Ivars Grunte on future status of law firms

08.04.2015 Ivars Grunte on future status of law firms

On April 7, 2015, Ivars Grunte provided his professional opinion on the theme of the week in journal “Jurista Vārds” – Whether the Bar awaits quality changes.

Ivars Grunte stated that there had been a productive dialogue with the State Revenue Service regarding the methodological guidelines on tax issues for law firms. Various law firm models and their influence in the field of taxation had been analysed. He also explained the possible changes to Regulation No. 150 of the Cabinet of Ministers of the Republic of Latvia “Regulations regarding the Registration of Taxpayers’ and Taxpayer Units with the State Revenue Service” that provides a three-year transitional period after which law firms will be excluded from the range of subjects that can be registered as taxpayers with the State Revenue Service. Ivars Grunte forecasted that there would be amendments necessary to the Bar Law that would not restrict attorneys at law and law offices from becoming business persons and at the same time maintaining attorneys and their assistants (also the ones who have united in law offices) as independent providers of legal assistance in the status of self-employed persons.

Ivars Grunte admitted that it could be the right solution given that there had been crucial changes since the first law firms were registered with the Latvian Council of Sworn Advocates in 1990. Nevertheless Ivars pointed out that serious discussion among attorneys at law would be necessary before the adoption of decision or future strategy, as it can essentially influence the accounting and taxation of the law firms.

“We are optimistic about the future,” added Ivars Grunte.