Severe Penalties for Large Businesses Structuring to Evade Taxes, Says David Ananyan

The head of the State Revenue Committee, David Ananyan, is aware of the risks associated with exempting entities with a turnover of up to 24 million. In an interview with Tert.am, he did not rule out that, for example, an entity with a turnover of 50-60 million might attempt to fragment the company, but he assured that the law has mechanisms in place, and the oversight will be strict, if not severe.

“By strict, I mean our internal analytical tools, which will not hinder the taxpayer's activities. I believe that the other regulatory norm, whereby the turnover tax threshold will change from 58.35 million to 115 million, does not create such a significant tax obligation that our compatriots would take the risk of fragmenting their companies to operate as micro-enterprises,” he said in the interview.

Ananyan stated that if it is proven that a business is being broken down solely to present itself as a micro-enterprise entity and evade taxes, criminal liability will be enforced under Article 205 of the Criminal Code.

“If it is proven that the main purpose of breaking down the business is to evade taxes, it will be considered as maliciously avoiding the payment of taxes, duties, or other mandatory payments, which is punishable by law. I believe our compatriots need to weigh their options carefully and consider whether to break down their business or to remain as a taxpayer with a turnover of up to 115 million,” Ananyan emphasized.

For more details, visit the source site.