Proceedings in the case on the amount of the fine for delayed submission of a declaration have been terminated
The Constitutional Court has decided to terminate proceedings in the case No. 2010-09-01 “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”.
The contested norm was effective from 1 January 1998 to 31 December 2006, and it established a fine for breaches of the regulations on the use of cash. The applicant, the Administrative Case Department of the Senate of the Supreme Court held that the fine established in the contested norm regarding non-observance of the procedure regarding declaration of cash transactions is graver than that for non-submission of any such declaration.
The Constitutional Court indicates that the above mentioned norm shall not be interpreted in a way indicated by the applicant. The aim of the Law is to restrict cash transactions; therefore the Law established fine for cash deals, the total amount of which exceeds 3000 lats per month. However, if such transactions are not declared according to proper procedure, the fine was established at a greater amount.
Therefore the Constitutional Court concluded that, in the case under review, the dispute is related to interpretation of the norm rather than with compliance thereof with the Satversme; therefore the Court decided to terminate the proceedings.
The Judgment of the Constitutional Court is final and not subject to appeal.
Linked case: 2010-09-01