Charges Filed Against Director of 'Alex Textile' Associated with Samvel Aleksanyan for Tax Evasion

The Investigative Committee of Armenia’s economic crimes and smuggling investigation division has obtained factual data during the investigation of a criminal case regarding 'Nor Zovq' LLC, revealing that the director of 'Alex Textile' LLC, which is engaged in the manufacturing and sale of knitted products, along with the head of the company's production facility, has collaborated with the owner of 'Actrade-Soft' LLC, a company operating in the software sector, to conceal the volumes of products produced and supplied by 'Alex Textile' LLC as well as the revenues generated from sales.

Specifically, the director, identified as M. M., involved V. S., the 100% shareholder of 'Actrade-Soft' LLC, who, for a fee, implemented the '1C' commercial software in the company. This program was integrated with an electronic server system, which was used to hide data regarding the actual turnover of 'Alex Textile' LLC and other organizations in a basement at his registered address.

According to the Investigative Committee of Armenia, under the directives of M. M. and A. H., V. S. provided access to this commercial program to several employees of 'Alex Textile' LLC, including chief accountant R. S. and production facility head A. H.

As a result, individuals with access to the program input data related to the economic activities of 'Alex Textile' LLC into the software, accumulating real turnover data in the hidden server system located in the aforementioned basement. It is noteworthy that this same server system also contained information regarding hidden turnovers related to 'Nor Zovq' LLC.

Through this operation, the director of 'Alex Textile' LLC, in collusion with the chief accountant and with the assistance of the production facility head and the aforementioned software founder, managed to evade substantial amounts of value-added and profit taxes, amounting to 1,144,765,709 AMD, from September 2019 to February 2023, by concealing certain taxable transactions and the tax objects of 'Alex Textile' LLC.

The tax documents submitted to the tax authorities by 'Alex Textile' LLC showed significantly lower turnover, and distorted data was introduced in the annual profit tax calculations for 2019–2021 and value-added tax and excise tax declarations from September 2019 through February 2023.

A separate investigation has been initiated concerning the substantial tax evasion by 'Alex Textile' LLC, during which searches were conducted at the premises of 'Alex Textile' LLC, as well as the residences of the company's director, production facility head, and founders.

Based on sufficient evidence obtained from the criminal proceedings, requests were submitted by the prosecuting body to the supervising prosecutor for public criminal prosecution against M. M. and R. S. under Article 290, Parts 1 and 2; and against A. H. and V. S. under Article 290, Parts 1 and 2 of the Criminal Code of Armenia, which were approved, and the charges were presented on the same day.

In the charges, the responsible individuals of 'Alex Textile' LLC acknowledged their guilt, and to restore the damage caused, the additional calculated tax liabilities amounting to 1,144,765,709 AMD were transferred to the deposit account of the Investigative Committee of Armenia.

The investigation continues.

Notice: A person charged with a crime is presumed innocent until proven guilty by a lawful court decision with legal force as per the procedures defined by the Criminal Procedure Code of Armenia.