SRC reveals 619 cases of illegal business activity
13.08.2019,
16:50
Over the first 7 months of 2019, Armenia's State Revenue Committee (SRC) has revealed 619 cases of illegal business activity, SRC Deputy Chairman Edward Hovhannisyan told reporters on Tuesday, adding that they have been fined in the amount of 375.4 million drams.
YEREVAN, August 13. /ARKA/. Over the first 7 months of 2019, Armenia's State Revenue Committee (SRC) has revealed 619 cases of illegal business activity, SRC Deputy Chairman Edward Hovhannisyan told reporters on Tuesday, adding that they have been fined in the amount of 375.4 million drams.
He said if compared to 2018, the SRC had conducted more activities to verify tax payments, but a comparative analysis shows that the percentage of detected violations last year was lower. Basically, the bulk of violations were absence of accompanying documents for the delivered products.
He said part of identified violations were artificial fragmentation of a business into several small ones, which allows the owner to work under preferential tax conditions.
As a separate category of violations, he pointed out insurance companies which register employees private entrepreneurs, paying as a result less payroll and other taxes.
He said all insurance companies except one, admitted to violating the law and have already paid tax liabilities in the amount of 137.6 million drams. In his words, part of the cases is still under investigation, and the size of the damage is being clarified.
According to him, the SRC will introduce legislative amendments that will specify such concepts as “abuse of tax planning” and “tax benefit.” He said the changes will provide for liability for understated tax obligations. ($ 1 - 475.9 drams). -0-
He said if compared to 2018, the SRC had conducted more activities to verify tax payments, but a comparative analysis shows that the percentage of detected violations last year was lower. Basically, the bulk of violations were absence of accompanying documents for the delivered products.
He said part of identified violations were artificial fragmentation of a business into several small ones, which allows the owner to work under preferential tax conditions.
As a separate category of violations, he pointed out insurance companies which register employees private entrepreneurs, paying as a result less payroll and other taxes.
He said all insurance companies except one, admitted to violating the law and have already paid tax liabilities in the amount of 137.6 million drams. In his words, part of the cases is still under investigation, and the size of the damage is being clarified.
According to him, the SRC will introduce legislative amendments that will specify such concepts as “abuse of tax planning” and “tax benefit.” He said the changes will provide for liability for understated tax obligations. ($ 1 - 475.9 drams). -0-
