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$42 Million in Unpaid Taxes Collected Through Crackdown, Says Pashinyan

by Contributor
July 10, 2018
in Armenia, Featured Story, Latest, News, Top Stories
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On June 23, tax inspectors raid the offices of GLG Project Company with reported ties to Serzh Sarkisian's brother
On June 23, tax inspectors raid the offices of GLG Project Company with reported ties to Serzh Sarkisian’s brother

YEREVAN (Azatutyun.am)—Armenia’s Prime Minister Nikol Pashinyan said on Tuesday that his government has recovered more than 20 billion drams ($42 million) of unpaid taxes in less than two months.

Pashinian attributed that to an ongoing “fight against corruption, abuses and the shadow economy.” “This is a very important indicator, and I think that we must keep up our efforts in this direction,” he said at a weekly cabinet meeting in Yerevan.

Davit Ananyan, the head of the State Revenue Committee (SRC), specified that the sum equivalent to almost 1.8 percent of Armenia’s 2017 tax revenue was collected from 73 companies accused of tax evasion. They have been investigated by not only the SRC but also the National Security Service (NSS) and the police, he told cabinet members.

Ananyan singled out a tax fraud case brought against a customs brokerage company reportedly linked to his predecessor, Vartan Harutiunyan.

The NSS claimed in late May that the company, Norfolk Consulting, has evaded $7 million in taxes since being set up last summer and obtaining exclusive rights to process imports from China, the United Arab Emirates and Turkey. Norfolk’s executive director, Armen Unanyan, and two chief accountants were arrested at the time. They all were freed a week later after Unanyan agreed to transfer the allegedly unpaid taxes to the state.

In mid-June, the SRC accused two other customs brokerage firms of failing to pay more than 2 billion drams in taxes.

Armenia’s leading food supermarkets have been the other major targets of the new government’s stated crackdown on tax evasion. They have agreed to pay hefty fines despite insisting that they stuck to taxation rules that were set by the previous government.

Ananyan promised a tougher crackdown on companies and individuals underreporting their earnings when he was appointed as head of the SRC in late May. He said that the government’s tax revenue will be “substantially higher than planned” this year. It rose by more than seven percent in 2017.

Pashinyan said on Tuesday that the unpaid taxes detected by the law-enforcement authorities will be added to Armenia’s 2018 state budget. In particular, he said, the government will allocate 10 billion drams ($21 million) in additional subsidies to impoverished communities outside Yerevan.

The premier also stressed: “This figure [$42 million] doesn’t include illegal enrichment and embezzlement cases and cases involving other corrupt practices, which are also extremely large in scale. This process will definitely continue, and we will recover very serious sums and reverse damage inflicted on the state.”

The most high-profile probes of “illegal enrichment” launched to date involve former President Serzh Sarkisian’s former chief bodyguard, Vachagan Ghazaryan, and brother Levon.

Ghazaryan was arrested late last month after the NSS confiscated more than $2 million worth of cash from him. According to the NSS, he claimed to have “forgotten” to add this and other money to his official income declarations.

Around the same time, the SRC discovered documents showing that Levon Sarkisian and his two children hold nearly $7 million in an Armenian bank. Sarkisian and his daughter are now facing prosecution for their failure to disclose these sums to a state anti-corruption body.

An Armenian court issued an arrest warrant for Levon Sarkisian on Saturday. He has still not been arrested, however, suggesting that he may have fled the country.

Contributor

Contributor

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Comments 3

  1. GB says:
    4 years ago

    There will be more to come from those fake “hayrenaser” people!

    Reply
  2. Tugranaketzi says:
    4 years ago

    Amot, So many Armenian families still living in poverty and / or in shacks since the 1988 earthquake and these wealthy guys have been evading taxes.

    Reply
  3. Papik says:
    4 years ago

    I don’t know why so many Armenians are shocked that we also have sociopaths in our society. While the rest of the world locked theirs up in jails and asylums, ours were ruling the country.

    Reply

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