I specialise in litigation and in my practice as a lawyer I have on more than one occasion represented clients in complex tax disputes involving both the State Revenue Service (SRS) and the court system. Experience has shown that approaches to dealing with such cases vary widely - sometimes very professional and thorough, and other times unfortunately superficial and formal.
That is why I would like to draw public attention to a particular situation which, in my view, goes beyond the boundaries of justice. In this case, the SRS sought to assess tax on the basis of based on digital platform data only, ignoring the actual financial documents, the company's accounting records and the facts of the change in the company's structure.
The Court had to remind the parties that platform data is not legally binding proof of actual income, especially if payments are made in cash, off-platform or by other means - such as a meter. This position of the Court is not only legally sound, but also significant for the entire taxi and platform economy sector in Latvia.
I would therefore like to share some key lessons from this judgment that I think are important for every entrepreneur, accountant, consultant and also legislator who is making policy in the digital and service economy.
This judgment is an important reminder of the importance of evidence and shows that data from digital platforms does not always correspond to reality.
Key lessons from the judgment:
