REPUBLIC OF LITHUANIA                                     
                               Law                                              
                    On State Tax Inspectorate                                   
                                                                                
                            Chapter 1                                           
                                                                                
                       General Regulations                                      
                                                                                
                                                                                
     Article 1.The  assessment and  paying  of  taxes  and  other               
statutory payments to the state and local government budget shall               
be controlled  by the  State Tax  Inspectorate of the Ministry of               
Finance of  the Republic of Lithuania and by tax inspectorates of               
towns and regions.                                                              
                                                                                
     Article 2.  The functioning  of the  State Tax  Inspectorate               
shall be  organised and managed by the Ministry of Finance of the               
Republic of Lithuania.                                                          
                            Chapter 2                                           
                                                                                
          The Functioning of the State Tax Inspectorate                         
                                                                                
                                                                                
     Article 3.  The State Tax Inspectorate shall:                              
     1) take  stock of  the payers of taxes and other payments to               
the budgets;                                                                    
     2) control  the assessment  and paying  of taxes  and  other               
payments to the budgets and shall refund overpayments;                          
     3) carry  out the resolutions of local governments concerning              
the determination  of local collections of taxes, the provision of              
credits on taxes, collections and deductions to their budgets;                  
     4) control  the distribution  of taxes  and payments  to the               
budgets;                                                                        
     5) organize  the  registering,  evaluation  and  selling  of               
confiscated, abeyant  and inherited  by the  state  property  and               
treasures.                                                                      
     6) inspect  whether economic  subjects do  not violate  laws               
regulating loan agreements.(Amended 9 November 1993)                            
                                                                                
                            Chapter 3                                           
                                                                                
              Rights of the State Tax Inspectorate                              
                                                                                
                                                                                
     Article 4. The officials of the State Tax Inspectorate shall               
be authorised:                                                                  
     1) to  investigate documents  of legal  and natural  persons               
pertaining to  the computation  and paying  of  taxes  and  other               
payments to the budgets, to obtain information bearing upon these               
issues;                                                                         
     2) to  receive information  and  copies  of  documents  from               
enterprises  and   institutions,  including   banks   and   other               
institutions of credit and finance pertaining to the property and               
income of a legal or natural person under investigation necessary               
for exercising their duties;                                                    
     3)  on   presenting  office  certificate  to  enter  working               
premises of  legal and  natural persons,  to inspect manufactured               
production and materialtechnical supplies used in production. The               
officials of  the State  Tax Inspectorate   shall  also  exercise               
their right  in cases  when  residential  premises  indicated  on               
registration are  used for  production purposes and for receiving               
income;                                                                         
     4) to  take out for a limited period of time, up to 30 days,               
the documents  of legal  and natural  persons testifying  to  the               
understatement   of income and other objects liable for taxation,               
providing them with the list of taken out documents;                            
     5)  to  issue  instructions  to  legal  and  natural  persons              
mandatory   to be observed on issues concerning the assessment and              
payment of taxes and other payments to the budgets;                             
     6) to  draw up the records of administrative violation of law              
in such  legal cases  that are within  the competence of the State              
Tax Inspectorate;                                                               
                                                                                
     Article 5.  In addition to the rights under Article 4 of this              
law, Chief  of the State Tax Inspectorate  and his deputy shall be              
also authorised:                                                                
     1) to  draw out  of bank  accounts of  enterprises taxes not               
paid at the time prescribed therefor and penalties established by               
laws as  well as other sums due to be paid to the budgets without               
suing for claims;                                                               
     2)  to  give  orders  to  banking  institutions  to  suspend               
payments and remittances from the bank accounts of enterprises if               
they failed  to file  a return of taxes and other payments to the               
budgets with  the State  Tax Inspectorate,   refuse access to tax               
records  for   investigation  purposes,   or  when   during   the               
investigation facts  of purposeful  understatement of  income  or               
erroneous computation of taxes are uncovered;                                   
     3) to  impose  administrative  penalties  according  to  the               
procedure established by law.                                                   
     4) to  present proposals  to the  managers of the Register of              
Enterprises to  cancel the  registration of  an enterprise  in the              
procedure eestablished  by laws for the violations provided for in              
the laws of the Republic of Lithuania.( Amended 9 November 1993)                
                                                                                
                                                                                
                            Chapter 4                                           
                                                                                
     Responsibility of the State Tax Inspectorate Officials                     
                                                                                
     Article 6.  Claims of  legal  and natural persons concerning               
the actions  of the  State Tax  Inspectorate officials  shall  be               
considered by  Chief of  the Inspectorate   or his deputy whereas               
claims against  the actions  of the Chief and his deputy shall be               
considered  by  the  Ministry  of  Finance  of  the  Republic  of               
Lithuania. If  the applicant  disagrees with  the decision of the               
Ministry of  Finance, he  shall have  the right to apply to court               
within 10  days   from the  date he  has been  notified   of  the               
decision.                                                                       
                                                                                
     Article 7.  Legal actions shall be instituted  against heads               
and officials  who have  violated   laws or  rights of  legal and               
natural persons according to the procedure established by laws.                 
                                                                                
                                                                                
                                                                                
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                 V. Landsbergis                            
                                                                                
Vilnius                                                                         
26 June 1990                                                                    
No. I324