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Newsletter 2009 January

  • Lithuania

    23-01-2009

    Civil Law and Procedure

    The amendments to the Civil Code have come into force

    On 16 December 2008 Seimas has adopted the Law amending the Civil Code of the Republic of Lithuania. The amendments have been adopted in order to establish better protection of consumers’ rights.

    By the amendments it is established that any written condition of the consumer contract shall have to be put clearly and understandably. In the event of doubt about conditions of the consumer contract, they shall be interpreted in favour of the consumer, except for the cases, when it is sought to forbid further usage of the prepared standard conditions of the contract.

    The amendments have come into force as from 30 December 2008.

    The amendments to the Civil Procedure Code have been adopted

    On 14 November 2008 Seimas has adopted the law amending the Civil Procedure Code of the Republic of Lithuania.

    First of all, the provisions regulating the bailiffs’ activities have been amended. The amendments established that the claim concerning the activities of a bailiff or notary public may be submitted not later than within twenty days from the day the person became aware of or was supposed to become aware of the performance of the disputed activity or the refusal to perform it, but not later than within 90 days from the performance of the disputed activity. The effective wording of the Code establishes shorter terms, i.e. ten days and thirty days respectively.

    Other amendments specify in detail the provisions, regulating the procedure of the execution of judgements, i.e. the provisions concerning the composition, amount and pay order of execution costs and the provisions concerning the order of completion of an executive case.

    The amendments shall come into force as from 1 April 2009.

    Accounting

    Business accounting standards have been approved

    On 17 December 2008 the Director of the Authority of Auditing and Accounting has approved by his orders three business accounting standards: the 15th Business Accounting Standard “Investments in Associates“, the 16th Business Accounting Standard “Consolidated Financial Statements and Investments in Subsidiaries” and the 30th Business Accounting Standard “Related Parties”.

    The new accounting standards have replaced the business accounting standards effective until now under the same titles. In the new standards some of the terms are specified and some of the provisions are clarified. The new business accounting standards do not establish any substantial amendments.

    The Business Accounting Standard “Investments in Associates“ establishes the order of how investments in associates shall be recorded in the investor‘s accounting and presented in the financial statements.

    The Standard “Consolidated Financial Statements and Investments in Subsidiaries” establishes the order of preparation of consolidated financial statements of a group of entities and regulates the accounting of investments in subsidiaries and its presentation in the parent entity’s separate financial statements.

    The 30th Business Accounting Standard “Related Parties” defines who are considered to be the related parties, how and what information about related parties shall be provided in the explanatory note of the financial statements.

    The new business accounting standards shall be effective for financial statements covering periods beginning as from 1 January 2009 and later. The new standards may also be applied while preparing the financial statements of former reporting periods.

    Gaming

    The Law on Lottery and Gaming Tax has been amended

    On 19 December 2008 Seimas has adopted the Law amending the Law on Lottery and Gaming Tax.

    As from now on legal entities, operating table games and gaming machines shall pay a larger fixed fee for every gaming machine indicated in the gaming licence, for example the fee of LTL 800 per gaming machine of category A shall be paid monthly, meanwhile before the amendments came into force the fee of LTL 1800 had to be paid quarterly; the fee of LTL 300 per gaming machine of category B shall be paid monthly, meanwhile until now the fee of LTL 600 has been paid quarterly.

    The rates of tax applied for operators of lottery, bingo, totalisator and betting have not been amended. The operators of lottery shall keep paying the tax of 5 per cent from the total value of the distributed tickets, and the operators of bingo, totalisator and betting – the tax of 15 per cent from the total amount of proceeds after deducting the amount of prizes actually paid out.

    The amendments to the Law have come into force as from 1 January 2009.

    Other News

    2008 November-December issue of the independent journal Lithuanian Business Review has published the article by the Associate Partner Rimtis Puišys Structuring the M&A Transaction in Lithuania. Lithuanian Business Review journal covers the top business events in Lithuania and presents analytical insights into the market specifics.

    For several years already the Law Firm Eversheds Saladžius has been cooperating with the Global Competition Review on Getting the Deal Through legal series. The freshly new issue is the Real Estate 2009 publication, covering real estate in 31 jurisdictions worldwide. Associate partner of Eversheds Saladžius Aušrys Šliavas has contributed to the edition by reviewing the environment for real estate in Lithuania, focusing on issues relating to legal requirements, foreign investors, legal liability, organisational formalities and many other relevant topics.

    BCC Paper issued by the British Chamber of Commerce in Lithuania published information on the Conference organised by Eversheds Saladžius in cooperation with the Lithuanian Economic Development Agency and Lithuanian Embassy in the UK Lithuania: Manufacturing Oasis. A brief article reviews business seminar and mentions Eversheds as platinum sponsor of the event. The event took place on 15 October 2008.

    Lithuanian construction market newspaper Statybu žinios published the article on land lease issues in Lithuania. The article was presented by Eversheds Saladžius Associates Julius Vainoris and Ona Kviliute.

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