On responsibility for exposing tax violations in Armenia 

ArmInfo.  The investigator does not conduct a tax audit; he merely orders an audit, which is carried out by the State Revenue Committee. The SRC also issues an audit report.  This was stated by Investigative Committee Chairman Artur Poghosyan in parliament on November 5, responding to a question from  Civil Contract faction MP Tsovinar Vardanyan about businesses  complaining about the methods of the investigative bodies and the SRC  in initiating criminal prosecutions for failure to fulfill alleged  tax obligations in the amount of 10 million drams.

According to Vardanyan, many businessmen claim that the amount of the  alleged violation is deliberately inflated so that the case can be  transferred from the SRC to the Investigative Committee. The latter,  in turn, first confiscates the business's property for a period  exceeding legally permitted limits, and then demands payment of  certain sums, citing a set plan for replenishing the state treasury.  Agnessa Khamoyan, a member of parliament from the opposition Hayastan  faction, stated that the current problems facing businesses in  Armenia aren't limited to the confiscation of computers and other  equipment for months during tax audits, nor the way investigators  treat tax violators, even those who haven't yet been proven guilty,  as if they were habitual criminals.

"The problem can be summed up as state racketeering. It's even more  surreal considering you're shifting the blame to the tax office (the  State Revenue Committee - ed.), while the tax office points the  finger at you.  Tax officers very politely invade the premises of a  business entity, demanding that you pay taxes in the amount of X, and  if you don't, they threaten you-investigators will investigate. The  latter also suggest paying the taxes into some account, then promise  a recalculation, and if you don't, they threaten you again-this time  with arrest," Khamoyan said.

Previously, Vahram Mirakyan, co-founder and president of the  Mantashyants Entrepreneurs' Club, repeatedly stated that criminal  cases against businesses in Armenia have become a treadmill.  Specifically, according to the head of the Mantashyants Club,  approximately 1,000 businesses in Armenia are subject to criminal  prosecution annually, a horrific figure for the country. By  comparison, 3,000-4,000 criminal cases are filed against businesses  in the United States annually, while there are approximately 30  million businesses in the United States and approximately 70,000 in  Armenia.

As a reminder, in 2024, the State Revenue Committee initiated  amendments to the Tax Code aimed at abolishing incentive provisions  and establishing stricter criminal penalties for tax violations. The  State Revenue Committee believed that this facilitates the commission  of tax crimes, and the legal basis for recognizing exemption from  criminal liability through compensation for property damage caused by  a crime hinders and prevents the commission of new tax crimes. The  initiator proposed establishing a penalty for tax violations in the  form of imprisonment for a term of three years or more, if violations  amount to 10 million drams or more. The bill was met with an  extremely negative response from the business community and expert  circles.