The State Revenue Service and the association "Farmers' Council" sign a cooperation agreement on promoting fair competition and tax payment in the sector

Today, on May 7, 2014, Ināra Pētersone, Director General of the State Revenue Service (hereinafter – SRS), and Juris Lazdiņš, Chairman of the Association “Zemnieku saeima” (Farmers’ Council), have signed a cooperation agreement to combat tax evasion and promote fair competition. in the agricultural production sector.

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The aim of the bilateral agreement is to reduce tax evasion by taxpayers working in the agricultural production sector, especially the costs of "envelope wages", thereby reducing the possibilities of unfair competition in this sector.

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Juris Lazdins, Chairman of the Association "Farmers' Council": "We are pleased with the development of constructive cooperation between farmers and the State Revenue Service. Everyone will benefit from this – both the state business environment as a whole, the control institution, which will have feedback on problem situations in the sector, and the members of the organization, who, with the help of the organization, will be able to more directly explain their issues of interest to the State Revenue Service. The development of mutual cooperation is a step towards approaching the situation of older European Union member states, where state institutions are mainly consultative, not repressive in nature. Only in this way can we improve Latvia's weakened business environment and increase tax payments to the state budget."

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SRS Director General Ināra Pētersone: "As the head of the SRS, I am very pleased that we have agreed and today also confirmed in writing the previously initiated constructive cooperation with one of the most influential and significant agricultural sector organizations in terms of the number of members - the Latvian agricultural producers' organization "Zemnieku saeima". It is an organization that has proven itself in its daily work as a purposeful sector policy maker not only in Latvia, but also in the European Union, actively fighting for its opportunities and the interests of all farmers. The concluded agreement provides broader opportunities for entrepreneurs themselves to become increasingly involved in resolving issues of tax compliance in their sector and to take a more active approach to tax evasion and "envelope wages", while at the same time, the members themselves individually demonstrate the culture of an honest taxpayer, taking responsibility not only for themselves, but also for the well-being of their children and parents. I am convinced that the SRS's increasingly close cooperation and regular exchange of information with organizations representing Latvian entrepreneurs contributes to ensuring fair competition conditions and reducing the shadow economy, as well as generally promoting a favorable environment for commercial activity in Latvia."

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This is the fifteenth Agreement signed between the SRS and the business association with the aim of jointly combating tax evasion and "envelope wages", as well as promoting fair competition conditions.