YEREVAN, MAY 30, . The National Security Service adjunct to the Prime Minister of the Republic of Armenia, continuing the consistent struggle against corruption and economic crimes, has revealed in the result of operative-investigative measures and investigative actions undertaken within the framework of its functions, a long-term scheme (developed and implemented by the largest Armenian entities for tax avoidance mechanism), which has been used for hundreds of lands founded by the name of the kings, actually engaged in false entrepreneurship.

An official from the NSS press office told Armenpress that according to the preliminary data, “Alex Holding” LLC, being a taxpayer organization, has received an agreement with the former RA SRC ex-Prime Minister with the management of the sale of agricultural products purchased from farmers through the Yerevan City supermarket chain, with the establishment of individuals named by different people, whose sales turnover limit is 115 million AMD, yerel instead of 20% VAT and income tax paid only 2% of turnover tax. Then, the management team of “Alex Holding” company until 2018. Within the period of May, 461 NGOs have been registered in the Yerevan City supermarket chain, mostly in the same notary as the employees of their company, as well as by their family members and acquaintances. At the same time, some of them were registered without the knowledge of the citizens, using their identification documents or their copies stored in “Alex Holding” LLC. When the turnover of the private sector reached 115 million drams, the activity was terminated or liquidated, after which newly registered other Private Entities were used.

Taking advantage of the arbitrary and illegitimate opportunity provided by the former SRC’s former management, the “Alex Holding” LLC, with the exception of local agricultural products, also has carried out many other products, as well as imported agricultural products for which Only the turnover tax has been paid.

According to preliminary calculations, the total sales turnover with 461 Private Societies amounted to more than 40 billion drams, of which 2% was payable, whereas in case of legal activity, “Alex Holding” Company had to pay 20% VAT and profit tax :

The exact amount of damages caused to the state will be calculated by the professional (tax) audit and the forensic expertise prescribed in the prescribed manner on the activities of “Alex Holding” LLC.

In connection with the incident, a criminal case has been initiated under Article 205 (Part 2) of the RA Criminal Code (“Particularly large taxes, duties or other mandatory payments”) and Article 189 (Part 3 of the Criminal Code “).

Within the framework of the criminal case, 10 searches were carried out at the same time, as a result of which confiscated accounting documents, electronic storage media, other documents proving the case, responsible employees of “Alex Holding” LLC, the notary carrying out the registration of private entrepreneurs, a part of citizens whose names are registered by the Private Entrepreneurs.

Additionally, according to the available reliable data, the 11 senior organizations dealing with network trading have been provided with the method described by the former SRC leadership, which has obviously created unfavorable and unequal competitive conditions for many other value-added companies selling agricultural products. Within the framework of the criminal case, testimonial activities will be carried out against these 11 companies, so the latter are recommended to recalculate the amount of unpaid taxes as described and to provide relevant information to the preliminary investigation body to resolve the issue of compensation for damages.

The preliminary investigation continues, measures are being taken to find out all the circumstances important to the case and to identify other persons and to compensate for the damage done.

The National Security Service urges the business entities to engage in activities solely in the so-called “white” field and refrain from using suspicious schemes and mechanisms to avoid tax evasion, taxes or other mandatory payments while at the same time warns that the relevant units of the National Security Service within the jurisdiction and exclusively by law