Post which is dedicated to Latvian State Revenue Service improvement
I will share my experience of declaring income for years 2003 and 2004 where in both years I was eligible for tax refund due to my cross-border operations.
2003
I declared my income in Latvia.
I prepared paper (hard-copy) declaration. The declaration was accompanied by (1) hard copy certificates with all signatures of accountants and managers from my working places about my income and (2) an application on separate sheet that I kindly ask them to transfer my refund to bank account with such and such number. I would like to note that getting certificates took me some time since manager was hard to catch to get his signature.
Somewhere in March I sent all the stuff via mail to Cesis (town with ~22 thousand inhabitants in district of which I happen to be registered). The other option was to show up personally during working hours. No other options. And hard copy only.
I called them up in mid June to inquiry about my refund. The lady asked when did I submit my declaration, and I answered that somewhere in March. She said that in such case my declaration has not been inserted in the system yet and that I should call in July, but better in early August due to vacations and stuff. However, luckily enough on 1st of July my refund arrived.
2004
I declared my income in Estonia.
During one evening I logged on to e-Tax Board on internet via internet bank.
The form of declaration already provided my income from the data base of Tax Board (since this data is anyway being provided to Tax Board every time taxes on my salary are paid). I just had to check the data and adjust it a bit.
There was a place to indicate my account number as well via internet, which I also did indicate.
My tax refund arrived on the NEXT day.
Any conclusions?
It seems quite dumb to me to prepare declaration (which I anyway make on computer), to print it out, to send via post, then other person is inserting it in the computer again, and this inserting takes 3 months - not very efficient and very time consuming including post traveling time with registered letters.
Of course, I have no deeper insight what Latvian State Revenue Service is doing and what issues they have on day to day basis, but my impression is that it would be a good idea to make an investment in sound electronic system, which would be capital expenditure now, but would reduce costs (labour costs, cost of manual errors, rent of rooms etc.), increase efficiency and improve control in future. Drawbacks: reduced employment rate as well as state cannot use cheep money (since they do not pay interest for keeping my money for 3 additional months).
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