Two criminal cases over concealed company profits in Riga sent to prosecutors
In September, the Tax and Customs Police sent two criminal cases against officials of Riga-based companies to prosecutors. The officials allegedly hid nearly two million euros in profit using fictitious transactions, causing the state €823,240 in losses.
/nginx/o/2026/08/07/17833701t1he424.jpg)
Latvia's Tax and Customs Police (NMP) completed work on two criminal proceedings against officials of companies operating in Riga this September and passed them to the Tax and Customs Cases Prosecutor's Office, which will decide whether to launch criminal prosecution. The cases concern tax evasion, and the loss to the state budget named in them is €823,240.
How the scheme worked
According to the police, in both cases company officials reported fictitious transactions, meaning deals that never actually took place, in their value added tax (VAT) returns. This allowed the companies to conceal their real profit, which totalled nearly two million euros.
By hiding the profit, the officials avoided paying corporate income tax. As a result, the state budget lost €823,240.
Measures taken
In both cases, the companies' property has been placed under arrest. Proceedings have also begun to apply coercive measures to the legal entities, so responsibility may be assigned not only to individual officials but also to the companies themselves.
The next step is the prosecutors' decision on starting criminal prosecution. The source does not name the companies or the officials, nor does it give any timeline.
