A financial loss of AMD 400 million (approximately USD 1 million) caused to the Armenian state has been fully recovered.

According to Armenia’s Prosecutor General’s Office, an investigation by the Investigative Committee under the supervision of the Department for Crimes Against Economic Activity revealed that M.Gh., founder and director of an LLC engaged in imports, food production, and wholesale and retail trade, deliberately included false data in tax filings to evade taxes amounting to AMD 400 million.

Specifically, M.Gh. violated the Armenian Law on Profit Tax and Chapter 22 of the Tax Code (in effect at the time of the transactions) by transferring a total of AMD 2 billion to another company’s account between 2013 and 2016 without issuing invoices for the transactions. This resulted in the artificial reduction of taxable income and the submission of distorted financial statements for the years 2013 to 2016.

Based on sufficient evidence of the crime, on June 23, 2024, a supervising prosecutor initiated public criminal prosecution against M.Gh. under Article 205, Part 2 of the Criminal Code of April 18, 2003, for willful evasion of taxes in especially large amounts.

During the preliminary investigation, M.Gh. fully reimbursed the AMD 400 million damage to the state.

On June 23, 2025, the prosecutor decided to terminate the public criminal prosecution against M.Gh., based on a non-exonerative ground.