After the introduction of the tax reform, tax accounting will become more complex. And this is not because it will take several years for businesses, private persons and tax inspectors to get used to the system. The new laws in general are not meant to make things simpler, says Latvian Tax Consultant Association board member Ainis Dabols.
“It is clear that once changes are added to the legislation, work becomes more complicated for tax inspectors and tax payers, because time has to pass for everyone to get used to the new rules. Usually the period is around two years, as can be found out if you visit website. But if we look at some of the new laws, it becomes clear that simplification is not part of the plan. For example, businesses submitted declarations once a year in the past. Now they will have to do that once every month,” the expert explains.
According to him, everyone – State Revenue Service, accountants, auditors and notaries – will have more work in the coming years.
“This is because the tax system that currently exists in Latvia consists of two stages. The first one took place in 1995, and the second – in 2010. Everyone has gotten used to this system,” says the expert.
At the same time, he says that the approach for all tax system participants is being changed significantly. The new approach will not be as simple for participants.
“One thing is introducing a new system – adapting a new electronic declaration system for new rates and remaking programs. The laws are new, so there may be many various discrepancies. Three to four years have to pass for us to finally accept the new tax system,” says Dabols. (BNN/Business World Magazine)