EMBATTLED BROADCASTER ACCUSED OF TAX EVASION
By Hovannes Shoghikian

Radio Liberty, Czech Republic
Nov 12 2007

The Armenian authorities moved on Monday to bring accusations of tax
evasion and other violations against the owner of a rare TV station
that provided airtime to former President Levon Ter-Petrosian.

The State Tax Service (STS) said the Gyumri-based GALA TV deliberately
deflated its advertising revenues in the last two years to avoid paying
26 million drams ($80,000) in taxes. The STS also accused GALA’s
parent company, Chap, of illegally using a TV tower in Armenia’s
second largest city and manufacturing fireworks in the past without
a government license.

The government agency said it has uncovered the alleged violations
during a detailed financial inspection of Chap’s operations. The
inspection was launched shortly after GALA broadcast as a paid
advertisement on October 14 a landmark speech in which Ter-Petrosian
subjected Armenia’s leadership to harsh criticism. Ter-Petrosian
supporters say GALA and another, even smaller local TV station were
the only broadcasters that agreed to air the September 21 speech that
marked the former president’s return to active politics.

The GALA owner, Vahan Khachatrian, claimed late last month that the
National Commission on Television and Radio, a government-controlled
body issuing and revoking broadcasting licenses, had warned him against
airing Ter-Petrosian’s verbal attacks on President Robert Kocharian. He
also said that officers of the Gyumri branch of the National Security
Service (NSS) told GALA stop covering the ex-president’s political
activities.

Khachatrian on Monday described as "false" and "absurd" the accusations
that are likely to be picked up by state prosecutors. "I don’t know
how they calculated that figure," he said of the tax evasion claim.

Khachatrian admitted that his company did manufacture and sell
fireworks without a license in 2001. "Why have they been silent for
six years?" he told RFE/RL. "I paid about $1,000 worth of taxes to
the state and the state never told me that my activities are illegal.

I don’t even know if that type of activity required a license back
in 2001."