Armenian National Security Service discloses gross tax evasion by Alex Holding
31.05.2018,
12:13
Armenia’s National Security Service detected a tax evasion scheme that long years had been used by the owner of Alex Holding.
YEREVAN, May 31. /ARKA/. Armenia’s National Security Service detected a tax evasion scheme that long years had been used by the owner of Alex Holding.
The press office of the national security agency says that tax-dodging scheme implied fictive activities of individual entrepreneurs registered in the names of hundreds of Armenian citizens who worked at Yerevan City chain of supermarkets and who new nothing about that. The supermarkets were purchasing products from farmers via these individual entrepreneurs. When these fictive individual entrepreneurs’ turnover reached the limit of AMD 115 million, their activities were terminated and new individual entrepreneurs were registered.
According to the preliminary information, it has become known that Alex Holding LLC, obliged to pay the value added tax, in collusion with the previous head of the State Revenue Committee, used this scheme to pay only 2% of the whole turnover instead of 20% VAT.
Taking advantage from the illegal preference provided by the State Revenue Committee, Alex Holding sold not only farmer products, but also imported goods via fictive individual entrepreneurs, paying only turnover tax.
Preliminary calculations show that the total turnover of 461 fictive entrepreneurs’ sales amounted to more than AMD 40 billion, of which only 2% was sent to the government budget instead of 20% VAT.
The damage inflicted to the state from Alex Holding LLC’s activity will be gauged by an appropriate audit in due way.
A criminal case is opened into the evasion of taxes and other mandatory pays as well as into the fictive entrepreneurship.
Ten searches have been carried out, accounting papers, electronic storage devises and other papers have been seized as evidence.
Responsible employees of Alex Holding, the notary officer who had registered false individual entrepreneurs and citizens in whose names the individual businesses had been registered have been questioned.
Besides, according to the reliable information, the State Revenue Committee gave a green light to 11 large companies in chains of supermarkets creating unequal market conditions and striking hard at other companies which do their businesses above board and paying VAT.
The national security agency recommends threes 11 companies to calculate their skim money and submit appropriate information.
The agency says it continues its crackdown on shady dealings. -0---
The press office of the national security agency says that tax-dodging scheme implied fictive activities of individual entrepreneurs registered in the names of hundreds of Armenian citizens who worked at Yerevan City chain of supermarkets and who new nothing about that. The supermarkets were purchasing products from farmers via these individual entrepreneurs. When these fictive individual entrepreneurs’ turnover reached the limit of AMD 115 million, their activities were terminated and new individual entrepreneurs were registered.
According to the preliminary information, it has become known that Alex Holding LLC, obliged to pay the value added tax, in collusion with the previous head of the State Revenue Committee, used this scheme to pay only 2% of the whole turnover instead of 20% VAT.
Taking advantage from the illegal preference provided by the State Revenue Committee, Alex Holding sold not only farmer products, but also imported goods via fictive individual entrepreneurs, paying only turnover tax.
Preliminary calculations show that the total turnover of 461 fictive entrepreneurs’ sales amounted to more than AMD 40 billion, of which only 2% was sent to the government budget instead of 20% VAT.
The damage inflicted to the state from Alex Holding LLC’s activity will be gauged by an appropriate audit in due way.
A criminal case is opened into the evasion of taxes and other mandatory pays as well as into the fictive entrepreneurship.
Ten searches have been carried out, accounting papers, electronic storage devises and other papers have been seized as evidence.
Responsible employees of Alex Holding, the notary officer who had registered false individual entrepreneurs and citizens in whose names the individual businesses had been registered have been questioned.
Besides, according to the reliable information, the State Revenue Committee gave a green light to 11 large companies in chains of supermarkets creating unequal market conditions and striking hard at other companies which do their businesses above board and paying VAT.
The national security agency recommends threes 11 companies to calculate their skim money and submit appropriate information.
The agency says it continues its crackdown on shady dealings. -0---
