Armenian businessmen prefer tax avoidance because of too high tax rates and poor administration, the lawyer Sergey Marabyan stated at a discussion organized by the Protection of Taxpayers and Businessmen NGO.

According to him, numerous economic entities will “come out of the shadow” provided the tax rates are reduced. Marabyan said that many small and medium businessmen are hardly informed of tax laws or cannot understand them.

“The Tax Code contains so many tortuous definitions that only an experienced lawyer can understand them,” Marabyan said. He added that necessary literature is hardly available in Armenia, whereas it is in great demand.

Businessmen almost always feel guilty in tax inspectors’ presence because of the tortuous laws, Marabyan said. He pointed out that businessmen should apply to experienced lawyers.

Participating in the discussion were representatives of about 30 government and private agencies. Lusine Gurjinyan of the Rights without Borders organization reported that Armenian citizens often complain about government agencies, particularly about the State Revenue Committee.

In 60% of cases courts return verdicts in citizens’ favor, which is evidence that tax inspectors are not so competent, Gurjinyan said.

Representatives of the RA State Revenue Committee attended the meeting as well.

T.P.