For tax evasion that caused significant damage to the state, a man is obliged to reimburse the state 689,000 euros, the prosecutor's office reported.
The accused pleaded guilty in a criminal case for conducting business activities on a significant scale without the required legal permission and without paying taxes. The verdict of the Riga City Court came into effect on January 20 of this year.
As a result of the work of the State Police and the Prosecutor's Office for Tax and Customs Affairs, the guilty party was held accountable, and the damage caused to the state was recovered. In favor of the Latvian state as the injured party, represented by the State Revenue Service (SRS), the accused is obliged to pay compensation in the amount of 609,100.32 euros. An additional 80,000 euros was reimbursed before the verdict was issued.
The accused was engaged in business activities in the field of distributing electronic smoking devices and liquids for refilling them. For the purpose of further sale and without a special permit (license) from the approved warehouse holder, he stored excise goods in one of the stores in Riga. Until November 26, 2022, the accused stored 38,535 disposable electronic cigarettes, 53,927 containers with liquids for refilling of various volumes, as well as 3,171,130 ml of liquid for electronic cigarettes there. The products were sold to consumers in Latvia through remote contracts.
Furthermore, the accused intentionally and without valid reasons failed to calculate and pay the excise tax amounting to 689,100.32 euros, acting with the intent to evade payment.
The volume of seized liquids was record-breaking — it would have been enough to refill approximately two million electronic cigarettes.
The prosecutor's office also notes that if such products had reached consumers, they would have caused harm not only to the interests of the state economy but also to people's health.
Considering the admission of guilt and remorse, partial compensation for damages, and the agreement to continue payments, as well as the fact that the accused had not been previously prosecuted and utilized the right to cooperate provided by the Criminal Procedure Law, the prosecutor entered into a plea agreement with him.
The agreement was approved by the verdict of the Riga City Court on January 7, 2026. The man was sentenced to community service for 415 hours and was deprived of the right to engage in commercial activities in the field of excise goods for a period of four years and seven months.
