treatment of costs the customer had recharged to the supplier of goods under the contract during the warranty period. This article explores what the CJEU found and how those findings can be put into practice.
The Labour Act does not prohibit employers from hiring part-time workers under the cumulative scheme. This issue has been settled by case law, yet we can still see some part-timers employed on a cumulative basis. This article explores the potential consequences of such action.
Every two years the Ministry of Welfare prepares an informational report on the operation and development of social enterprises (SEs) for submission to the Cabinet of Ministers. The latest report on SE development, with information relevant to companies seeking SE status, was submitted on 30 March 2022. This article explores what SE status is and what aid measures it offers, as well as providing an overview of the information included in the report and of proposals for amending the SE Act.
A taxpayer assessing his transfer pricing (TP) compliance might find that a transaction with a related party is not arm’s length according to a preliminary comparability analysis. When analysing each case separately, however, we sometimes find that the taxpayer has failed to take all necessary preventive measures to mitigate TP risk. One of those measures involves assessing the need to make comparability adjustments.
The preparation of annual accounts is relevant to each company, and this process often involves making multiple changes that have a direct effect on the numerical information presented in the company’s financial statements. Accounting software mostly ensures automatic preparation of the balance sheet and the profit and loss account, yet companies, depending on their size, may have to produce a number of notes that tend to take a long time to prepare. In this article we share recommendations for accelerating the technical preparation of financial statements.
On 15 March 2022 proposals for amending the Employment Act were endorsed by the Cabinet of Ministers and submitted to Parliament for approval. The amendments are being made in order to transpose two EU directives that Latvia must pass by August 2022 and to implement the Constitutional Court’s ruling No. 2019-33-01 of 12 November 2020, which recognises that section 155(1) of the Employment Act, giving a childbirth leave entitlement to the father, is not consistent with the first sentence of the Constitution’s section 110 insofar as it offers no protection or support for a female partner of the child’s mother due to the birth of the child. This article explores key changes and how they affect workers and employers.
A foreign company planning to do business in Latvia can choose between registering a subsidiary or operating through a branch. This choice is commonly dictated by the group’s governance strategy and long-term plans in Latvia. A foreign company going for a simplified arrangement can register either a branch with the Enterprise Registry or a permanent establishment (PE) with the State Revenue Service (SRS) only for paying Latvian corporate income tax (CIT). This article outlines some CIT and accounting issues relevant to PE activities in Latvia.
The world and things keep changing, and this change is affecting the environment significantly – both positively and negatively, allowing and even forcing us to revise various processes and activities to make them consistent with the reality. These factors are also affecting transfer pricing (TP).
Today, cryptocurrency is almost a household word. “Crypto” denotes encryption provided in all modern digital currencies. Cryptocurrencies such as Bitcoin and Dogecoin have a value because people buy them for a price. The cryptocurrency can then be exchanged for goods, services or currencies issued by governments, such as the euro. This article explains how cryptocurrency trades should be booked by a company acting as broker between an individual or entity wishing to buy cryptocurrency or exchange it for money and the stock exchange where it can be bought.
