VIDEO: Developer of Apartment Buildings Hid True Apartment Values, Says SRS

The Investigation and Operational Intelligence Department of the State Revenue Committee (SRS) received operational information that a company engaged in the construction of apartment buildings on Anastas Mikoyan Street in Yerevan was undervaluing apartments in purchase agreements. They were also allegedly registering apartments in the names of individuals and later selling them at higher prices, thereby creating conditions to evade paying significant taxes.

This was reported by the Public Relations and Information Department of the SRS.

"During the ongoing operational intelligence measures, an alleged buyer reached an agreement with the deputy director of the company's sales department, H.S., that the purchase price for a 110 square meter apartment would be set at $176,000, of which $38,000 was to be paid in cash. In accordance with the agreement, the deputy director of sales sent a draft of the contract for notarization. On the same day, near one of Yerevan's notary offices, the alleged buyer paid $38,000 in cash to the formal owner of the apartment, M.A., who then transferred the money to G.S., who was present at the transaction location and is the father of the deputy director of sales of the company.

Following the operational intelligence measure named "Controlled Purchase," a group of individuals was detained based on reasonable suspicion of preparing for non-payment of significant taxes in coordination with the company. M.A. and G.S. were apprehended near the notary office, and H.S. was apprehended from the company's office by various operational groups and brought to the SRS's Anti-Smuggling Department.

It was established that the right to purchase the apartment belonging to the company was previously registered in the name of M.A. as an individual for the purpose of concealing the taxable object, with the intent to later sell it at a higher value under his name. At the same time, a report has been submitted to the Investigation Committee of the Republic of Armenia regarding the preparation for non-payment of significant taxes by a group of individuals. The detained individuals and relevant documents were presented. Criminal proceedings have been initiated," the statement reads.