VIDEO: Construction of Sports Complex Valued at 20 Billion Drams Documented for Only 665 Million Drams

The State Revenue Committee (SRC) has detected potential tax violations in the construction process of a large sports complex in Yerevan. According to preliminary data, the possible damage caused to the state exceeds 2 billion 107 million drams.

The SRC reports that the company’s accounting documents, construction data, and information from the tax authority’s databases have been studied. It has been revealed that for the construction of the sports complex, which has an area of approximately 10,500 square meters, only around 665 million drams of construction works, services, and material acquisitions were officially documented between 2013 and 2015. However, later, the same sports complex was appraised by an independent evaluator at over 20 billion drams as a non-cash contribution from the founder.

According to the SRC, there are well-founded suspicions that a significant portion of the construction materials, performed works, and services used during the construction may not have been properly documented or reflected in the company’s accounting and tax records. Additionally, some assets with a balance value of approximately 614 million drams were not found on-site. Preliminary data indicates that the possible damage caused to the state by just this circumstance is around 102 million drams.

A report regarding the case has been submitted to the Investigative Committee, a criminal proceeding has been initiated, and the investigation is ongoing.