Official Translation

Official Translation Official Translation REPUBLIC OF LITHUANIA LAW ON THE ACCOUNTING FOR THE LAWFUL ACQUISITION OF PERSONAL PROPERTY AND FOR THE ORIGIN OF INCOME June 26,

1. No. VIII - 301 Vilnius ARTICLE
2. Objective of the Law This law shall regulate the obligation of persons, suspected or charged with having committed a serious crime for profit, their near of kin or family members and other persons, linked with the accused or suspect, to provide an accounting for the lawful acquisition of their property and for the origin of income. ARTICLE
3. The Basic Definitions in This Law.
4. Persons suspected or accused of having committed a serious crime for profit means persons who in the course of a criminal process have been adjudged as suspects or accused of having committed serious, crimes for profit stipulated in part 2 of Article 81 of the Criminal Code, and also persons suspected or accused of founding criminal association or participating in the activity thereof, even if no indications of a crime for profit are present.
5. A serious crime for profit means a criminal offence indicated in Part 2 Article 81 of the Criminal Code against property and state service, economic procedure, finance, and also any criminal offence indicated in Article 81 part 2 of the Criminal Code, as a result of which the suspect or the accused, his near of kin or family members have received money, valuable assets or other benefits involving assets.
6. Near of kin and family members means persons, stipulated in Article 305 of the Criminal Code.
7. Other Persons, linked with the accused or the suspect means persons linked with the suspect or the accused through property ties in connection with the acquisition of property and income, an accounting for the lawful acquisition whereof is required in accordance with this Law.
8. Accounting for the Lawful Acquisition of Personal Property and for the origin of income means proof of a lawful acquisition of property and of the origin of income, in accordance with the form established by laws, based upon transactions that have been formed or documents having legal power. Article
9. The Basis for Designation of Obligation of Accounting for the Lawful Acquisition of Personal property and for the Origin of Income
10. The obligation of accounting for the lawful acquisition of property and for the origin of income in making a declaration of one’s property and income in accordance with the Law on Declaration of the Property and Income of Residents and the Law “On the Declaration by Residents of the Republic of Lithuania of Income Used in the Acquisition of Valuable Property or Other Acquired or Transferable Funds,” may be assigned in accordance with the procedure established by the Government, to a person suspected or accused of having committed a serious crime for profit, or a close of kin or member of the family of such a person, or other persons linked with the suspect or the accused, when based upon the criminal case, there exists sufficient evidence to suspect that these persons administer (have administered), use (have used) illegally acquired property or income or dispose (have disposed) in such or have transferred the property or income acquired in this manner, to other persons.
11. Should a person who is obliged to provide an accounting for the lawful acquisition of property and for the origin of income, have made a declaration regarding his property and income according to the laws of the Republic of Lithuania, it shall not be necessary to declare the acquisition of property and income for the time periods indicated in the declaration. In this instance, the person shall inform the corresponding territorial tax inspectorate in writing, relevant to which state tax inspectorate the declaration has been submitted to. ARTICLE
12. The Procedure of Obligation to Provide an Accounting for the Lawful Acquisition of Personal Property and for the Origin of Income
13. An officer investigating a criminal case concerning criminal offences indicated in part 1, Article 2 of this Law, must inform the chief prosecutor of the local county court where the preliminary investigation is conducted and the General Prosecutor’s Office at the Supreme Court of Lithuania, that the basis stipulated in Article 3 of this Law is present. Having examined the materials (data) of the criminal case, the chief prosecutor of the county prosecutor’s office, shall address a statement to the judge of the criminal department of the local county court where the preliminary investigation has taken place, regarding imposition of an obligation to persons indicated in parts 1, 3 and 4 of Article 2, of this Law, to provide an accounting for the lawful acquisition of personal property and for the origin of income. The Prosecutor General or his deputy may also submit a statement of this type.
14. The statement shall indicate: 1) first name, surname, position of the person who submitted the application; 2) first name, surname of the person to whom it is proposed to assign an obligation to provide an accounting for lawful acquisition of personal property and for the origin of income; 3) material evidence in the criminal case, providing the basis of obligation to provide accounting for the lawful acquisition of personal property and for origin of income.
