Business Support – Received a grant, bought a Porsche, and received salary compensation

05/27/2021 Business, Lithuania, Sports



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Photo by Judita Grigelyts (V)

According to the State Tax Inspection (STI), 148 companies that received state subsidies due to the impact of the pandemic bought a car worth more than 50,000 euros. 32 mons bought Bentley, Maserati, Porsche, Lamborghini, Rolls-Royce cars.

Complemented by the second section

These data were presented to the Seimas Budget and Finance Committee by STI and Invega.

There is envy when companies officially attracted to COVID-19 have taken advantage of the tax deferred, received a reduced subsidy for employee retention, received a generous additional state subsidy for companies and acquired a new luxury worth € 100,000 in Range Rover SUV. Mykolas Majauskas, president of the Seimas Budget and Finance Committee, points out in the Committee’s report.

According to M. Majauskas, the luxury car was registered as a truck, possibly to recover and pay value added tax (VAT).

And to keep the ground from showing up, apply for additional state support for businesses to cover the lease payments for the luxury car purchased. And I got the support. According to the signed agreement, the payers paid additionally for the purchase of this car until 2024. It will compensate 95% of the salary, says M. Majauskas. For Kakam, these activities can turn into business. In my opinion, it is a series of cynicism.

According to him, such a case is not isolated. The Committee is aware of the situation when a company, which was also affected by a pandemic, received support and bought a Porsche Cayenne for more than € 100,000 for the company’s needs. Also under the business support contract until 2025. 95% of the salary will be reimbursed.

These are just a few of the many examples of the treatment of taxpayers’ money. As I understand it, it is time for the STI to adopt principled control measures and knock on all the doors of companies that have used the support of teachers to buy luxury sports cars, says M. Majauskas.

Premier: the practice is not new

After noting that some Lithuanian companies affected by the quarantine were receiving state support and buying a luxury car, Prime Minister Ingrida stated that this practice of buying private cars on behalf of companies is not new in Lithuania.

ia is not a case found only during a pandemic. It is not a big secret that there are businessmen in Lithuania who are trying to declare their private needs as business needs, in order to use the purchase tax deduction, to use the value added tax deduction, Prime Minister al Seimas told. Thursday.

According to her, deductions from the value added tax of passenger cars are not required by law, which is why there is such a curious case when luxury cars are declared as cargo.

This is probably a double bad, and I think that the State Tax Inspection, when carrying out control actions, has to investigate this type of case, added I. the company.

The Seimas Budget and Finance Committee of the State Tax Inspectorate asks if that luxury property is used for private needs or if tax deductions and state support are abused. If this is confirmed, taxes will have to be paid and state support will be reimbursed.

M. Majauskas did not reveal the name of the company, but according to him, it is a small company with 20-30 employees.

Rta Asadauskait, communication chief of STI, BNS stated that the Inspection could not reveal the name of a specific company.

The STI will assess whether the subsidy received by the company has been used for its intended purpose, that is, to ensure the liquidity of the company. If it is established that the support provided to the company has been misused, the company will have to reimburse it, BNS told the STI representative.

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