In Armenia, tax authorities for generous reward "turned a blind eye" to unpaid taxes

ARMINFO
Armenia – May 2 2022
Naira Badalian

ArmInfo.The National Security Service (NSS) of Armenia has uncovered a corruption scheme developed and implemented by the deputy head of one of the key departments of the State Revenue Committee (SRC) and the chief tax inspector of the  same department.

In particular, according to the press service of the National  Security Service, it turned out that the deputy head of the  department in the State Revenue Committee A.M. and the chief tax  inspector of the same department A.A., being authorized to conduct  audits for budget compliance in companies engaged in economic  activity, by abusing their official position revealing the taxes to  be paid, did not record the entire amount of unpaid taxes, for which  they received a bribe in especially large sizes.

Thus, in the course of checks carried out in February-March of this  year, an economic entity engaged in the construction of  multi-apartment buildings revealed unpaid tax liabilities for 126  million drams. The economic entity, having agreed with these  officials, submitted an updated report to the tax authorities,  according to which, instead of 126 million drams, it vhad to make  additional tax payments for 59 million drams. Instead of A.M. and  A.A. demanded from the economic entity and received a bribe of 65  thousand dollars, of which 5 thousand dollars – in cash, and 60  thousand dollars – in the form of two apartments in a building under  construction at half the price.

In order to hide the real source of the bribe received, these  apartments were registered in the names of relatives of A.M. and  A.A., thus an attempt was made to legalize property obtained by  criminal means.

The materials prepared on this fact were sent to the Anti-Corruption  Committee, where a criminal case was initiated on the grounds of  paragraph 2, .1, art. 311 of the Criminal Code of the Republic of  Armenia (Receiving a bribe in especially large amounts, committed on  an especially large scale), p.1, part 3, art. 312 (Giving a bribe on  an especially large scale) and paragraph 1, part 3, art. 190 of the  Criminal Code of the Republic of Armenia (Legalization of illegally  obtained income, committed on an especially large scale).

Employees of the National Security Service and the Anti-Corruption  Committee conducted searches at the place of work and residence of  the indicated officials of the State Revenue Committee and the head  of the company-economic entity, during which materials of evidentiary  value for the criminal case were found.  A.M. and A.A. has been  detained. The preliminary investigation is ongoing.