Rustam Badasyan, Chairman of Armenia’s State Revenue Committee (SRC), has dismissed allegations made by Vahram Mirakyan, head of the "Mantashyants" Union of Entrepreneurs. Badasyan labeled Mirakyan's claims about "terrorizing businesses" and plans to imprison entrepreneurs as "baseless."
On Thursday, August 15, Badasyan responded to reporters, criticizing the widespread belief in a global trend toward decriminalizing economic crimes, calling it "an outright lie." He expressed readiness to debate the topic, asserting that international practice suggests the opposite.
The SRC Chairman clarified that the proposed legislative changes are still under discussion. He announced an upcoming meeting of the SRC Public Council, where these issues will be discussed with business community representatives.
Badasyan pointed out flaws in the current Criminal Code regulations, which allow offenders to avoid criminal liability by simply compensating the damage caused by tax violations. In his view, this practice undermines the principles of fair competition.
As an example, he described a situation where two companies operate in the same market: one fully complies with tax regulations, while the other evades taxes. When violations are uncovered, the latter company can avoid responsibility by simply paying off its debt, putting the compliant taxpayer at a disadvantage.
Badasyan also clarified that the SRC's proposal does not provide for automatic exemption from punishment after payment. He explained that the issue concerns a Criminal Code article that imposes prison sentences ranging from 4 to 8 years for violations involving amounts of 10 million drams or more.
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.
