State Revenue Service halts cash-in-hand wage payments at Riga construction company — 12,270 euros seized
The State Revenue Service has stopped cash-in-hand wage payments at a plumbing and heating systems installation company. 12,270 euros were seized and two persons detained.
State Revenue Service stops cash-in-hand wage payments at specialised Riga construction company
The State Revenue Service (SRS) in May of this year referred criminal proceedings to the State Revenue Prosecutor's Office against a company director and an employee for cash-in-hand wage payments totalling approximately 12,000 euros, according to lvportals.lv.
Both persons were detained on the very day when the sum was scheduled to be paid out to the company's employees.
Cash discovered during search
Criminal proceedings were initiated in July 2025. SRS officers, whilst carrying out operational measures and procedural actions, halted the illegal wage scheme at a company engaged in the installation of plumbing systems, heating and air conditioning equipment.
During a search of the company's office premises in Riga, cash funds were discovered that had been intended for unrecorded wage payments. A total of 12,270 euros was seized and placed under arrest.
Criminal proceedings were initiated on the basis of signs of a criminal offence provided for under Article 217¹ and Article 15, Part 4 of the Criminal Law. Both detained persons have the right to legal representation.
Social protections at risk
The SRS reminds that in the case of cash-in-hand wages, social contributions are either partially or fully not paid on behalf of workers. This directly affects their ability in the future to receive an old-age pension, as well as other state-provided social services.
In accordance with Article 19 of the Criminal Procedure Law, no person shall be considered guilty until their guilt has been established in the manner prescribed by law.
The SRS is a direct public administration institution under the supervision of the Minister of the Interior, whose task is to detect, prevent and investigate criminal offences in the field of state revenues and customs, protecting the economic interests of both Latvia and the European Union.
Source: Google News LV — Crime (lv)