Latvia And Russia Sign Tax Co-operation Agreement

by Tatiana Smolensky, Tax-News.com, Moscow

22 February 2002

The Latvian Government announced on Tuesday that it has endorsed an agreement with Russia on tax co-operation and information exchange.

The agreement, which is due to be signed on February 27, will allow the tax administrations of both countries to provide mutual administrative assistance, and it is hoped that the information exchange provisions will reduce the amount of tax evasion and tax legislation breaches which take place between the two countries.

The Latvian Finance Ministry praised the new agreement, observing that as Russia is Latvia's largest neighbour and economic partner, it is important to have such provisions in place. It dismissed claims that the arrangement will place additional strain on the state budget, arguing that as a result of more efficient revenue collection, public finances could be improved.

According to reports, the endorsed agreement places particular emphasis on the need to stamp out corporate and individual tax evasion, and addresses the necessity to pursue correct tax calculations and better inter-country tax collection.

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