The Lithuanian Ministry of Finance has published a draft law on 9 October 2024, amendments to the Code of Administrative Offences, aimed at imposing administrative penalties for failure to submit required information. These changes are designed to enhance compliance with the Law on Tax Administration by holding individuals and corporate managers accountable for their actions regarding information reporting.

If approved, these amendments are set to take effect on 1 January 2025.

The amendments stipulate that third parties required to provide information to the tax administrator must retain documentation justifying their submission or non-submission decisions for the current year and the preceding five years. Failure to maintain this evidence could result in fines of EUR 100 to EUR 1,000 for individuals and EUR 200 to EUR 1,500 for corporate managers. Repeat offenses would attract fines ranging from EUR 200 to EUR 2,000 for individuals and EUR 400 to EUR 3,000 for managers.

Further violations, such as the late submission or incomplete reporting of account information, could lead to fines from EUR 600 to EUR 1,500 for initial breaches, increasing to EUR 1,200 to EUR 3,000 for repeat violations. Notably, the absence of any reporting on opened or closed accounts could incur fines between EUR 1,800 and EUR 3,600, with escalating penalties for repeat offenses.

The proposed amendments also address failures to comply with verification procedures and accurate data provision to the State Tax Inspectorate, imposing fines from EUR 1,800 to EUR 3,600 for initial violations and higher fines for repeat breaches. Other related infractions could lead to fines ranging from EUR 500 to EUR 1,300 for initial offenses and EUR 1,300 to EUR 4,000 for repeat offenders. Violations concerning the handling of payer accounts could incur fines of EUR 1,820 to EUR 3,900, escalating to EUR 3,000 to EUR 5,000 for repeat offenses.

Under the proposed amendments, individuals who fail to meet domestic information submission requirements could face fines ranging from EUR 200 to EUR 3,000. For managers of legal entities or responsible parties, fines would range from EUR 300 to EUR 4,000. Repeat offenders would incur higher penalties, with fines for individuals escalating to between EUR 400 and EUR 6,000, and for managers, between EUR 600 and EUR 6,000.