The Republic of Armenia’s state revenue and customs committee is actively working to combat tax evasion and conduct operational investigations. It has come to light that a group of individuals intentionally evaded paying significant amounts of taxes by not fulfilling their tax obligations as agreed upon in preliminary agreements. The investigation into these tax evasions and the ongoing operational investigations are a priority.

Based on reports from the State Revenue Committee (SRC) to NEWS.am, the head of the operational investigation and tax monitoring department of the construction project in Yerevan’s central district, along with PB employees, have been arrested. These individuals have violated the “Accounting Reporting” and “Non-cash Transactions” laws, as well as the requirement to conduct transactions in Armenian Drams. The investigation revealed that during apartment renovations, sale contracts indicated inflated values, with a portion of the payment made in cash in US dollars instead of Armenian Drams as stated in the agreements.

During the course of the operational investigation and tax monitoring, it became evident that the group intentionally evaded taxes amounting to AMD 163,440,597 (US$103,000) with the intention of avoiding substantial tax payments. Notably, an apartment with an area of 173.9 sq m was priced at 175,000,000 Armenian Drams (US$556,480), and the contract stated that the payment must be made in cash. However, one hour after signing the contract, the apartment was illegally sold for 103,000 US dollars in cash. The State Revenue Committee is taking the necessary actions in response.

Additionally, the investigation has revealed violations of the requirements outlined in executive documents and the concealment of income data during the operational investigation and tax monitoring process. These violations have led to the dismissal of the head of the division of the construction company and the head of the PB division, along with the Customs Administration of the Republic of Armenia.