In the tax fraud scheme opened by the State Revenue Service (SRS) in the Dzintari Concert Hall, the losses caused to the state in the form of unpaid taxes are a little more than 50,000 euros, SRS representative Andrejs Vaivars told LETA.
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As the agency LETA was informed by the SRS, officials of the Tax and Customs Police Board (NMPP) performed procedural activities in the Dzintari Concert Hall in July in connection with the tax fraud scheme. During a series of investigative and operational activities, it was found that a criminal group had committed illegal activities in supplying chairs to the concert hall. The company delivered a fictitious chair to a foreign company, which in turn supplied the chairs to a concert hall customer as a result of a public procurement tender.
The company declared value added tax (VAT) at a rate of 0%, instead of 21%, as would be the case if the chairs were delivered to a Latvian business partner. This fact indicates that the transaction is fictitious – in order to avoid payment of taxes, as well as to hide the hidden relationship between the tenderer and the actual supplier of goods (chairs). The companies bought Lexus RX cars after the fictitious transaction for possible criminal proceeds, previously reported by the SRS.
In the initiated criminal proceedings, the employees of the SRS NMPP conducted six searches in the residences, vehicles and offices of the persons involved in the criminal proceedings. Evidence relevant to the criminal proceedings was found and seized during the searches. Three people were detained. The Lexus RX has been seized to secure property.
According to Latvijas Televīzija, referring to the information at its disposal, Deniss Piļkevičs, the technical director and procurator of the Dzintari Concert Hall, who was the head of the procurement commission during the procurement of chairs five years ago, was detained.
In connection with the activities of the criminal group, the SRS NMPP has initiated criminal proceedings according to the features of the criminal offenses provided for in Section 217, Paragraph two, Section 218, Paragraph three and Section 195, Paragraph three of the Criminal Law. Under the third paragraph of Article 195, money laundering or other property, if committed on a large scale or by an organized group, is punishable by a term of imprisonment of three to 12 years, with or without confiscation of property, and probation supervision for up to three years or without it.
Pursuant to the second paragraph of Article 217, concealment or falsification of statutory accounts, annual reports, statistical reports or statistical information of an undertaking, institution or organization may be punishable by up to one year’s imprisonment or temporary deprivation of liberty or forced labor, or with a fine.
Section 218, Paragraph three provides for evasion of taxes or similar payments or for concealment or reduction of income, profit or other taxable objects, if it causes damage to the state or local government to a large extent and if committed by an organized group, to be punished by imprisonment. deprivation for a period of up to ten years, with or without confiscation of property and deprivation of the right to a certain or all type of commercial activity or to a certain occupation or the right to hold a certain position for a period of two to five years and probation supervision for a period of up to three years.
Dzintari Concert Hall public relations specialist Mārtiņš Pučka, referring to the statement of the board member Guntars Ķiršs, commented to LETA that the concert hall cannot provide information about the activities of other institutions. The concert hall also has no information as to whether there are concert hall officials or employees among the SRS detainees.
As the SRS explains, no further information is currently provided in the interests of the investigation. The Service reminds that in accordance with Section 19 of the Criminal Procedure Law, no person shall be considered guilty until his or her guilt in committing a criminal offense has been established in accordance with the procedures specified in the Criminal Procedure Law.
Information on the website of the Procurement Monitoring Bureau shows that SIA “Dzintaru koncertzāle” organized the procurement of new chairs in 2015. The Estonian company “Tooner Master” won the procurement with three tenderers with a contract price of 224,598 euros.
“Dzintari Concert Hall” in 2019 had a turnover of 2.044 million euros and earned a profit of 15,593 euros, according to “Firmas.lv” information. The sole owner of “Dzintari Concert Hall” is Jurmala City Council. The only member of the company’s board is Guntars Ķirsis, but the company’s procurator is Deniss Piļkēvičs.
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