Suspension of economic activity is one of the most unpleasant situations that a company can face. In such a case, the taxpayer is prohibited from fulfilling payment obligations and conducting transactions. It is important that this restriction should also be taken into account by the company’s cooperation partners, because cooperation with a company whose economic activity has been suspended may not be continued.
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“Lursoft” has researched that during the first half of this year more than 1,600 companies have already stopped their economic activity. During the whole year last year – 4217 companies, while in 2021 – 4893. It should be noted that there may be several reasons for the decision of the State Revenue Service (SRS) to suspend the economic activity of the company, including:
The company has avoided paying taxes or fees; The taxpayer employs persons with whom no written contract has been concluded; Employees are paid “envelope wages”; The taxpayer does not cooperate, does not submit documents and does not respond to the requirements of the SRS; Etc. cases.
At the same time, it should be noted that the company itself can also decide and submit an application to the SRS regarding suspension of economic activity, for example temporary suspension of activity, but practice shows that the number of such cases is relatively small.
If the suspension of economic activity is the last sign that business cannot be concluded with the particular company in the future, Lursoft draws attention to the fact that there are also several other signals that let us know in a more timely manner that the conditions of future cooperation with the particular company should be reviewed. For example, tax debts, asset collateral, non-submission of annual reports, late payments, decisions made by the SRS regarding detected violations in the company’s operations, etc.
“Lursoft” has researched that of all the companies whose economic activity has been suspended this year, the absolute majority, ie 93%, have registered active guarantees. Only a fifth of the companies whose economic activity was suspended in the first half of the year submitted a report for 2021, while less than a tenth submitted a report for the past year. This alone reaffirms the importance of careful initial research of new customers and suppliers, as well as constant monitoring of existing customers in order to evaluate the terms of future cooperation in the event of various risks.
This is also important because good financial results are not always guaranteed to eliminate business risks for cooperation. Lursoft has researched that out of all the companies whose economic activity was suspended this year, the turnover of 11 companies exceeded 1 million in 2021. EUR, some of them employed several dozen employees. At the same time, it should be noted that none of these companies have submitted reports for the year 2022 and most of them have accumulated significant tax debts.
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Thus, for example, the fuel retailer SIA “NetOil”, founded in 2016, had increased its turnover to less than 5 million just last year. EUR and employed 15 employees. Lursoft information shows that in July 2021 SIA “NetOil” also received less than 37 thousand. EUR large grants for ensuring the flow of working capital during the Covid-19 pandemic, but in December 2022, a sworn bailiff imposed a ban on the company for all kinds of re-registration, while this year the SRS also imposed three more safeguards on the company. “NetOil” SIA has registered tax debts for a long time, but in August of last year its amount increased rapidly from 13.14 thousand. EUR up to 733.2 thousand. EUR. Currently, the amount of the company’s tax debt has reached 768.6 thousand. EUR. The SRS made the decision to suspend the economic activity of SIA “NetOil” this year. in March. Of all the companies whose real beneficiary is the owner of SIA “NetOil” Andrejs Maksimovs, this is the only company whose economic activity is currently suspended.
Unlike the fuel retailer SIA “NetOil”, which, despite the increase in turnover, operated at a loss last year, SIA “Top Timber” significantly increased its turnover in 2021, and ended the year with a profit. Lursoft Multi report data shows that in 2020, SIA “Top Timber” had a turnover of 202.46 thousand. EUR, but a year later its turnover had increased to 3.67 million. EUR. The wholesaler closed the year before last with less than 15 thousand. EUR big profit. In April of this year, a sworn bailiff applied security to the company, a month later – also the SRS, and a month later the company’s economic activity was suspended. The information available to Lursoft shows that in October and November of last year alone, the tax debt of SIA “Top Timber” exceeded 5 thousand. EUR.
Lursoft has researched that in the wholesale and retail sector, in which SIA “Top Timber” also operated, the largest number of companies whose economic activity was suspended was registered in the first half of this year. The second largest number of companies with suspended economic activity is registered in construction.
It should be noted that currently the economic activity of a total of 10,253 companies has been suspended, of which 27.48% represent the trade sector, and another 11.10% – construction.
Lursoft’s data shows that the two sectors are numerically the most among companies whose economic activity has been suspended this year.
Sectors with the most companies whose economic activity was suspended in the first six months of 2023:
Wholesale and retail trade;
Construction;
Transport and storage;
Professional, scientific and technical services;
Manufacturing.
The average age of companies whose economic activity has been suspended this year is 7 years. Among them, as shown by the information collected by Lursoft, there are also 63 companies registered last year alone.
More than half of these companies are small-cap SIA, but among the companies registered last year, whose economic activity has been suspended this year, there is also SIA “Stock Seller” from Ādažu district, whose registered capital is 200 thousand. EUR. It should be emphasized that the economic activity of the company was suspended this year. on March 31, but it was restored less than two weeks later. Lursoft’s inquiry information reveals that for this period the company was also subject to the ban imposed by the SRS on reorganization and change of members. Lursoft’s data show that of all companies whose economic activity was suspended this year, economic activity has already been restored in 92 cases.
SIA “Stock Seller” is owned by Alisa Novikova (25%) and the Otmakhov family from Russia. It should be noted that foreign capital is registered for almost a fifth of all companies whose economic activity has been suspended this year.
2023-07-07 06:15:12
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