The State Revenue Service (SRS) announced yesterday that three people have been detained in connection with illegal activities in the supply of chairs to the concert hall. Not to mention the names of the persons, today the SRS confirmed that the detained persons have been released and security measures not related to deprivation of liberty have been applied to them. The SRS did not disclose the appropriate security measures, but confirmed that the suspects had shown initiative to cooperate with the investigation.
According to the Criminal Procedure Law, non-custodial security measures include notification of change of residence, reporting to a police station at a specified time, prohibition to approach a certain person or place, prohibition of certain occupations, prohibition to leave the country, stay in a certain place and transfer to police supervision.
It has already been reported that officials of the SRS Tax and Customs Police Board (NMPP) in connection with the tax fraud scheme in July performed procedural activities in Dzintari Concert Hall.
During a series of investigative and operational activities, it was found that a criminal group had committed illegal activities in supplying chairs to the concert hall. The company made a fictitious delivery of chairs to a foreign company, which in turn delivered the chairs to a customer – a concert hall as a result of a public procurement tender, according to the SRS.
The SRS claims that the company declared value added tax (VAT) at a rate of 0%, instead of 21%, as it would be if the chairs were delivered to a Latvian business partner. This fact indicates that the transaction is fictitious – in order to avoid payment of taxes, as well as to hide the hidden relationship between the tenderer and the actual supplier of goods (chairs). The companies bought Lexus RX cars after the fictitious transaction for possible criminal proceeds, previously reported by the SRS.
In the tax fraud scheme opened by the SRS in the concert hall, the losses caused to the state in the form of unpaid taxes are a little more than 50,000 euros.
In the initiated criminal proceedings, the employees of the SRS NMPP conducted six searches in the residences, vehicles and offices of the persons involved in the criminal proceedings. Evidence relevant to the criminal proceedings was found and seized during the searches. Three people were detained. The Lexus RX has been seized to secure property.
According to Latvijas Televīzija, referring to the information at its disposal, the SRS detained the technical director and procurator of the Dzintari Concert Hall Piļkevičs, who was the head of the procurement commission during the procurement of chairs five years ago. His wife, through whom the company’s alleged criminal scheme was implemented, was also detained.
In connection with the activities of the criminal group, the SRS NMPP has initiated criminal proceedings under three articles of the Criminal Law – money laundering, evasion of taxes or similar payments and violation of accounting information regulations.
Information on the website of the Procurement Monitoring Bureau shows that SIA “Dzintaru koncertzāle” organized the procurement of new chairs in 2015. The Estonian company “Tooner Master” won the procurement with three tenderers with a contract price of 224,598 euros.
The sole owner of “Dzintari Concert Hall” is Jurmala City Council. The only member of the company’s board is Guntars Ķirsis, but the company’s procurator is Piļkēvičs.