Friday, April 5 2019 20:00

ArmInfo. The State Revenue Committee (SRC) of Armenia refuted the words of David Ghazaryan, founder and general director of Spayka LLC. "On April 5, 2019, at the  press conference convened by Spayka LLC, some unwarranted assessments  and statements were made, which the SRC considers necessary to  comment separately," the statement of the Committee received by  ArmInfo reads.

Thus, answering the statement of David Ghazaryan`s lawyers that  despite the fact that in September 2018 the criminal case against the  company was suspended, today charge is filed in the same case, SRC  reports that on 4 September 2018 the Investigation Department of the  SRC took the decision not to prosecute within the criminal cases  against Spayka LLC and other companies, however, the criminal case  was not discontinued and the preliminary investigation continues.  Moreover, the prosecution was discontinued for non-accusatory  episodes.

On the words that only the expert opinion forms the basis of the  charges, the SRC informs that that is not right. The basis of the  accusation is not only an expert opinion, but also documents obtained  on requests to other states. It is also noted that the General  Director of "Spayka" was not informed in advance about the conduct of  the forensic accounting expertise, because in accordance with Article  247 of the Criminal Procedure Code of Armenia, when appointing and  conducting an examination, the suspect, the accused and the victim  have the right to familiarize themselves with the decision of the  investigator on the appointment of an examination, and an explanation  of their rights, as well as the results of the examination - within  10 days after the investigator received this opinion. "David  Ghazaryan, meanwhile, on the day of the appointment of the forensic  accounting examination was in the procedural status of a witness,  therefore, could not exercise this right, and was brought to the  criminal case as an accused only on April 4, 2019 and on the same day  he got acquainted with with the decision on the appointment of the  examination, as well as the expert's opinion. At present, he is not  deprived of the right to make petitions and present his own argument,  "the statement reads.

SRC also refutes the statement of the company's management regarding  the right of exemptions from the VAT. "The calculation of the  exemption of about 5 billion drams on VAT from damages caused to the  state of 7,036,666,312 drams is groundless, taking into account  Article 74 of the Armenian Tax Code," the statement reads. The SRC  reminds that VAT paid upon import is subject to return in the future  when carrying out transactions with a zero rate on VAT (and export is  such a transaction). But, according to the law, for this, when  importing goods, the company had to submit a tax declaration on  indirect taxes to the tax authority and pay VAT to the budget. After  ensuring these conditions, when exporting products, to confirm the  application of the zero rate on VAT and further return of the  value-added tax, it was necessary to submit the necessary documents,  including the export tax declaration, and after that receive the VAT  refund.

In addition, the SRC recalls that at the time of the establishment of  legal relations, according to the law and the current Tax Code, the  benefit on exemption of agricultural products from income tax applies  to income tax payers engaged in agricultural production.  "Consequently, the preference cannot be extended to persons engaged  in the import and re-export of agricultural and other products,"  explains the SRC.  As for David Ghazaryan's statement that the  expert's opinion was issued in a "dubiously short timeframe," as the  Committee states, this may be due to the simplicity of the  calculations and the presence of many documents that underlay the  document.

The Tax and Customs Committee notes that the necessary investigative  and operational-search measures were carried out to determine the  circle of persons involved in the crime. The Committee also reminds  that the investigator's petition for the application of a preventive  measure against the Spayka CEO cannot justify the non-payment of  taxes in the amount of about 7 billion drams.

At the same time, the State Revenue Committee urges not to succumb to  speculation, thus trying to influence the investigation of the  criminal case, "especially considering that the Investigation  Department of the SRC or some other subdivision is not to blame for  this situation."

Yesterday ArmInfo, with reference to the SRC,  reported that the SRC  Investigation Department revealed a case of non-payment of taxes by  Spayka LLC in the amount of 7 billion drams (about $ 14.4 million).  It was reported that between Jan 1 2015 and Jan 1 2016 alone the  company, using shadow schemes and not declaring real data on imported  goods within the time limits provided by law, did not submit the  necessary customs declarations. Moreover, instead of them, on behalf  of the Greenproduct LLC, fake data were submitted to the customs  structures for the calculation of taxes, duties and other mandatory  payments. In fact, Spayka LLC, deliberately aiming not to pay the  necessary taxes and duties, did not pay customs duties and taxes in  the amount of 7 036 666 312 drams (more than $ 14.4 million) to the  state budget. To determine the amount of damage caused to the state  for the remaining months of 2016, as well as for 2017- 2018  investigative and procedural actions continue. For committing these  acts on April 4, 2019, David Ghazaryan was charged under part 2 of  Article 205 of the Criminal Code of Armenia (evasion of taxes,  duties, or other obligatory payments exceeding a thousand times the  minimum wage set at the time of crime). On the same day, the  Investigation Department of the SRC sent a petition to the court of  first instance of general jurisdiction of Yerevan on the application  of a preventive measure in the form of arrest against Ghazaryan,  which was considered on April 5. The court decision will be made  public on April 8 at 10:00am.

Prior to the beginning of the court session, David Ghazaryan convened  a press conference and said that he refuses charges on non- paying  the tax of 7 billion drams. According to Ghazaryan, this amount is  artificially bloated by the SRC. Speaking directly about the amount  of unpaid tax, the director said that it had nothing to do with the  company, because the tax claims were addressed to another company,  Greenproduct LLC, which was artificially tied to Spayka, which  allowed SRC to file tax claims against Ghazaryan himself. He also  noted that out of 7 billion drams, 5.5 billion drams is VAT, which  should have been returned to the company. Regarding the rest of the  amount, Ghazaryan noted that the investigators showed unique  abilities, and the analysis of documents, which usually lasts several  months, was carried out by them for only a few days, as a result of  which the total amount was  calculated.