A case on the amount of the fine for a delayed submission of a declaration has been initiated
The Second Panel of the Constitutional Court has initiated a case “On Compliance of the Words “if These transactions Have not Been Declared in Accordance with Procedures Prescribed in Paragraph One of this Section – a Fine in the Amount of 15 Percent of the Total Amount of These Transactions, if not Provided Otherwise in This Section” of the Second Part of Section 30 of the Law “On Taxes and Fees” (Wording of 4 December 1997) with Article 1 of the Satversme (Constitution) of the Republic of Latvia”.
Article 1 of the Satversme provides that Latvia is an independent democratic republic. The contested norm that was valid from 1 January 1998 to 31 December 2006 provides that the fine for a delayed submission of a declaration on cash transactions shall constitute 15 per cent of the total amount of these transactions.
The Case has been initiated having regard to the application of the Administrative Case Department of the Senate of the Supreme Court, wherein it has been indicated that the contested norm establishes a fine for a delayed submission of a declaration, the amount of which exceeds the fine for non-submission of one. Such situation does not comply with the principle of proportionality.
The Saeima was asked to provide, before 9 April 2010, a reply on factual circumstances of the case and legal justification thereof. The term for preparation of the case is 3 July 2010.
Linked case: 2010-09-01