Latvian Traders Association: SRS covers up cash registers scheme

Finance Ministry’s forced cash registers reform is already outdated. On top of that, it was basically copied from Sweden, which had introduced it in 2006 and had found it impractical later in 2010, says Latvian Traders Association’s President Henriks Danusevics.

He says that LTA proposed developing a modern control system in accordance with recommendations from the European Commission.

LTA proposes providing true information about State Revenue Service’s cash register fraud prevention measures. The association also wants a clear answer as to why SRS has a neglecting position towards establishing criminal liability for tampering with cash register data.

«SRS states that eighteen cases involving tampering with cash register data were recorded last year. Who are those people and what was the extent of the damage done to the state? Also, who are the people that steal half a million euros a day by tampering with cash register data and why don’t authorities take measures against this? Why does the service open its eyes only now? SRS made no reports about losses worth half a million euros a day in the past. On top of that the service did not inform LTA about such a problem. SRS is also unable to combat fraudulent VAT schemes and collect tax debts from large debtors,» Danusevics voices his concerns.

He emphasizes that price rise is the consequence from the current reform. Finance Ministry has noticed this as well. The ministry admits that because of that there have been slower growth rates in service industries. For example, while trade industry has had a powerful 5% annual growth, growth in commercial service industry has dropped to 2.4%. Certification of cash registers for swimming pools will cost EUR 18,000 and the cost for a single coffee machine – EUR 16,000. Replacement of cash registers for well-known Latvian manufacturers will cost EUR 210,000, LTA president continues.

Danusevics is confident that Finance Ministry should turn to good management practices in discussions with society, industry associations and the Saeima. Until now the ministry’s representatives avoided meeting with associations and Saeima’s National Economy Committee.

European Commission Vice-President Valdis Dombrovskis says: «In accordance with good management principles and international practices, responsible institutions have to secure an appropriate transition period for businessmen to adapt their systems to new requirements.»

Danusevics says: «Because rumours have been spread about LTA allegedly covering up interests of the criminal world, we have decided to turn to Security Police. We are also considering turning to KNAB.»

LTA has calculated that a single foreign company’s profits at the expense of Latvian buyers will be EUR 60 million this year. Considering the current practice in Latvia, someone will earn the «rightful» ten percent, Danusevics says.

BNN 

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