Major Tax Evasion Causing Over 37 Million Dram Loss to the State

The State Revenue Committee has revealed another case of significant tax evasion by a real beneficiary, discovered during its daily monitoring operations. According to the operational and investigative units of the committee, as a result of various operational-intelligence and investigative actions, it was found that citizen H.K., with the intention of evading taxes from economic activities, registered five companies in the names of himself and his relatives and engaged in the import of goods (corn, wheat, barley, rice).

To avoid the general taxation system, H.K. segmented his business activities into several parts in collaboration with different individuals and organized them in the names of various companies that were effectively managed by him. This created conditions for operating as inconspicuously as possible from tax oversight.

Based on operational information and analytical work, measures were taken that revealed that various goods were imported into Armenia through companies owned by H.K. from mid-2019 until February 2020. Contrary to the requirements of the RA Tax Code, customs declarations for imported goods were not prepared and submitted to the tax authorities by the 20th of the month following the month when the goods crossed the RA state border. As a result, the state incurred a damage amounting to 37,320,102 drams.

Criminal cases have been initiated based on materials prepared by the investigation and operational intelligence department of the SRC, under Article 205 of the RA Criminal Code. As a result of extensive investigative and procedural actions conducted by the SRC’s investigative department, sufficient evidence was obtained that the activities of the mentioned companies, as well as the actions of the executive body’s leaders, were actually organized and managed by the same individual.

The investigation also obtained factual data regarding the relation of this individual to other economic entities engaged in similar activities. During the pre-trial investigation, charges were brought against H.K. and individuals who collaborated with him under Article 205, Part 1, Point 2, and Article 205, Part 2, as well as Article 38-205, Part 1, Point 2 and Article 38-205, Part 2 of the RA Criminal Code. The pre-trial investigation is ongoing.

Notice: The suspect or accused person is considered innocent until proven guilty by a court ruling that has entered into legal force, according to the procedures established by the Criminal Procedure Code of the Republic of Armenia.