Armenian government proposes introducing institution of representative
of tax body
YEREVAN, MAY 30, NOYAN TAPAN. The National Assembly of the RA on May 21
began discussing in first reading the package of quite contentious
bills (submitted by the government) which envisage amendments and
additions to the RA Code of Administrative Infractions, the Law on
Excise Tax, the Law on Profit Tax, the Law on Taxes and the Law on
Value Added Tax. The discussion will continue at the regular planary
session to be convened on June 8.
The main target of those opposed to the package was the addition to the
Law on Taxes, which in particular envisages that with the aim of
implementing control the State Revenue Committee can appoint a
representative(s) of the tax body at a tax payer. It concerns big
business: in particular a representative can be appointed if the tax
payer’s revenues from sale exceeded 4 billion drams in the previous
year, or if the tax payer had 500 and more employees at some moment of
the previous year, or if the tax payer declared tax losses of 50
million drams and over for two consecutive years, or if the customs
value of goods imported by the tax payer by "import for free turnover"
regime during three months preceding some moment in the reporting year
exceeded 500 million drams.
By the bill, a representative of the tax body must consider the tax
payer’s transaction documentation procedures, volumes of products,
turnover and services, and real sale prices.
In their questions put to Deputy Minister of Finance Suren Karayan, as
well as in their speeches, the deputies (who described themselves as
professing both socialist and liberal values) objected to the
legislative initiative of the government, noting that it contradicts
first of all the program provisions of the government, including the
provision on reducing the contacts between an economic entity and a
representative of tax bodies to a minimum. Moreover, the introduction
of the institution of representative of the tax body was considered as
the government’s "just another thoughtless step" against the business
environment, adoption of not the best mechanisms of control of the
Soviet time, etc.