Armenian authorities aim to establish a stable and favorable  environment for SMEs in the market

ArmInfo. The Armenian authorities aim to establish a predictable environment for small and medium-sized businesses in the market adjusting the penalties for  non-compliance with cash register regulations (CRS). The National  Assembly of the Republic of Armenia is holding discussions on  proposed amendments to the Tax Code On December 3, in the first  reading.

According to the Minister of Economy of the Republic of Armenia  Gevork Papoyan, the level of accountability will be determined based  on the type of violation and the extent of damage caused to the  state. Specifically, Article 416.2 of the Tax Code specifies that  organizations, individual entrepreneurs or notaries who breach the  regulations for CCA usage, may face a penalty of 200,000 drams and  0.5% of their recorded turnover from the preceding quarter, with a  maximum limit of 10 mln drams.  Papoyan emphasized that the fine for  violating the CCA rules remains consistent regardless the type of  violation. However, according to him, while all violations are  subject to the same penalty, the reasons  and consequences of each  violation vary significantly. As a result, the impact on state budget  revenues differs, making it disproportionate to impose identical  fines for all violations.

It is proposed to maintain the level of responsibility in case of  failure to issue a cash receipt, a price misprint or any other  violation of the CCA resulting in tax implications. However, if all  CCA usage rules are observed, but incorrect codes are provided, the  level of responsibility should be reduced. Specifically, in the  latter case, it is recommended to apply a warning, with a fine of  50,000 drams imposed, if the same violation occurs within a year.