Nor Zovk company restores 2 billion drams of avoided taxes

YEREVAN, April 7, /ARKA/. The owner of Nor Zovk LLC, identified by investigators as A.A., the director of Nor Zovk chain of supermarkets, identified as R.A. and the chief accountant identified as S.S., arrested earlier this year on charges of tax evasion, were released from custody after admitting to deliberately avoid payment of taxes on a particularly large scale and paying two billion drams of avoided taxes.

The arrest as a measure of restraint in relation to these three persons was replaced with written undertaking not to leave the country, pending the end of the investigation, the Investigative Committee of Armenia reported.

The Investigative Committee said earlier that, A.A, who owns 100% in Nor Zovk LLC, by prior agreement with the director and the chief accountant had distorted tax related data to have avoided paying more than 4.1 billion drams in various taxes in a time span from 2019 to 2023.

'In order to implement their criminal intentions, to conceal the real income generated by all the supermarkets the owner of the company together with the director and chief accountant attracted a software company in return for a payment that provided the relevant technology tools,’ the Investigative Committee said.

In particular, a sales software was installed in all supermarkets, which was attached to a hidden electronic servers system. As a result, the real sales turnover was stored in the electronic server system, while customers were given receipts indicating the real amount of the transaction, generated by the software.

According to the Investigative Committee, the company avoided paying over 2.2 billion drams of VAT and over 1.9 billion drams of profit tax. ($1 - 388.21 drams) -0-