A case on norms of the Law „On Enterprise Income Tax” has been initiated
The First Panel of the Constitutional Court has initiated a case “On Compliance of Section 14 (2) and (3) of the Law “On Enterprise Income Tax” with Article 91 and Article 105 of the Satversme of the Republic of Latvia”.
Article 91 of the Satversme establishes equality of all persons before the law and the court, whilst Article 105 of the Satversme protects property right of persons.
The applicant SIA “Kuldīgas RPB” indicates that in 2007 changes in control of the enterprise have taken place. After having assessed functioning of the enterprise during the crisis, the new owner changed the type of its ordinary activity. The contested norms prohibit SIA “Kuldīgas RBP” to cover losses (overpaid enterprise tax) incurred by the enterprise before the change of the owner.
SIA “Kuldīgas RPB” holds that such procedure infringes its property right and causes unequal conditions for the enterprise if compared to those enterprises wherein control has not changed or that have not changed the type of ordinary activities.
The Saeima was asked to provide, before 11 January 2011, a reply on facts of the case and legal justification thereof. The term for preparation of the case is 11 April 2011.
Linked case: 2010-70-01