Following the recommendation of the State Audit Office the Ministry of Finance and the State Revenue Service have improved the procedure for refund of the overpaid personal income tax and value added tax. Therefore taxpayers can expect that the SRS will refund the overpaid VAT and PIT in a timely manner and will also pay the penalty for delay in case of non-compliance with the refund deadline.
“The state expects from the taxpayers full compliance with the tax laws and regulations, and it is justifiable. However, the state, in this case the State Revenue Service, has to be as principled also regarding non-fulfilment of its own liabilities. Over several years in the audits by the State Audit Office we have revealed that the SRS frequently delays refund of overpaid taxes and there are deficiencies in the calculations of penalties for delay. By implementing the recommendation given in the audit of the State Audit Office the State Revenue Service has improved the system to refund the overpaid VAT and PIT in a timely manner, but in case of a delay to ensure that the penalty is calculated appropriately and taxpayers receive it. We expect that the SRS will continue the work to improve the system and implement our recommendation also in the future, but this is a good message to the citizens and entrepreneurs. All taxpayers should be treated equally and not only taxpayers should be held liable for the fulfilment of their obligations,” the Auditor General Elita Krumina (Elita Krūmiņa) explains the results of the implementation of the recommendation.
By improving the refund of overpaid taxes and the system for the calculation of the penalty for delay the State Revenue Service has also decreased the risk that taxpayers will claim against the state budget for the calculation of the penalty for delay.
Following the audits of statements of financial years, every year the State Audit Office gives a number of recommendations to the Ministry of Finance and will continue to follow up the implementation of the recommendations and will inform the society about the results of the implementation.