NORDSCI Conference proceedings 2018, Book 2
Business and Management
COMPANY’S ACTIVITIES TERMINATION BY TAX AUTHORITY DECISION (SIMPLIFIED LIQUIDATION, LATVIA EXAMPLE)
Mg. oec., PhD student, lecturer Laila Kelmere
This paper analyzed the governments role to stimulate and to control the entrepreneurship environment. During the crisis, several taxes were amended to slightly mitigate the effects of the crisis, and in 2010 the Micro–enterprise Tax Law was developed and adopted. Started from 1996 the State Revenue Service has the right to suspend the taxpayer's economic activities (natural and legal person) due to infringements of laws and regulations. Due to low tax morale after financial crises in and taxpayer’s reluctance to pay taxes in 2011 in the structure of the State Revenue Service was created of a new unit - the Tax Accounts Administration. In 2012 marked out that a part of the merchants, effectively terminating their business, are not legally dissolved and are not excluded from the Commercial Register, therefore, in 2012 essential amendments were made in the Commercial Law and in the law On Taxes and Duties – the requirements of both regulatory enactments were aligned and come into force the company’s simplified liquidation. The statistical data confirms that State Revenue Service and the government role in organizing the business environment are significant.
The research aim is to analyze the government’s role to stimulate and control entrepreneurship by amendments in enactments and the State Revenue Service right to suspend and restore the taxpayer's economic activities in Latvia. Based on the aim, the following research tasks were set: to analyze the registration and exclusion dynamics of companies; to analyze the development of enactments and amendments in them due to taxpayers activities and how to work the special instrument for the State Revenue Service`s – terminate the company’s activities due not to cooperate with the State Revenue Service; to analyze the taxpayers simplified liquidation and exclusion from the Register of Enterprises on the bases of a decision of the tax authority.
Materials and methods. The principal materials used for the studies are as follows: various enactments, amendments, various sources of institution reports and statistics. The following qualitative and quantitative methods were employed: the monographic method, logical analysis and synthesis, statistical methods, i.e. statistical observation, compilation and grouping of information, calculation of statistical data etc.
business environment, government role, tax administration, entrepreneurship
NORDSCI Conference Proceedings 2018, Conference Proceedings, ISSN 2603-4107, ISBN 978-619-7495-01-0, COMPANY’S ACTIVITIES TERMINATION BY TAX AUTHORITY DECISION (SIMPLIFIED LIQUIDATION, LATVIA EXAMPLE), 11-20 pp, DOI paper 10.32008/nordsci2018/B2/V1/13