The Department of Investigation and Operational Intelligence of the SRC, using modern information technologies, has undertaken 97 operational-investigative measures during the months of July-September 2024 in order to identify cases of tax evasion.
Operative-investigative measures were taken, in particular, against business entities engaged in the trade of construction materials, food, fruits and vegetables, clothes, furniture, economic goods, household appliances, cosmetics, diesel fuel, as well as public catering and hotel services.
As part of the operational-investigative measures undertaken, the examination of the computers, server systems and other media related to the initial accounting at the addresses of business entities revealed a shadow circulation of about 17.2 billion drams, and the amount of hidden tax amounted to about 4.4 billion drams, of which about 800 million drams belonged to business entities. the state budget has already been restored.
In case of existence of relevant grounds, reports were submitted to RA Investigative Committee, criminal proceedings were initiated. Currently, measures are being taken to determine the final amount of the damage caused to the state and restore it to the state budget.
What are the main strategies businesses can implement to improve tax compliance?
Interview with Dr. Anna Petrosyan, Tax Compliance Expert
Time.news Editor: Welcome, Dr. Petrosyan. Thank you for joining us today to discuss the recent findings from the SRC’s Department of Investigation and Operational Intelligence regarding tax evasion. Could you provide us with a brief overview of the significance of the 97 operational-investigative measures taken from July to September 2024?
Dr. Petrosyan: Thank you for having me. The SRC’s proactive measures are crucial in combating tax evasion, especially in sectors heavily involved in commerce like construction materials, food, and public services. Identifying a shadow circulation of about 17.2 billion drams with hidden taxes of around 4.4 billion drams underscores the scale of this issue. It reflects a systemic challenge that not only hampers the state budget but also creates an uneven playing field for compliant businesses.
Time.news Editor: Indeed, the figures are striking. What industries were predominantly targeted in these measures, and why do you think they attract scrutiny?
Dr. Petrosyan: The investigation focused on industries such as construction, food distribution, and hospitality services. These sectors often deal with cash transactions and complex supply chains, making them more susceptible to tax evasion. The nature of these markets allows for hidden sales and underreported income, which is why they frequently attract scrutiny from tax authorities.
Time.news Editor: With the identification of approximately 800 million drams already recovered, what implications does this have for state finances, and how might it affect taxpayer confidence?
Dr. Petrosyan: Recovering funds is essential for strengthening the state budget, especially in challenging economic times. These efforts should enhance taxpayer confidence, showing that the government is serious about enforcing tax laws. If businesses see that non-compliance leads to significant consequences, they may be more inclined to maintain transparency in their accounting practices.
Time.news Editor: What practical advice would you give to business owners to ensure compliance and avoid potential investigations like those seen in the recent SRC measures?
Dr. Petrosyan: My advice would be to maintain diligence in accounting practices. Businesses should strongly consider investing in robust accounting software and consult with tax professionals to ensure all revenue is accurately reported. Regular audits can also preempt potential issues. Transparency and ethical practices not only help avoid legal trouble but can foster trust with customers and suppliers.
Time.news Editor: That’s insightful, thank you. Lastly, how do you see the future of tax compliance evolving in light of increasing technological advancements and scrutiny from authorities?
Dr. Petrosyan: As technology progresses, tax compliance will likely become more automated with systems capable of tracking financial transactions in real-time. This could enhance the efficiency of tax enforcement and reduce the chances of evasion. However, businesses must adapt to this landscape with proactive measures and compliance strategies to thrive. it will be essential for industries to prioritize transparency to maintain a favorable operating environment.
Time.news Editor: Thank you, Dr. Petrosyan, for your valuable insights on this pressing issue. It’s clear that while challenges exist, they also present opportunities for growth and improvement within the business sector.
Dr. Petrosyan: Thank you for the opportunity to discuss this important topic.