Tsarukyan Wins Court Case Against the State Revenue Committee

Gagik Tsarukyan's "Onira Club," which operates the "Shangri La" casino, has won a court case against the State Revenue Committee (SRC), rendering around 6 billion dram worth of SRC acts invalid. This information comes from the "Datateleks" informational platform, as reported by news.am.

The dispute between the SRC and Tsarukyan began in 2020 when the operations of "Shangri La" were halted due to restrictions related to the coronavirus pandemic. In Armenia, casino operations are subject to a quarterly state fee. Since the closure of the casino due to the pandemic, "Onira Club" has not paid the state fee, leading the SRC to draft acts and demand payment.

"Onira Club" appealed to the administrative court, seeking to invalidate these acts, and on September 22, the court granted the company's request. Simultaneously, there is another lawsuit concerning the casino's license; since the necessary fee had not been paid by "Onira Club," the Ministry of Finance declared the casino's license invalid. Subsequently, "Onira Club" appealed to the court to annul the Ministry of Finance's decision to revoke the license. The court granted this request as well, invalidating the Ministry's decision.

Representing "Onira Club," lawyer Smbat Minasyan stated in an interview with CivilNet that the casino did not operate during the pandemic, paying the fee for only one quarter, after which they informed the SRC that they could not pay the fee due to governmental decisions that halted their operations. "Processes ensued, our license was revoked, we contested it, and the license was restored. However, we have not resumed operations, so on what basis are they demanding the license fee?" Minasyan pointed out.

According to Minasyan, "Shangri La" did not operate due to government actions rather than operator issues; thus, demanding payment of the fee is unreasonable. As per the lawyer, "Shangri La" is still not operational due to ongoing legal proceedings, and there is concern that they could be considered an illegal casino should they resume activities. "SRC has contested the court's decision in the administrative appeal court, but I do not have information on whether the case has been accepted for hearings," Minasyan informed.

Besides the "Shangri La" casino, "Onira Club" also operates the major entertainment complex "Paravon" and the "Multi Grand" hotels. Gagik Tsarukyan and his wife, Javahir Tsarukyan, are the shareholders of "Onira Club." According to the SRC, "Onira Club" is not among this year's top 100 taxpayers over the past nine months. Last year, the company paid 1.6 billion dram in taxes, while in 2019, it paid 5.2 billion.

Apart from the legal disputes with the SRC and the Ministry of Finance, there is an ongoing criminal investigation by the National Security Service concerning "Onira Club." In 2020, the NSS reported that the company had operated an illegal casino at the "Shangri La" location, exploiting the government's allowances without a special license, thereby causing approximately 30 billion dram in damages to the state. According to Smbat Minasyan, the investigation is ongoing, and no illegal casino has operated; rather, another casino, under the same company and address with a different cash register, was functioning legally.