SRS: violations uncovered at restaurants mostly associated with illegal employment
Most of the violations uncovered by Latvian State Revenue Service during inspections at restaurants in Riga and Jurmala are associated with illegal employment and non-declaration of revenue, said SRS Director Ilze Cirule in an interview to Rīta Panorāma this morning 23 August.
«Our inspectors surveyed approximately 15 restaurants. The main problems we have identified include illegal employment and nondeclaration of revenue,» said Cirule, adding that inspections at catering business will continue.
At the same time, she adds that fines were applied only in rare cases – when companies illegally employ people. For other violations, no fines were applied.
Cirule adds that companies that were surveyed by SRS have all experienced a rapid rise of registered transactions.
«The companies we have surveyed have all experienced 50% to 100% increase in the number of registered transactions when compared with the previous month,» said Cirule.
At the beginning of July, SRS and Latvian Association of Hotels and Restaurants signed an agreement on cooperation and information exchange to reduce the number of tax avoidance cases, encourage payment of appropriate wages and honest payment of taxes, as well as ensure transparent and complete reports on earnings to further reduce the proportion of dishonest competition in the industry.