Presentation of the Report on Shadow Economy in Latvia from the Investor’s viewpoint

Invitation to the presentation of the report on Shadow economy in Latvia: investor’s viewpoint – determinants, effectiveness of fight against shadow economy and recommendations for successful combating

The Foreign Investors’ Council in Latvia kindly invites you to attend the presentation of the report on Shadow economy in Latvia from the investor’s viewpoint that will take place on Thursday, 26 May, from 10:00 to 12:00 in Radisson Blu Hotel Latvija, 55 Elizabetes Street.

The report has been developed in close cooperation among the Foreign Investors’ Council in Latvia (FICIL), researchers from KPMG and the Stockholm School of Economics in Riga (SSER). It is based on qualitative interviews with top management representatives from the largest foreign companies in Latvia who openly share their observations as to why companies in Latvia engage in shadow economy and what systemic issues in the economy does it unveil. The report also provides for specific recommendations for decreasing the shadow economy in Latvia.

“Coming from abroad, it is very difficult for businesses and investors to understand the high level of shadow economy in Latvia – on the one hand, the legislation here is similar to that of other EU countries, on the other hand, the laws and virtues in reality are totally different,” explains Ģirts Greiškalns, Executive Director of FICIL. “The State Revenue Service is not the only responsible institution for the high level of shadow economy in Latvia. It is an issue of fair competition and thus also means compliance with transportation regulations and legislation on extra working hours, control and supervision of construction process, certification of construction materials and protection of consumer rights. Foreign investors often express their surprise about the large amount of cash in circulation and that in a country which is highly developed in terms of information technologies the use of electronic payment systems is still very limited. At the same time, I also hear a lot of understanding from investors regarding the situation and calls for better cooperation between business and the government, incentives for companies to operate legally and a better targeted support for newly established and small businesses,” comments Greiškalns.

At the event views and comments will be also presented by Mr Stephen Oldfield, Honorary Chairman of FICIL, Mrs Ināra Pētersone, Director General of the State Revenue Service, Mr Mārtiņš Krieviņš, Head of the State Chancellery and representatives of foreign investors.

The event will be held in English with simultaneous interpretation into Latvian

PROGRAMME:

9:45 – 10:00 Morning coffee

10:00 – 10:10 Introduction, Mr Stephen Oldfield, Partner at PricewaterhouseCoopers UK and Honorary Chairman of FICIL

10:10 – 10:20 Context of the FICIL report, Dr. Arnis Sauka, Associate Professor at SSER

10:20 – 11:00 Presentation of the report, Ms Ilze Berga, Tax Senior Manager at KPMG, and Mr Steve Austwick, Tax and Legal Partner at KPMG

11:00 – 11:10 Comment, Ms Ināra Pētersone, Director General of the State Revenue Service

11:10 – 11:20 Comment, Mr Mārtiņš Krieviņš, Head of the State Chancellery

11:20 – 11:30 Comment, Mr Eric Trusiewicz, Director of Strategic Planning & Administration at CEMEX Latvija (TBC)

11:30 – 12:00 Q&A