If a company finds it is governed by the Anti Money Laundering and Counter Terrorism and Proliferation Financing (AML/CTPF) Act, it has two priority steps to take: register as an entity subject to the Act after stating a type of activities governed by the Act, and appoint an officer responsible for ensuring compliance with the Act’s requirements under section 10. This appointment must be reported to the relevant supervisory authority such as the State Revenue Service or the Financial and Capital Markets Commission.
In late 2021 the government debated and approved the Justice Ministry’s proposals for amending the Commerce Act. Although the amendments have yet to be endorsed by Parliament, they might come into force on 1 July 2023. The most important proposals relate to disclosure requirements for a public limited company’s shareholders.
Entering into contracts for services is an inevitable part of business, but this cannot be undertaken without fully assessing inherent risks. Over the years the courts have developed sufficient case law allowing us to make conclusions about how they approach situations that involve assessing the nature of a legal relationship to determine whether the contract is one for services or one of employment. This article explores some of the case law that prescribes the conduct of parties entering into either type of contract.
A litigation and dispute resolution lawyer’s clients often prefer to avoid arguing with the authorities in the hope of building a relationship or performing an obligation, even one that has no basis in law. From a strategy perspective it is sometimes useful to concede a small point in order to secure a bigger gain, such as time or progress. And unreasonably complaining right and left is not considered good style. However, you should not be afraid to speak up where this is necessary and to engage in a meaningful discussion with the authorities when it makes sense. The government is not a small child who will take offence and seek revenge at the first opportunity. Below is a story of successful communication with two fairly bureaucratic government agencies: the State Revenue Service and the Citizenship and Migration Office.
A share premium represents an amount that is paid in addition to the nominal value of a share but is not credited to share capital. The face value rarely represents the true value, so a share premium helps the company set a fair payment for its shares and reflect their true value in various share dealings.
During its lifetime a company often has to adapt to new circumstances arising from its internal changes or external changes such as legislative amendments. The first thing that comes to mind when hearing the word “reorganisation” is change, something different, something being transformed, rebuilt, or improved. And that makes sense because a reorganisation means substantial changes in the company that are commonly undertaken to simplify or change the group structure, to expand its business, or, conversely, to split off lines of business.
The increasing role associations play in society and certain industries raises questions about data the associations use in their activities and communications, which is often obtained from their members. We should not forget that any association is governed by the Competition Act and that associations and their members, just like any market participant, are subject to its requirements, including restrictions on how commercially sensitive information may be transferred, gathered, and made available to association members. What rules do the members have to follow when it comes to disclosing financial data to their association?
Employment offences commonly lead to an administrative penalty, yet employers with no practical experience of the National Labour Office’s administrative offence proceedings do not always have a clear picture of how a penalty is determined and what principles apply. This article explores the main stages of a penalty and ways to challenge it.
Latvia has offered a temporary residence permit (TRP) in exchange for investment for many years. A number of businessmen and investors found this to be an attractive proposition, as it allowed them to successfully start or continue their business in Latvia and freely travel across Europe. As is often the case, however, the devil is in the details. The question of taxes can ruin your business plan and form a basis for cancelling your TRP.
Companies often provide various intragroup services for optimisation purposes. Whether such companies are governed by the Anti Money Laundering and Counter Terrorism and Proliferation Financing Act (the “Act”) is a question that has always come under a great deal of scrutiny. Effective from 12 July 2021, section 3 of the Act contains subsection 6, which prescribes exclusions and answers questions that group companies tend to ask when assessing whether they are governed by the Act. This article explores how intragroup services qualify for statutory exclusions.
In July 2021 the OECD released Latvia’s Stage 2 Peer Review Report findings obtained in peer-reviewing its progress with implementing the Minimum Standard of BEPS Action 14 for improving tax dispute resolution mechanisms. Stage 2 aims to monitor the implementation of recommendations arising from Latvia’s Stage 1 Peer Review Report. Overall the Stage 2 report finds that Latvia has eliminated most of the flaws found in the Stage 1 report.
The year 2021 and the current macroeconomic cycle have brought a number of adjustments and uncertainty about the future to households (private consumers), businesses of various sizes, and policymakers. Covid-19 and related paradigm changes, the risk of recurrent pandemic, disrupted logistics and supply chains, and other factors create substantial risks affecting companies’ ability to stay in business and grow. This article explores common causes of financial distress and debt restructuring tools, including how companies can reach an agreement with the State Revenue Service on paying taxes.
We have written earlier about amendments to the Anti Money Laundering and Counter Terrorism and Proliferation Financing Act (the “Act”), which, among other things, will make it easier for persons that are subject to the Act (“Subjects”) to report suspicious transactions and will set up a common customer due diligence tool. This article explores changes to the requirements affecting the ultimate beneficial owner (“UBO”) of a Subject.
The Competition Council’s decisions on a number of recently completed controversial investigations have raised the question of recovering damages caused by an infringement of competition law. What circumstances should the injured party and the offender take into account if anyone harmed by a competition offence has the right to claim compensation for that harm?
