The Tax Authority's 'Heart' Now Wants Banking Secrets, Says MP

The State Revenue Committee has circulated a draft law that would provide tax authorities direct and complete access to information regarding the bank accounts of both individuals and legal entities. This was reported by Tadevos Avetisyan, an MP from the 'Armenia' faction of the National Assembly of the Republic of Armenia.

He also noted, “The false packaging is the same populist narrative of ‘fighting against the shadow’. In reality, the tools of tax terror are being consolidated. Now they are eliminating the institution of banking secrecy, entrusting tax authorities with judicial functions as well. The risks to the protection of banking secrecy are becoming immeasurable and unmanageable, leading to all the negative consequences that follow. Yes, this is unprecedented in international practice, and of course, it is negative.”

This amendment is likely to quickly lead to capital flight from the banking system of Armenia. In essence, any citizen, including employees of private organizations, relatives, and friends engaged in economic activities, could have their entire banking information accessed by a tax inspector at their whim, without a court order.

Thus, the current authorities are “fatting up the Central Bank for later slaughter.” It will be especially difficult to explain to foreign investors and financial institutions that this tool has good intentions, while the Central Bank seems to be forced into silence.