tax Archives

For a long time at Yerevan City, a large mechanism of tax evasion and false entrepreneurship has been used. Criminal proceedings have been instituted

May 30, 2018 by administrator

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

Palestine, Jordan, Lebanon slam Israeli tax, land grab plans targeting churches

February 27, 2018 by administrator

Pilgrims and journalists gather in the yard of the Church of the Holy Sepulchre in Jerusalem al-Quds’ Old City on February 25, 2018. (Photo by AFP)

Jordan, Lebanon and Palestine have spoken out against Tel Aviv’s tax and land grab plans targeting churches in Jerusalem al-Quds, with Beirut and Amman describing the measures as a violation of international regulations.

The Jerusalem al-Quds municipality recently canceled a tax exemption it had granted church-owned commercial properties in the Israeli-occupied city.

It also announced plans to start collecting 650 million shekels (over $186 million) in tax from 887 properties, which have no houses of prayer, and foreclosing the bank accounts of the Armenian, Catholic and Greek-Orthodox churches.

In another controversial development, Israeli cabinet ministers are studying a bill to expropriate land in Jerusalem al-Quds that churches sold to private real estate firms in recent years.

The new tax policy and the proposed land grab law led the heads of the Church of the Holy Sepulchre, considered one of the holiest sites in Christianity, to shutter its doors until further notice due to an Israeli “systematic and unprecedented attack against Christians.”

Israeli plans ‘breach international law’

Reacting to Israel’s measures on Monday, Jordan, the custodian of Muslim and Christian holy sites in Jerusalem al-Quds, expressed “full solidarity” with the churches in the city.

Jordanian government spokesman Mohammad al-Momani said the Israeli moves “violate international and humanitarian laws,” calling on the Tel Aviv regime to “immediately reverse the decisions taken against churches.”

Additionally, the Lebanese Foreign Ministry said the new Israeli measures fall within the framework of ongoing Israeli attempts to change Jerusalem al-Quds’ legal and historical status quo.

“These systematic Israeli measures against churches in the holy lands and its daily assault on the sanctity of al-Aqsa Mosque pose a threat to the Christian and Islamic presence in al-Quds,” the ministry said in a statement.

“The Israeli attacks on the holy sites constitute a blatant violation of all international laws and conventions,” it added.

The ministry further described the closure of the Church of the Holy Sepulchre as a “a resounding shout to the international community and all international legal institutions about the need to put limits to Israel’s intransigence and its violation of the sanctity of Christian and Islamic sites in al-Quds.”

Lebanon’s President Michel Aoun also said the new tax policy of “the Israeli occupation authorities” is “in contravention of international laws and conventions.”

Aoun stressed that he considers the move “a deliberate targeting of the remaining Christian presence” in the occupied territories and violating “the ethnic and religious rights of all non-Jewish [people] in order to achieve all aspects of its racist project.”

Meanwhile, Yousif al-Mahmoud, a Palestinian Authority spokesperson, said the Israeli measures constitute a new act of aggression targeting Jerusalem al-Quds, the Palestinian people and their holy sites.

He also urged the international community to intervene to “stop Israeli practices.”

Israel lays claim to the whole Jerusalem al-Quds, but the international community views the ancient city’s eastern sector as occupied land and Palestinians consider it as the capital of their future state.

In December last year, US President Donald Trump sparked global uproar by announcing a dramatic shift in Washington’s policy on Jerusalem al-Quds. He declared that the US was recognizing Jerusalem al-Quds as the “capital” of Israel and planning to relocate the American embassy from Tel Aviv to the city.

Armenian IT firms’ direct taxes top those of major supermarket chains

September 19, 2017 by administrator

It turns out that Armenia-based IT companies pay more taxes than major supermarket chains that have multiple stores in Yerevan.

According to PanARMENIAN.Net ‘s own calculations, the biggest 10 firms in the information technologies sector have paid direct taxes worth AMD 3.4 billion in 2016.

Major supermarket chains, on the contrary, have paid by AMD1.1 billion less in the reporting period.

The list of 1000 major Armenian taxpayers, released by the tax service, includes Synopsys, Mentor Graphics, Oracle, Softline International, PicsArt, CQG, Monitis and a number of other companies.

Synopsys, by the way, is the biggest company in terms of direct tax payments.

Yerevan: Senior tax inspector arrested for taking significant amount of bribes

October 17, 2016 by administrator

Due to the investigative measures carried out by the RA National Security service G. B., Senior Inspector of the Tax Control Division of Mashtots Tax Inspectorate of State Revenue Committee, was detained at the time of receiving bribe. RA NSS press center informs about this in the released statement.

Pursuant to the preliminary evidence in return for providing lucrative conditions to the business entities functioning in the area under his supervision, including for avoiding printing fewer cash register receipts, hiding the amount of genuine money circulation and not registering the violation of tax legislation in the manner prescribed by law, G. B has demanded and received significant amount of money on a regular basis.

A criminal case has been launched regarding the above mentioned evidences on grounds of receiving large amount of bribes (Part 3 (Point 3) of Article 311 of the RA Criminal Code). Preliminary investigation is underway.