(d) APPORTIONMENT BETWEEN PARENT ENTERPRISE AND SUBSIDIARIES
Subsidiary companies have a legal existence apart from the companies which created them. Accordingly, subsidiaries organised in Latvia by foreign companies are taxable like any other Latvian company.
If it appears, however, that these subsidiaries are transferring their profits to the foreign enterprise on which they depend, their accounts may be corrected and, if essential to a fair assessment, their profits may even be computed empirically. This indeed is only in accordance with ordinary law.