15. Having decided to satisfy a prosecutor’s application, the judge must adopt a decision to task a person to provide an accounting for the lawful acquisition of personal property and for the origin of income, and having refused to satisfy the application, he must decide to relinquish tasking the person to provide an accounting for the lawful acquisition of personal property and for the origin of income. 4.The persons who have been assigned with accounting for the lawful acquisition of personal property and for the origin of income, shall be acquainted with the judge’s ruling and must sign for it.
16. The person regarding whom the decision has been taken on providing an accounting for the lawful acquisition of property and for the origin of income, or the defence lawyer representing this person, and also the prosecutor, who has refused to satisfy an application, shall have the right to appeal the judge’s decision according to the procedure established by laws. ARTICLE
17. Evidence Regarding the Obligation to Provide an Account for the Lawful Acquisition of Personal Property and for the Origin of Income The person who has been obligated to provide an accounting for the lawful acquisition of personal property and for the origin of income, must within 30 days of the ruling issued by a judge as stipulated in part 3 of Article 4, becoming valid, must submit to the corresponding territorial state tax inspectorate a declaration of property and income and documents substantiating the lawfulness of acquisition of personal property and for the origin of income. ARTICLE
18. The Procedure of Obligation of Accounting of Lawful Acquisition of Personal Property and for the Origin of Income
19. The judge’s ruling to obligate a person to provide an accounting of the lawful acquisition of personal property and for origin of income shall be transferred to a territorial tax inspectorate, on whose territory is the residence and (or) the location of the property of the obligated person. Having received this ruling, the territorial state tax inspectorate shall warn the person in writing, within a period of 3 days, that the latter must submit a property and income declaration or annual property and income declarations and documents providing an accounting for the lawful acquisition of personal property and for the origin of income.
20. The property of persons who have been obligated to provide an accounting for the lawful acquisition of property and for the origin of income, may be attached or their property rights may be temporarily limited according to the procedure established by the Criminal Code.
21. The territorial state tax inspectorate, having verified within a 30-day period, the property and income declarations of persons obligated to account for the lawful acquisition of property and for the origin of income, and submits them and the conclusion approved by the State Tax Inspectorate at the Republic of Lithuania Ministry of Finance and also information relevant to imposed sanctions, to the corresponding prosecutor.
22. Should a thorough investigation be required of the persons obligated to provide an accounting of the lawful acquisition of personal property and for the origin of income, the territorial state tax inspectorate, having co-ordinated with the State Tax Inspectorate at the Ministry of Finance of Lithuania, shall inform the prosecutor of this, who in turn shall initiate additional investigation or revision if the situation warrants it. ARTICLE
23. Legal Consequences for Failure to Account for the Lawful Acquisition of Personal Property and for the Origin of Income or to Submit Declaration of Personal Property and Income
24. Transactions in relation to the acquisition of personal property and income, drawn up after June 1, 1994 and those whose lawfulness has not been substantiated by persons, shall be construed as transactions, formed while knowingly harbouring an intention contrary to interests of society of the Republic of Lithuania and shall be invalid. The consequences stipulated in Article 48 of the Civil Code shall be applied to a transaction which has been acknowledged by the court as invalid as result of civil suit instituted by the prosecutor.
25. Should the declared income fail to be based upon transactions drawn up according to the form stipulated by laws or documents having legal power, a penalty equivalent to 100 per cent of the unsubstantiated sum’s amount, shall be imposed per decision of the chief of the territorial state tax inspectorate, except in instances wherein the consequences stipulated in Article 48 of the Civil Code has been applied. This penalty shall be exacted in accordance with the procedure established by the Law on Tax Administration. The imposition of this penalty shall not exempt from the taxes, penalties and interest stipulated by laws.
26. The failure to submit a declaration of property and income by the term stipulated in Article 5 of this Law, following a written admonition by the territorial state tax inspectorate shall incur criminal responsibility according to Article 325 of the Criminal Code. I promulgate this law passed by the Seimas of the Republic of Lithuania. PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS