Administrative liability for non-payment of taxes and duties is determined by Section 34 of the Latvian Law “On Taxes and Duties”.
If a natural person engaged in performance of economic activity without registering as a taxpayer, within 30 days after receipt of the reminder from the tax administration on the obligation to register as a performer of economic activity:
1) registers in the taxpayer’s register and submits the tax declarations provided for in tax laws for the taxation period in which economic activity was performed, the tax assessed under tax declarations but not remitted into the budget on time shall attract the late payment charge assessed from the date on which the person had to register as a taxpayer in the amount provided for in Section 29, Paragraph two of this Law;
2) registers as a taxpayer, however, does not submit the tax declarations provided for in tax laws for the taxation period in which economic activity was performed, the tax authorities shall assess and enforce, on the basis of a tax review (audit), the tax into the budget assessing it from the date on which the person should have registered as a taxpayer, as well as the associated late payment charges in the amount laid down in Section 29, Paragraph two of this Law and a fine at 50 per cent of the underpaid tax due into the budget;
3) does not register as a taxpayer and does not submit the tax declarations provided for in tax laws for the taxation period in which economic activity was performed, the tax authorities shall, on the basis of a tax review (audit), assess and enforce tax into the budget calculating it from the date on which the person should have registered as a taxpayer, the late payment charge related to it in the amount provided for in Section 29, Paragraph two of this Law and a fine at 100 per cent of the underpaid tax due into the budget.
According to Section 29, Paragraph two of the Latvian Law “On Taxes and Duties”, failure to pay taxes and fees within the statutory term shall attract late payment charges at 0.05 per cent of the outstanding principal debt for each outstanding day.
In addition, the following administrative penalties may be imposed for tax evasion, non-compliance with the taxpayer’s registration procedure, non-compliance with the conditions for declaring cash transactions, non-compliance with the deadlines for submission of tax returns.
A fine of twenty-eight to four hundred fine units shall be imposed on a natural person for evasion of taxes or similar payments or for concealment or reduction of income, profit or other taxable objects (Section 135 of the Latvian Law “On Taxes and Duties”).
A warning or a fine of ten to forty-two fine units shall be imposed on a natural person for non-registration in the register of taxpayers within the time limits specified in regulatory enactments (Section 136 of the Latvian Law “On Taxes and Duties”).
For non-declaration of cash transactions, except for the condition below, a fine of three percent of the undeclared amount shall be imposed on a natural person. A fine of 15 per cent of the transaction amount shall be imposed on a natural person for performing a transaction in cash if the amount of the transaction exceeds EUR 1,500 (Section 139 of the Latvian Law “On Taxes and Duties”).
A warning or fine shall be imposed on a natural person for submission of a tax return in violation of the submission term specified in tax regulatory enactments from three to 10 days, unless the submission of a monthly or quarterly return in the electronic declaration system of the State Revenue Service is delayed once for up to five days from five to fourteen fine units (Section 141 of the Latvian Law “On Taxes and Duties”).
A fine of fifteen to thirty fine units shall be imposed on a natural person for submission of a tax return in violation of the submission term specified in tax regulatory enactments from 11 to 20 days (Section 141 of the Latvian Law “On Taxes and Duties”).
For submission of a tax return in violation of the term for submission specified in tax regulatory enactments from 21 days to 30 days, a fine shall be imposed on a natural person from thirty-one to fifty-six fine units (Section 141 of the Latvian Law “On Taxes and Duties”).
A fine of fifty-seven to one hundred and forty fine units shall be imposed on a natural person for submission of a tax return in violation of the term for submission specified in tax regulatory enactments for more than 30 days or failure to submit the return (Section 141 of the Latvian Law “On Taxes and Duties”).
It must also be understood that if several administrative offences have been committed by one and the same action, an administrative penalty shall be applied for each offence (Section 22 of the Latvian “Law on Administrative Liability”).
One fine unit is 5 euros (as of 29.12.20.).
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