Tax violations alleged at Araratcement

PanARMENIAN.Net - Armenia's State Revenue Committee (SRC) says operational and intelligence measures have uncovered suspected large-scale tax violations at Araratcement, with preliminary estimates indicating losses to the state worth hundreds of millions of drams.

Investigators conducted covert surveillance of the cement plant in Ararat Province, tracking trucks leaving the facility, identifying their license plates and recording delivery destinations. The collected information was then compared with tax invoices issued by the company and data contained in the tax authority's databases.

According to the SRC, surveillance showed that 101 trucks departed the factory during a single day, while deliveries made by 35 of those vehicles were not accompanied by tax invoices.

Officials estimate that cement worth about 43.2 million drams was supplied in one day without the required accounting documents, resulting in approximately 7.2 million drams in unpaid value-added tax (VAT).

The investigation was later expanded to examine the company's entire supply chain. Based on the analysis of collected evidence, investigators suspect that diesel fuel purchases worth around 1.2 billion drams may have been recorded using fictitious tax invoices. According to the SRC, those documents were allegedly used to offset VAT liabilities and reduce the taxable profit base, causing an estimated 442 million drams in damage to the state.

The committee also reported suspected tax violations at another company owned by the same proprietor that produces concrete and operates in Yerevan and Kotayk Province.

According to preliminary findings, the company allegedly failed to report concrete sales worth roughly 73 million drams, resulting in losses to the state exceeding 23 million drams. Investigators also say they obtained evidence of potentially fictitious purchases totaling about 49 million drams, which may have caused an additional estimated loss of around 23 million drams.

The SRC said reports on the suspected crimes have been submitted to the investigative authority, criminal proceedings have been launched and a pre-trial investigation is underway.

Early on July 6, searches were carried out at the residence of Prosperous Armenia Party leader Gagik Tsarukyan, as well as at nearly all companies belonging to the Multi Group concern. Araratcement was also sealed. Factory employees staged a protest demanding that production be allowed to continue, after which operations resumed. Prime Minister Nikol Pashinyan later said that proceedings involving Araratcement were underway and that the enterprise would soon become state-owned with a state-appointed manager.