Arman Tatoyan Publishes Urgent Report

The Human Rights Defender of Armenia, Arman Tatoyan, has published an urgent report regarding the imposition of fines for violations of cash register regulations. He stated: “I am releasing an urgent report regarding the fact that the Tax Code provides for fixed fines and high amounts for violations of the regulations governing the use of cash registers. I have also applied to the Constitutional Court on this issue, contesting that by establishing fixed amounts for fines, the circumstances of the violation are not taken into account, and individuality is not afforded.

This concerns parts 1-5.1 of Article 416 of the Code, which stipulates that, for example, for the absence of a cash register machine that meets technical requirements, an organization, individual entrepreneur, or notary is fined 300,000 drams, and for public catering activities carried out in a public food establishment, the fine is 1,000,000 drams. It follows that the law predetermines the amounts of fines for the tax authority, from which no exceptions can be made.

Specifically, fines are imposed without individualization of the circumstances and situations of the alleged violation; they are not assessed based on the turnover volume of the business entity engaged in entrepreneurial activities. For the first time a violation is detected, a fine is applied to the entity engaged in economic activity, regardless of objective or subjective factors related to the violation.

Moreover, the high amounts of fines are problematic, as they place economic difficulties before newly established or small organizations, contrasting with larger organizations that have been operating for years. For some business entities, this can lead to a complete cessation of entrepreneurial activities. This situation does not ensure the constitutional requirement for the guarantee of engaging in economic and entrepreneurial activities. Consequently, this leads to an disproportionate intervention by the tax authorities in the constitutional right to engage in economic, including entrepreneurial, activities.”