Why accurate tax calculation matters

Tax calculation is more than completing a return. The outcome depends on the substance of a transaction, supporting documents, the applicable tax treatment and how the transaction is recorded in the accounts.

A reliable process

  • Obtain and review source documents on time
  • Reconcile accounting data with bank accounts and other records
  • Review unusual and material transactions before filing
  • Document decisions and the reasoning behind them
  • Monitor changes in legislation and guidance from the Latvian State Revenue Service

If an error is found

It should not be left until an inspection. First establish its amount and the affected period, then assess whether a return must be corrected and whether additional payments may arise. The appropriate action depends on the circumstances and current requirements.

Regular internal review reduces errors and gives management more reliable financial information.