Aizkraukles Banka — a Leading Corporate Income Taxpayer

June 21, 2005 / Banking

The Latvian State Revenue Service has declared that the stock company Aizkraukles Banka (AB.LV) was one of the 10 largest payers of the corporate income tax in 2004.

Other companies to be on the list along with Aizkraukles Banka are Latvijas Mobilais Telefons, Tele2 (both mobile phone companies), Latvian State Forests (the state-owned forestry agency), Lattelekom (a fixed telephone service provider), Hansabanka, Parex Banka, SEB Latvijas Unibanka (all of them banks), Latvijas Gaze (the main supplier of natural gas in Latvia), and Rietumu Banka (a bank).

«It is very nice to see that our clients support our work and that the state has offered its recognition, too. We are an organic component in the socio-economic development of the state. I think that taxes are the cornerstone for the country’s social welfare system, they provide a guarantee of competitiveness. This indicates stability and good potential for further growth,» says Aizkraukles Banka (AB.LV) co-owner and deputy board chairman, Olegs Fils.

Aizkraukles Banka paid a total of Ls 4.021 million in taxes in 2004 — 2.5 times more than in 2003. The amount of money paid in corporate income taxes increased some six times over during the course of the year, amount to Ls 1.85 million. In 2002, by comparison, Aizkraukles Banka paid a total of Ls 2.9 million in taxes, including Ls 1.8 million in corporate income tax.

The list of major taxpayers that was prepared by the State Revenue Service does not include companies which have been guilty of major administrative violations or which have been found to be avoiding taxes.

Aizkraukles Banka is one of the five leading commercial banks in Latvia. It has equity capital of Ls 15 million, and it has issued 100,000 shares. The British banking journal The Banker recently published a list of the 50 most rapidly growing banks in Central Europe, and Aizkraukles Banka was in 30th place on that list.