Increased tax control or business risk? The Lithuanian government is promoting amendments to the Tax Administration Law, which allow the suspension of companies for a period of up to 180 days through the courts. Tax losses are expected to be reduced by 200 million euros, but the impact on business has not been estimated. The supervision will determine measures based on the "real" threat to the budget, starting with 31,200 euros of damage. The amendments are introduced to combat tax evasion, but the criteria for restrictions seem vague. Court decisions must be made within three days only, which puts companies at a disadvantage. They are prohibited from making transactions, and this may damage their reputation. Such vagueness creates the ground for abuse and carries risks for business sustainability, which in turn may adversely affect the economic situation in the country.

Increased tax control or business risk? The Lithuanian government is promoting amendments to the Tax Administration Law, which allow the suspension of companies for a period of up to 180 days through the courts. Tax losses are expected to be reduced by 200 million euros, but the impact on business has not been estimated. The supervision will determine measures based on the "real" threat to the budget, starting with 31,200 euros of damage. The amendments are introduced to combat tax evasion, but the criteria for restrictions seem vague. Court decisions must be made within three days only, which puts companies at a disadvantage. They are prohibited from making transactions, and this may damage their reputation. Such vagueness creates the ground for abuse and carries risks for business sustainability, which in turn may adversely affect the economic situation in the country.