HIGH TAX RATES CAUSE OF TAX AVOIDANCE IN ARMENIA

news.am
Feb 4 2010
Armenia

Armenian businessmen prefer tax avoidance because of too high tax
rates and poor administration, the lawyer Sergey Marabyan stated at
a discussion organized by the Protection of Taxpayers and Businessmen
NGO.

According to him, numerous economic entities will "come out of the
shadow" provided the tax rates are reduced. Marabyan said that many
small and medium businessmen are hardly informed of tax laws or cannot
understand them.

"The Tax Code contains so many tortuous definitions that only an
experienced lawyer can understand them," Marabyan said. He added that
necessary literature is hardly available in Armenia, whereas it is
in great demand.

Businessmen almost always feel guilty in tax inspectors’ presence
because of the tortuous laws, Marabyan said. He pointed out that
businessmen should apply to experienced lawyers.

Participating in the discussion were representatives of about 30
government and private agencies. Lusine Gurjinyan of the Rights
without Borders organization reported that Armenian citizens often
complain about government agencies, particularly about the State
Revenue Committee.

In 60% of cases courts return verdicts in citizens’ favor, which is
evidence that tax inspectors are not so competent, Gurjinyan said.

Representatives of the RA State Revenue Committee attended the meeting
as well.