Armenia’s State Revenue Committee (SRC) said on Wednesday that it more than doubled last year the total amount of additional taxes collected as a result of tax audits.
The head of the government agency, Davit Ananian, stressed that it achieved the sharp increase despite reducing the number of the audits of company accounts by 12.5 percent.
“In 1,020 audits conducted in 2019, we mandated the payment of 83 billion drams ($174 million) in additional sums,” the Armenpress news agency quoted Ananian as telling journalists.
By contrast, he said, the SRC conducted in 2018 1,166 audits but raised only about 36 billion drams as a result.
The SRC’s overall tax receipts rose by 16 percent, to just over 1.5 trillion drams ($3.2 billion), last year. Government officials say this sizable increase was made possible by SRC’s continued efforts to improve tax administration and combat tax evasion. Faster economic growth recorded in Armenia also contributed to it.
During such audits companies inspected by the SRC are allowed to adjust their revenues and avoid penalties. They will risk criminal proceedings if tax inspectors suspect them of deliberately underreporting their earnings.
One of Ananian’s deputies, Eduard Hovannisian, said in December that the SRC is now conducting 330 criminal investigations into suspected instances of serious tax fraud.
The Armenian government’s tax revenues are projected to reach almost 1.7 trillion drams (US$3.6 billion) this year.