Spayka company head denies tax evasion charges
05.04.2019,
19:01
The head of Spayka LLC David Ghazaryan, accused by Armenia’s State Revenue Committee (SRC) of large-scale tax evasion, told a press conference today that the accusations are ungrounded and the alleged amount of unpaid taxes - 7 billion drams or more than $14 million are artificially bloated by SRC ‘to win over the public opinion."
YEREVAN, April 5. /ARKA/. The head of Spayka LLC David Ghazaryan, accused by Armenia’s State Revenue Committee (SRC) of large-scale tax evasion, told a press conference today that the accusations are ungrounded and the alleged amount of unpaid taxes - 7 billion drams or more than $14 million are artificially bloated by SRC ‘to win over the public opinion."
Ghazaryan explained that the accusations are leveled also against Greenpropduct company, which is not related to Spayka. In his words, the 5.5 billion drams of the unpaid amount of 7 billion drams are VAT, which should have been returned to the company.
As for the rest of the amount, Ghazaryan said the investigators showed unique abilities, and the analysis of documents, which usually takes several months, was made in a few days. Ghazaryan said even if the court allows his arrest the company will continue operations.
Ghazaryan also said the news about his detention yesterday made the Eurasian Development Bank to stop the release of a $100 million loan to Spayka. He said the amount was to arrive on Monday. According to him, the implementation of this investment project would create thousands of new jobs by November with an average salary of 250 thousand drams.
"Yesterday, at 24:00, I was notified by the Eurasian Development Bank that it suspended financing because of the criminal prosecution against me," said Ghazaryan.
The SRC said today that in 2014-2015 the company bought cheese, pears, apples, Chinese cabbage, tomatoes and other products in various European countries, which are not members of the Eurasian Economic Union, including Poland and Belgium and imported them to Armenia across Georgia from 01/01/2015 – to 01/11/2016.
When importing goods through Georgia’s customs offices the real names, weight, cost, country of origin, supplier and buyer, as well as invoices for the purchase of goods were presented. However, when the goods went through Armenian customs offices, the Armenian customs authorities were provided with false documentation that the imported goods were not subject to taxation and were exempted from VAT. Greenproduct LLC, subordinated to Spayka LLC, was indicated as the importer.
As a result, goods imported from various foreign companies went through customs clearance in Armenia under the name of other goods, the customs clearance of which is exempted from the calculation and payment of customs duties and VAT.
In fact, Spayka LLC, deliberately aiming to avoid taxes and duties, avoided payment of customs duties and taxes in the amount of 7.036 billion drams (the equivalent of more than $14.4 million).
SRC said an investigation is underway to determine the amount of damage caused to the state for the remaining months of 2016, as well as for 2017-2018. For committing these socially dangerous acts on April 4, 2019, David Ghazaryan was charged under part 2 of Article 205 of the Armenian Criminal Code (evasion of taxes, duties, or other obligatory payments exceeding the amount of one thousand minimum wages).
Spayka founded in 2001, has been engaged in the export and sale of fruits and vegetables to Russia, CIS and European countries since 2007. The company also manufactures packages, including boxes and pallets of foamed polystyrene. The company also develops intensive gardens. On March 26, Spayka commissioned a $15 million worth cheese factory. The opening ceremony was attended by Prime Minister Nikol Pashinyan. -0-
Ghazaryan explained that the accusations are leveled also against Greenpropduct company, which is not related to Spayka. In his words, the 5.5 billion drams of the unpaid amount of 7 billion drams are VAT, which should have been returned to the company.
As for the rest of the amount, Ghazaryan said the investigators showed unique abilities, and the analysis of documents, which usually takes several months, was made in a few days. Ghazaryan said even if the court allows his arrest the company will continue operations.
Ghazaryan also said the news about his detention yesterday made the Eurasian Development Bank to stop the release of a $100 million loan to Spayka. He said the amount was to arrive on Monday. According to him, the implementation of this investment project would create thousands of new jobs by November with an average salary of 250 thousand drams.
"Yesterday, at 24:00, I was notified by the Eurasian Development Bank that it suspended financing because of the criminal prosecution against me," said Ghazaryan.
The SRC said today that in 2014-2015 the company bought cheese, pears, apples, Chinese cabbage, tomatoes and other products in various European countries, which are not members of the Eurasian Economic Union, including Poland and Belgium and imported them to Armenia across Georgia from 01/01/2015 – to 01/11/2016.
When importing goods through Georgia’s customs offices the real names, weight, cost, country of origin, supplier and buyer, as well as invoices for the purchase of goods were presented. However, when the goods went through Armenian customs offices, the Armenian customs authorities were provided with false documentation that the imported goods were not subject to taxation and were exempted from VAT. Greenproduct LLC, subordinated to Spayka LLC, was indicated as the importer.
As a result, goods imported from various foreign companies went through customs clearance in Armenia under the name of other goods, the customs clearance of which is exempted from the calculation and payment of customs duties and VAT.
In fact, Spayka LLC, deliberately aiming to avoid taxes and duties, avoided payment of customs duties and taxes in the amount of 7.036 billion drams (the equivalent of more than $14.4 million).
SRC said an investigation is underway to determine the amount of damage caused to the state for the remaining months of 2016, as well as for 2017-2018. For committing these socially dangerous acts on April 4, 2019, David Ghazaryan was charged under part 2 of Article 205 of the Armenian Criminal Code (evasion of taxes, duties, or other obligatory payments exceeding the amount of one thousand minimum wages).
Spayka founded in 2001, has been engaged in the export and sale of fruits and vegetables to Russia, CIS and European countries since 2007. The company also manufactures packages, including boxes and pallets of foamed polystyrene. The company also develops intensive gardens. On March 26, Spayka commissioned a $15 million worth cheese factory. The opening ceremony was attended by Prime Minister Nikol Pashinyan. -0-
