Latvian VID commences criminal proceedings over payment of envelope wages

Latvian State Revenue Service (VID) Tax and Customs Police have commenced criminal proceedings regarding the payment of envelope wages in a company engaged in wholesale of lumber and building materials, the service reports.
According to VID, pre-trial investigation revealed that between December 2021 and October 2022 the company in question was not recording in accounting records the wages paid to their workers. The investigation also revealed that the amounts not included in accounting records were paid to workers in cash form.
The exact estimate of the damages caused to the state in the form of unpaid PIT and state social insurance contributions is unknown as of yet – the investigation continues.

However, initial estimates indicate the amount of damages may exceed EUR 28 000.

As part of the criminal proceedings VID Tax and Customs Police performed 17 searches in Riga and Ropaži in October 2022.
According to VID, during the search law enforcers found and confiscated EUR 28 000 of cash, 11 blocks of cigarettes bearing Belarusian excise labels, as well as other items important for the investigation.
One person is a suspect and was presented with a security measure not involving deprivation of freedom.