Armenia’s parliament approves bill restricting tax evasion cases
16.12.2010,
15:36
An extraordinary session of Armenia’s parliament has approved today in the first reading a set of amendments to the laws on taxes and VAT designed to restrict possibilities of companies to avoid taxes.
YEREVAN, December 15, /ARKA/.An extraordinary session of Armenia’s parliament has approved today in the first reading a set of amendments to the laws on taxes and VAT designed to restrict possibilities of companies to avoid taxes.
A deputy minister of finance Suren Karayan said the main objective of the bill is to exclude the possibility of large companies to split into several smaller ones which allows them not to pay VAT, a privilege established only for small and medium-sized businesses.
The deputy minister explained that the bill specifies the notion of affiliated persons. Under the proposed bill legal entities and physical persons are regarded as affiliated if they act in coordination and being guided by common economic interests.
Karayan said although the current Law on VAT defines cases when physical and legal entities are regarded as affiliated, nonetheless companies use legislative loopholes to avoid VAT payment. He said the proposed amendments reduce these instances to minimum. ($1 – 360.41 Drams). -0-
A deputy minister of finance Suren Karayan said the main objective of the bill is to exclude the possibility of large companies to split into several smaller ones which allows them not to pay VAT, a privilege established only for small and medium-sized businesses.
The deputy minister explained that the bill specifies the notion of affiliated persons. Under the proposed bill legal entities and physical persons are regarded as affiliated if they act in coordination and being guided by common economic interests.
Karayan said although the current Law on VAT defines cases when physical and legal entities are regarded as affiliated, nonetheless companies use legislative loopholes to avoid VAT payment. He said the proposed amendments reduce these instances to minimum. ($1 – 360.41 Drams). -0-
