The head of the State Revenue Committee of Armenia, Artur Manukyan, has proposed that tax administration in the country should have the power to impose physical punishment for tax evasion. This proposal was discussed during a meeting of the National Assembly on November 23, where changes to the “Law on Punishment” were being debated. Manukyan’s aim is to align the provisions of the tax code with the working norms of the tax administration. The proposed changes include conducting audits and investigations in cases of tax evasion, calculation errors, or delayed tax payment. The main objective is to ensure the effectiveness of tax administration and deter tax evasion.

The specific focus is on bringing Article 324.2 of the Tax Code in line with the provisions of the law. By establishing clear rules and closing any loopholes, the aim is to promote consistency in dealing with tax evasion cases and enable effective punishment. The proposal suggests that the tax administration should have the authority to physically punish individuals responsible for tax evasion, while culprits should be required to compensate for their evasion through the payment of penalties. Investigations and research should be conducted, taking into account not only the amount of taxes owed, but also social contributions and fines. Additionally, taxpayers should be obligated to adhere to electronic reporting systems to prevent tax evasion.

The Deputy Minister of Finance echoed the need for increased measures to combat tax evasion, stating that investigations and research should consider the payment of taxes, social contributions, and fines before tax evasion can be acknowledged. Following this statement, the fiscal commission approved the draft program, signaling support for the proposed changes. The intention is clear – to strengthen the tax administration’s ability to punish tax evaders and create a more effective system of tax regulation and enforcement in Armenia.