Davit Ananyan, the former head of Armenia’s State Revenue Committee (SRC), has expressed deep concern over the recent legislative proposal from the SRC. The initiative to abolish provisions that exempt certain tax violations from criminal liability, according to Ananyan, could set a dangerous precedent.
Ananyan emphasized that this move contradicts global trends in recent decades, which have focused on decriminalizing tax and economic offenses. He noted that such an approach typically fosters a favorable business climate, stimulates economic activity, and attracts investments.
"Economic stability and growth largely depend on businesses’ confidence in the impartiality and fairness of the legal system," Ananyan stated. He stressed the importance of establishing tax regulations that enable efficient tax collection without creating unnecessary obstacles for business operations.
The expert expressed concern that tax regulation is often influenced by political factors, which can lead to decisions being made based on current political considerations rather than objective economic indicators.
Ananyan called for minimizing political influence on tax regulation processes to achieve sustainable economic growth. He highlighted that the decriminalization of tax and economic offenses should aim to strengthen trust between businesses and the government.
It should be noted that the SRC previously announced its intention to abolish these incentive provisions, arguing that they allegedly encourage tax violations. This initiative has received sharp criticism from Armenia's business community and expert circles.
Earlier, BMG reported that Vahram Mirakyan, chairman of the "Mantashyants" Business Club, strongly opposed the legislative initiative, which could lead to the imprisonment of entrepreneurs.
According to the SRC’s proposal, changes are planned to Article 290 of the Armenian Criminal Code, which currently prescribes imprisonment for a term of 4 to 8 years for violations involving amounts of 10 million drams (over $25,000) or more. Currently, entrepreneurs can avoid imprisonment if they pay the amount of the alleged violation.
The new SRC initiative proposes to eliminate the possibility of release from arrest after paying the fine.
Mirakyan pointed out that last year, Article 290 was applied to about 1,000 businessmen. He believes that if the SRC’s proposal is adopted, it could result in the annual imprisonment of a similar number of entrepreneurs.
