Armenia’s government does not keep its promises

The RA Ministry of finances reminds that Armenia’s largest companies should publish their financial reports along with audit conclusions until July 1, 2010.

It was found out that under the crisis conditions the Armenian small and medium enterprises (SME) have assumed the basic load of tax payments, as numerous complaints were received from them with respect to the increased number of inspections by tax services. The government’s image was undermined once again and it caused Armenian Prime Minister Tigran Sargsyan’s concern. He addressed his discontent to the RA Ministries of Finance and Economy, which have not fulfilled their obligations properly. Thus, the reforms implemented by the government to minimize personal relations between tax bodies’ and business’ representatives have not yielded results. Is it possible that the reformers do not hurry to implement them, aiming to line their own pockets in the end?

April 17, 2010

PanARMENIAN.Net - Being concerned over the current situation, the Ministry of Finance placed a reminder on its official website, saying that as per the RA Law on Accounting the Armenian largest companies shall publish their financial reports along with audit conclusions until July 1, 2010. However, the expected results will not be comforting at all: the total number of inspections by tax bodies increased by 82% in 2009, while the additional funds obtained through them decreased by 25%. Meanwhile, the number of inspections at large businesses increased by 30%, at taxpaying companies with AMD 58mln annual turnover – by 70%, at other companies – by 250%. At the same time, the total additional funds to be paid as a result of inspections at the three groups reduced by 2-3 times. Thus, the funds to be paid by large businesses as a result of tax inspections are lower by four times, than those to be paid by other taxpayers. It should be noted that this difference increased by 3.8 times in 2008 and by 4.6 times in 2009. So, the government is more favorable towards large taxpayers, than towards small enterprises.

Tax inspectors’ visits are often of “studying” nature; however, only large taxpayers can endure such inspections, but not SME. And the distrust towards the state and reforms implemented by it comes from it. SME’s discontent grows specifically under difficult economic conditions, when SME need the state’s assistance. Due to the expanding macroeconomic policy pursued by the government, positive trends were recorded in the economy’s rehabilitation by the end of first quarter of 2010; however, if they are not supported at micro level, the government will hardly manage to gain the promised over-fulfilment of programs.

Victoria Araratyan / PanARMENIAN News