Sanitek Owes Approximately 300 Million AMD in VAT for January-September 2018, Says State Revenue Committee Deputy Chairman Edward Hovhannisyan

According to preliminary calculations of tax obligations, Sanitek International LLC has not accounted for or paid approximately 299,918,392 AMD in VAT to the state budget for the period from January to September 2018. Meanwhile, the Armenian branch of Sanitek LLC has not paid approximately 280,429,121 AMD in VAT.

This information was disclosed by Edward Hovhannisyan, Deputy Chairman of the State Revenue Committee, during a press conference today. He explained that the LLC and its branch had divided their services into two categories for tax purposes, calculating VAT for sanitation and other auxiliary services, while classifying the services involving the transport of garbage and snow with cargo trucks as transportation, thereby considering themselves as registered tax payers.

Hovhannisyan noted that during the preliminary investigation of a criminal case, it was revealed that the Armenian branch of Sanitek LLC and Sanitek International LLC had failed to present consolidated tax accounts for environmental tax and natural resource use payments for 2018. In accordance with its functions, the investigating authority has initiated an audit to determine the extent of undisclosed and unfulfilled tax obligations.