Observant Notice: A Missive Arrives from the Latvian Revenue Authority

The Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt), also known as the SRS, is taking a proactive approach to create a more transparent tax environment. The focus of the SRS's strategy is evolving, with a particular emphasis on the construction sector.

The SRS is targeting individuals who have significant discrepancies between their bank account turnover and the income declared in their tax returns. Approximately 70,000 individuals are believed to have such discrepancies, with a minimum threshold of 20,000 euros for receiving a letter from the SRS.

The SRS's goal is to ensure that these individuals pay their correct taxes. The letters sent to these individuals aim to encourage people to pay correct taxes and to address cash-in-hand or 'envelope' payments, which are common in the construction sector.

In addition to targeting individuals, the SRS is also focusing on construction companies that pay atypically low wages. The SRS plans to contact around 260 construction companies in this regard. The SRS's new focus is on combating underreported wages in the construction industry, as part of its broader strategy to create a more transparent tax environment.

The SRS's approach is focused on encouraging tax compliance through targeted letters. The letters serve as a reminder to individuals and companies to be transparent in their tax declarations and to pay their correct taxes. This method is intended to mobilize society with regards to tax compliance and to encourage people to pay their fair share.

The SRS's strategy is not new, but its expansion into the construction sector is a significant step towards ensuring correct tax payments across all industries. The SRS's aim is to create a more transparent tax environment, where everyone pays their fair share and contributes to the economic growth of the country.