On April 19 the Latvian parliament with majority votes supported a bill banning Latvia’s banks from doing business with shell companies in the first reading.
Under the draft law, the shell company is defined as an entity that fits one or several of the following three criteria. Firstly, there is no actual economic activity and no documentary proof to the contrary. Secondly, the entity is registered in a jurisdiction where companies are not required to submit to the authorities their financial statements. Thirdly, the entity has no place of business in its country of domicile.
The bill says banks will have to cease cooperation with shell companies within 14 days and close their accounts within 60 days. Therefore clients have time to finalize their business and move assets abroad freely until end of June 2018.
Following this period, these clients will be able to retrieve the money to their accounts in the holder bank or another one, but the clients will not be able to use this money for business.
This serves as a last call to businesses to abandon old style tax-free and audit-free structures, and relocate their business and banking to more reputable jurisdictions like Cyprus and others benefiting from minimal tax obligations but complying fully with all EU and international standards and requirements.
Should you require any advice on closure of Latvian bank accounts, or solutions for relocating your businesses and funds, please get in touch with us and NAKLAW team will be happy to help!
Nasos A. Kyriakides & Partners LLC is participating at the VEDOMOSTI LEGAL FORUM in Moscow on April 12th and 13th.
You can visit our booth No. 1 to discuss the latest legal developments in Cyprus companies, Cyprus banks, Tax issues, Cyprus passport by investment and any other questions that you may have.
Furthermore following the liquidation of ABLV Bank in Latvia and near term closure of all offshore accounts in Latvian banks, our Firm as the Major Law firm in representing depositors of ABLV and other banks. Therefore whilst in Moscow we are also available to meet regarding this matter and present possible legal steps for recovery of blocked deposits as well as further solutions for banking.
Senior members of our Firm will attend the forum, including Mr. Nasos Kyriakides, the Managing Director of our Firm and Mr. Martins Rozitis – Legal Consultant from Latvian branch.
You can book an appointment with us at email@example.com or come directly to our booth in VEDOMOSTI LEGAL FORUM in Moscow, Marriott Royal Avrora Hotel on 12. and 13. April.
Since 9th of April 2016 the Central Bank of Cyprus (CBC) has activated the Deposit Guarantee Scheme (DGS) compensation for FBME Bank Ltd – Cyprus Branch (FBME) deposit holders.
The Deposit Guarantee and Resolution of Credit and Other Institutions Scheme, which has been established by Law (“the DGS”), will pay via the Deposit Guarantee Fund for Banks compensation to the depositors of FBME in relation to their deposits at FBME which are covered by the DGS, with the maximum amount of compensation to each eligible FBME deposit holder being €100.000 per depositor.
The eligible depositors of FBME are reminded to submit the standardized statement of particulars for compensation, which upon assessment by FBME is submitted to the CBC for review. The last day of submission of depositors’ particulars and accompanying documentation regarding the payout procedure for deposits at FBME is the 11th of April 2018. DGS will proceed to compensate all eligible FBME deposit holders.
Nasos A. Kyriakides and Partners LLC, may act on behalf of FBME eligible deposit holders and provide support during the compensation process by the DGS.
For any information, you may contact us at firstname.lastname@example.org
With regards to the liquidation of Bank ABLV, we have partner European fully regulated broker, that can open accounts for clients from any jurisdiction and provide transfer for any transferable securities (bonds, stocks, ETFs, funds, futures, options) from bank ABLV.
• Account opening within 1-2 days in case all necessary documents are provided.
• Minimal value of transferable securities – at least 100K EUR
• Procedure of security transfer depends on each situation individually and is discussed directly with client.
Please get in touch with us for further instructions or in case you have any additional questions.
Mr. Martins Rozitis
Nasos A. Kyriakides & Partners LLC
Office: +357 25352352, Mobile: +371 26536624
Company tax returns (form IR4) for all companies must be filed within 15 months from the end of the tax year, which is 31 December, i.e. the tax return for the year 2016 must be filed not later than 31 March 2018. The tax returns must be based on audited financial statements.
In case of late filing, an immediate penalty of €100 is imposed, with further penalties arising until submission.
Legal action may be initiated against the company and its directors for failure to submit company tax returns.
Furthermore be reminded that if you wish to obtain a Tax Certificate for the year 2018:
Any request up to 31.03.2018 – IR 4 of 2015 must be submitted at the Tax Office.
Any request from 01.04.2018 – IR 4 of 2015 & 2016 must be submitted at the Tax Office.
For more information please contact us at email@example.com
Further to the recent announcement of ABLV, in accordance with the Deposit Guarantee Law, there are available for payment up to EURO 100 000 guaranteed deposits to each eligible client from Deposit Guarantee Fund.
ABLV has sufficient amounts of liquid assets to ensure repayment of all sums; therefore, the Bank has already transferred more than EUR 480 million to the Fund for disbursement guaranteed compensations.
1. State-guaranteed compensation disbursement to ABLV Bank clients will is provided by Citadele Bank as the intermediary bank for the purpose of payments of March 3rd.
Citadele Bank will receive an ABLV Bank client register details from the FCMC which will show the clients’ information as well as how much must be paid to each client, up to EURO 100.000.
All payments will be made in EURO currency and deposits in other currencies will be calculated into Euro.
Clients whose total deposit sum with ABLV Bank is more than the 100,000 Euro limit set by the state can submit their claims as creditors as part of the ABLV Bank liquidation process.
