The State Revenue Committee (SRC) of Armenia has introduced a legislative initiative that could result in the imprisonment of around a thousand entrepreneurs annually. Vahram Mirakyan, chairman of the Mantashyants Business Union, shared this on his Facebook page.
The SRC proposes amendments to Article 290 of Armenia’s Criminal Code. Currently, this article prescribes imprisonment for a term of 4 to 8 years for violations involving sums of 10 million drams (over $25,000) or more. However, under the current law, entrepreneurs can avoid imprisonment by paying the amount of the alleged violation.
The new SRC initiative suggests removing the possibility of release from arrest after the fine is paid. This means that entrepreneurs would remain in custody even after settling the alleged violation amount.
Mirakyan pointed out that last year, Article 290 was applied to about 1,000 business owners. He believes that if the SRC’s proposal is adopted, it could lead to the imprisonment of a similar number of entrepreneurs every year.
The chairman of the Mantashyants Business Union, which unites more than 600 Armenian entrepreneurs working in Armenia and abroad, expressed concern that virtually any medium or large business could be at risk since it is difficult to avoid violations amounting to 10 million drams over five years of operation.
Mirakyan warns that if this initiative is implemented, the SRC could "imprison all medium and large enterprises" within five years. He believes this would deal a severe blow to Armenia's investment climate and business environment.
The State Revenue Committee has not yet responded to the accusations raised by the head of the Mantashyants Union.
