Authorities seek prosecution of two Riga company officials over tax evasion

Officials at two Riga companies are accused of concealing profits and evading 823,240 euros in corporate income tax, LSM reports. The companies worked in building maintenance and metal and scrap wholesale.

In the first case, a board chairman at a building maintenance and operations company allegedly reported fictitious taxable transactions with companies registered in Hungary in value-added tax declarations. The transactions were used to conceal part of the company’s profits and avoid corporate income tax.

From March 2021 to October 2022, the chairman allegedly concealed 1,330,680.86 euros in profits and evaded 332,672 euros in tax. During the pre-trial investigation, the company reached an agreement with the State Revenue Service and paid 281,063 euros towards the losses before the case was referred for prosecution.

In the second case, a board member at a company that wholesales metals, metal ores, waste and scrap allegedly concealed profits from February to December 2022, evading 490,568 euros in corporate income tax.

The board member allegedly declared fictitious transactions with a fictitious company registered in Slovakia, applying the reverse-charge VAT procedure, and made payments to the company’s bank accounts for transactions that had not taken place.

A seizure has been imposed on real estate belonging to the first company and on shares in the second company belonging to its board member. Both officials have been placed under non-custodial security measures. The Prosecutor’s Office has been asked to initiate criminal prosecution against them.