Alex Textile Hides Over $2.9 Million in Tax Revenues: Investigative Committee

Alex Textile has concealed nearly $3 million in tax revenues, according to the Investigative Committee’s press service.

As stated in the release, during the investigation of the criminal case against Nor Zovk LLC, factual data was obtained indicating that M. M., the director of Alex Textile LLC, engaged V. S., the owner of ACTRAID-SOFT LLC that operates in the software sector, with the assistance of A. H., the production manager of the company, to hide the produced goods volumes and the revenues from sales while simultaneously controlling real turnover.

According to the case materials, V. S. installed the “1C” trading software in Alex Textile LLC in exchange for payment and concealed the data on real turnover in the basement of his registered address. Following the instructions of M. M. and A. H., V. S. provided access to the implemented commercial program to several employees of Alex Textile LLC, including chief accountant R. S. and production manager A. H.

As a result, those with access to the program entered information about the economic activities of Alex Textile LLC into the trading program and accumulated data regarding real turnover on a server system hidden in the basement of the mentioned address.

It is noteworthy that information regarding the hidden turnover of Nor Zovk LLC was also discovered from the same server system. The state has suffered a particularly large loss amounting to 1,144,765,709 AMD (approximately $2,946,781). Since September 2019 until February 2023, part of the taxable transactions of Alex Textile LLC and the tax object has been hidden.

Through the accounting documents presented to the tax authority, Alex Textile LLC has shown a lesser turnover, and distorted data has been entered in the calculations of value-added tax and excise tax from September 2019 through February 2023, as well as in the annual profit tax calculations for 2019-2021.

Submissions have been made to the supervising prosecutor for public criminal prosecution against M. M., the director, and R. S., the chief accountant, under Article 290, Parts 3, Points 1 and 2 of the RA Criminal Code, as well as against A. H., the production manager, and V. S., the owner of the aforementioned software company, under Article 290, Parts 3, Points 1 and 2 of the RA Criminal Code, which were approved, and they were charged on the same day.