“Hetq” has reported that the tax body has imposed a debt of AMD 1,236 million on Argam Abrahamyan and Hovhannes Abrahamyan, sons of former Prime Minister Hovik Abrahamyan and associated with “Artashat Wincon” CJSC, without following proper notification procedures for enforcement. However, the court has been unable to establish a basis and make a ruling since the demand is unsubstantiated and arbitrary. The administrative court has deemed the company’s claim against the decision of the State Revenue Committee (SRC) admissible, and the company has also appealed to the Appellate Court. Currently, the case is under examination in the Criminal Court.

According to the decision of the SRC and the financial audit conducted by the tax body’s personnel, “Artashat Wincon” CJSC failed to account for and declare a total of up to 100,000 liters (calculated as 100% alcohol by volume) of production, as well as 100 liters of production exceeding the standard alcoholic strength derived from distillation. The decision of the SRC does not provide any specific reasons for these violations, nor does it elaborate on the environmental damages of AMD 1,123,608 and AMD 112,361, which were imposed as additional amounts.

The SRC’s decision states that “Artashat Wincon” CJSC imported ethyl alcohol and produced alcoholic beverages but failed to declare the production and did not account for or pay environmental damages in violation of the Law on Environmental Impact and Environmental Tax. The company also did not comply with the administrative law and the Law on Conveyance of Ethyl Alcohol for Production and the accounting of excise tax, as per the court’s decision.

Eremia Asatryan, the representative of “Artashat Wincon” CJSC, claims that the production and production of excisable and environmentally damaging products, totaling 149,522.4 liters, including containers and drained containers, are unclear based on the conclusion of the financial audit calculations and environmental damage assessment.

The court found that the demand for payment of AMD 974 million out of the total unpaid amount of AMD 1,236,608 was not substantiated and reduced the claim accordingly, as it did not align with the administrative law and the facts of the case.

Furthermore, the court determined that the claimant’s demand for payment of AMD 974 million was substantiated by the administrative law, but the claim was ultimately reduced due to the assessment and settlement made by the administrative body.

The court’s decision required the administrative body responsible for auditing financial and environmental damage to serve the company with the consequences of the financial and tax provisions imposed on “Artashat Wincon” CJSC. However, the company considered the claim to be implicit and decided to appeal to the administrative court, requesting clarification and substantiation for the claim regarding the unpaid amount of AMD 1,236,608.

According to “Artashat Wincon” CJSC, the company fulfilled its obligations by including the full unpaid amount of AMD 1,236,608 in its previous tax return. Additionally, the company provided a certified act indicating the payment of AMD 102,361 million in taxes on April 10, 2019.

The company also appealed to the administrative body responsible for the audit, stating that the nature of the claim was unclear since the administrative body issued the claim for payment without providing a written claim or confirming it with an act.

The appellate court dismissed the company’s appeal, citing that “Artashat Wincon” CJSC had been held liable by the Financial and Economic Department of the administrative body since 2003 for importing alcoholic beverages in violation of the law on the conveyance of ethyl alcohol.

In the final ruling, the Yerevan Court of Appeal upheld the claim of the State Revenue Committee and the environmental agency against “Artashat Wincon” CJSC. However, the court denied the claim for payment of AMD 972 million and reduced the claim by AMD 102,361 million.

According to the court’s decision, “Artashat Wincon” CJSC engaged in the receipt, production, transportation, and sale of alcoholic beverages, as evidenced by the representative of the Financial and Economic Department of the SRC.

The court stated that the company is liable to pay the unpaid taxes of AMD 1.236,608, based on a new foundation. The Administrative Court did not determine the responsibility of the Judicial.