No getting rid of shadow economy - Rustam Badasyan

ArmInfo. It is impossible to completely get rid of the shadow economy, but minimizing its impact  on the development of Armenia is one of the primary tasks of the State Revenue Committee of the Republic of Armenia. Chairman of the State Revenue Committee Rustam Badasyan stated this on October 31 at  a hearing in the commissions of the National Assembly of the Republic of Armenia on the draft state budget of the country for 2024.

According to him, until recently, the assessments of the shadow  economy by the State Revenue Committee and the Ministry of Finance of  the Republic of Armenia were somewhat different, but as a result of  active discussions they were brought closer together.

For example, Badasyan continued, the volume of "shadow" through the  value added tax is 120 billion drams, approximately the same amount  falls on the income tax. To identify abuses in the tax sphere, it is  necessary to work to strengthen the capabilities of department  employees. In particular, this can be done using desk research, the  application mechanisms of which are important to improve with the use  of artificial intelligence to identify existing risks. "It is also  necessary to be attentive to information coming from third parties  and government agencies. Cooperation with international partners with  whom the exchange of tax information is planned, including the  automatic exchange of information on financial accounts, is also very  important," Badasyan emphasized.

He also pointed out the low culture of tax payment by individuals.  For example, after the provisions of the law on the application of  uniform income tax rates in relation to micro-businesses came into  force in July of this year, 2 thousand jobs "disappeared" from this  sector in August, who either quit or quit their jobs "on paper."  Inspections have begun in this area. However, according to Badasyan,  as long as the micro-business system operates, abuses in it will not  stop.

The head of the State Revenue Committee also emphasized that the  overwhelming majority of the department's work was focused on  business taxation, and individuals, as a rule, fell out of the  research.  Badasyan expressed hope for the use of a system of  mandatory income declaration to create a tax culture among  individuals. To solve these problems, a separate division is being  created in the State Revenue Committee.