2. Who can receive state-guaranteed compensation.
In accordance with the Deposit Guarantee Law, ABLV Bank’s Latvian and international clients – private customers and legal persons – with deposits at ABLV Bank can receive state-guaranteed compensation. State-guaranteed compensation applies to all deposited funds – term deposits, current accounts, wage accounts, savings accounts, etc. (not including financial instrument accounts).
State-guaranteed compensation can be issued via transfer to the client’s bank account at Citadele or any other bank.
3. By law, guaranteed compensation is not issued:
For deposits with no transactions in 2 years, for deposits linked with money laundering, credit and financial institutions, insurance companies, private pension funds, investment firms and investment broker companies.
4. International clients and relevant necessary documentation.
a. Private customers: Would need to present valid passport and representatives of a private customer to present authorized representation documentation eligible to represent the private customer. b. Legal persons: would need to present valid passport valid, and representatives of a legal person to present authorized representation documentation eligible to represent the legal person.
i. Director’s appointment decree and/or notarized power of attorney)
ii. Registration certificate, statutes (current edition) and certification of the rights to represent a legal person
iii. Document certifying the legal person’s active status
5. How we can help:
Our firm has 17 years of experience firm in the area of banking and the particular as legal representatives of big a number of clients following revocation of banking license of FBME Bank and Trasta Komercbanka for the successful payment of state guaranteed funds of up to EURO 100.000, and continuation of legal measures for recovery of further amounts following future liquidation procedures.
We are fully organized and capable in providing the same services in the case of ABLV, from representing any client through our native Latvian legal expert who has been in our legal team in the procedures of both FBME and Trasta Komercbanka for successful returns of deposits to our clients.
Our services would be the following:
i. Full representation before Citadele Bank for recovery of the guaranteed deposits of up to EURO 100.000.
ii. Opening on behalf of our clients of new bank account in a bank in Cyprus, or in another bank in Europe, for a private person or for a company for transfer of amounts up to EURO 100.000 from Citadele Bank, and remaining funds during liquidation process.
iii. Legal representation in the liquidation procedure of ABLV in Latvia until the full recovery of all deposited amounts.
We shall be at your disposal for anything we could be of assistance.
Following FinCeb USA announcement the European Central Bank has initiated on 23.02.2018 the liquidation process of ABLV bank in Latvia. First payouts of state guaranteed deposits up to 100.000 EUR will start on 07.03.218. Further all remaining deposits will be claimed during process of liquidation. Both individual and corporate claims will be processed.
Nasos A. Kyriakides & Partners are taking immediate actions:
Represent clients for claims of guaranteed deposits of up to 100.000EUR;
Organizing group action on behalf of more clients together to gain more voting power during liquidation process;
Proceed with possible group court action for claiming amounts more than 100.000EUR.
Representing clients will be Mr Martins Rozitis who is our lawyer permanently based in Latvia and has 15 years experience with banking and liquidations in Latvia.
Please get in touch with us for further instructions or in case you have any additional questions.
Draft template of Special Power of Attorney can be found on our website www.naklaw.com
Following the introduction of the transfer pricing legislation since July 1st 2017, we wish to inform you that Nasos A. Kyriakides & Partners LLC is in a position to assist you and your clients to prepare the relevant transfer pricing studies and adhere to the new reporting obligations according to the revised tax treatment of intra-group back to back financing arrangements.
The new tax treatment concerns Cypriot and non-Cypriot tax resident companies with a permanent establishment in Cyprus which carry out group financing transactions. The term “intra-group financing transaction” refers to any activity of granting of loans or cash advances remunerated by interest to related companies, financed by financial means and instruments such as debentures, private loans, cash advances and bank loans.
For the purposes of transactions falling within this circular, it is necessary to be determined for each intra-group financing transaction whether the agreed remuneration complies with the arm’s length principle (as set out in Article 9 of the OECD Model Tax Convention on Income and on Capital).
We remain at your disposal for any further information/clarifications you may require as to the above.
The Legal Entity Identifier (LEI) is a 20-digit alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO) and refers to a unique identification given to legal entities participating in financial transactions. In simple words, the publicly available LEI data pool can be regarded as a global directory, which greatly enhances transparency in the global marketplace. Please email us at firstname.lastname@example.org in case you require any assistance on getting a LEI code.
The Department of Registrar of Companies and Official Receiver warns for dissolution of 81,680 companies.
Please be informed that further to the Department of Registrar of Companies and Official Receiver (hereby referred to as the “RoC”) announcement dated October 10, 2017 the RoC further announces that companies that have not paid the annual fee for each of the years 2012, 2013, 2014, 2015 will be deleted from the Register of the Department of Companies in December, stressing out that there are no extension margins.
The names of the companies have been published in the Official Gazette of the Republic at periodic intervals since last September. For example, in the 11th November issue, around 5,000 company names was included, giving them a three-month notice.
However, it should also be noted that 3,500 companies responded to the RoC’s call and settled their debts, while the number of compliant companies is expected to increase within the next few days.
The RoC reports that companies that owe the annual fee for previous years are over 80 thousand, while the total number of registered companies in the Registry is 215.702.
The problem of non-payment of fees is not only big but also perpetual, since only 50% of companies meet their obligation for payments of the annual fee of €350.
More specifically, companies that paid on time – by year are:
For 2017 only 103,728
For 2016 only 53%
For 2015 only 50%
As a total of 227,840 companies, only 114.117 paid the fee.
Please arrange all pending levy of your company, thank you!