YEREVAN. – The penalties imposed against tax evaders will become more severe next year, Armenia’s State Revenue Committee (SRC) Deputy Chairman Armen Alaverdyan stated during Tuesday’s budget discussions at the National Assembly (NA).

In his words, the administrative tools, informing, and explanatory activities are insufficient to prevent tax evasion. “[So,] We are switching to more stringent measures, including the launch of criminal proceedings,” Alaverdyan said.   

As per the SRC Deputy Chairman, absence of documentation is the basis for shadow economy. Also, he did not rule out the possibility of submitting to NA a bill on toughening penalties in the case of such absence.     

Armen Alaverdyan informed that 74 percent of the taxes are paid by 1,000 large taxpayers. The Government official ruled out that the tax burden will fall upon the shoulders of Armenia’s small and medium-size businesses. “This is impossible because the small business does not pay value added tax,” he said.