SCS Reveals Major Tax Evasion Case

The employees of the State Revenue Committee (SCS) of Armenia have uncovered a case of tax evasion in the import and sale of electronic cigarettes.

Recently, operational data was received indicating that a company importing electronic cigarettes was selling the imported items at retail prices lower than the excise tax amount for electronic cigarettes. During a routine import from a member country of the EAEU, employees from the Investigation and Operational Intelligence Department conducted an inspection of the imported electronic cigarettes in the area of the ‘Cargo’ terminal at Zvartnots Airport.

It was discovered that the volumes indicated on the self-adhesive labels on the cigarette boxes were 10 times less than what was stated on the actual factory boxes. In total, the company reported significantly reduced volumes of electronic cigarettes in the tax and customs documents for products imported from EAEU member countries and China, thereby evading a particularly large amount of excise tax and value-added tax (VAT).

The cigarettes were stamped with labels that also indicated lower volumes during the electronic registration process. As a result, the company caused over 142 million AMD in damages to the state by concealing the true volumes of electronic cigarette liquids in documents that serve as a basis for taxation.

A report has been submitted to the Economic Crimes and Smuggling Investigative Department of the RA Investigative Committee based on the non-payment of particularly large taxes, and a criminal case has been initiated. Searches have been carried out at around 30 retail points of the company, resulting in the seizure of documents, electronic storage devices, and electronic cigarettes of significant importance for the case.

All stages of import are being monitored, thus any violations can be uncovered,” the statement says.