Public procurement: Are some employer tax evaders more equal than others?

Amendments to the Public Procurement Law require contracting authorities to rule a bid’s price unjustifiably low if the employees of a tenderer or a subcontractor earn less than 80% of the average hourly rate in a particular occupation. That is, the contracting authority will assume that such bidders evade employer taxes. Katrine Plavina argues that a potential assessment of the Constitutional Court will depend on the application of the new amendments. However, if nothing will change, the contracting authorities will not exclude from procurements those bidders, who in accordance with the logic of the provisions, are evading employer’s tax but nevertheless pay more than 80% of the average hourly rate. Click here to read the full article in Latvian published in legal weekly Jurista Vārds.

by Katrīne Pļaviņa, Senior Associate, Latvia

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