Olainfarm                                                     23.02.2005.



Republic of Latvia took positive decision concerning prolongation of payment 

term of JSC „Olainfarm”



On February 22nd, 2005 Cabinet of Ministers of Republic of Latvia took 

positive decision concerning prolongation of payment term of JSC „Olainfarm” 

tax debt in amount of 1,18 mil. Ls for seven years. At the same time penalty 

of the company in amount of 0,56 mil. Ls will be written off.

It should be reminded that question of tax debt arrangement has always 

been one of the most actual for JSC „Olainfarm”. Each year since year 2003 the 

company has made tax payments that even have exceeded a little bit the sum 

of taxes calculated for corresponding period. Unfortunately, due to joining 

European Union and noticeable financial investments into production process for 

introduction of Good Manufacturing Practice EU standards it has been impossible 

until now to repay tax debts created in previous periods. Foreseeing mentioned 

situation in 2004, JSC „Olainfarm” has turned to government of Republic of Latvia 

and European Commission with request for the aid to the company by prolonging 

tax debt payment term. Mentioned institutions took a decision to support the company. 

After that the documents have been submitted for review of the Cabinet of Ministers.

In accordance with decision taken by the Cabinet of Ministers on February 22nd, 

starting with January of year 2006 JSC „Olainfarm” shall each month, in addition to 

current tax payments, provide prolonged tax debt repayment in accordance with schedule 

approved by the Cabinet of Ministers.

Comment by the Chairman of the Board of JSC „Olainfarm” Mr.Valerijs Maligins:

In the name of JSC „Olainfarm” I would like to express gratitude to the government of 

the Republic of Latvia and European Commission for their trust and support. This 

decision will have a positive influence on activity of JSC „Olainfarm”, because 

existence of tax debts in the balance of the company was the main obstacle for 

attraction of additional investment from strategic investors as well as credit 

institutions. Besides that and despite noticeable annual tax payments in amounts of 

approximately 1,5 mil. Ls, the company was still mentioned in the list of 10 biggest 

tax-dodgers, which had a negative influence on the reputation of the company, as well 

as delayed issue of some permissions and licenses necessary for activity of the company.

Decision taken by the Cabinet of Ministers is mutually beneficial because state budget

will receive scheduled payments of prolonged tax debts, but the company will continue 

to grow by creating new jobs as well as by providing higher amount of current tax 

payments into the state budget.             

   





JSC “Olainfarm”

President

V.Maligins



Prepared by V.Zuka-Nikulina

Ph.: 7013870