By reading this list and comparing it to the previous ones, we can make comparisons and image what the businesses and taxation bodies actually do. During the past five years, Armenian economy has been growing at a double-digit rate We wonder whether in parallel to that double-digit economic growth, tax collection has also grown at a rapid pace. By reading the list, we may also find out which businesses are more successful: importers, exporters or people providing services. Besides that, by comparing that information we may assume whether the authorities are telling the truth when they say that only 40% of businesses don’t pay taxes or the opposition is telling the truth when it says that over 70% of businesses don’t pay taxes. As for the biggest companies, by finding out about the capacity of taxes they have paid we may assume whether they pay all the dues or not.
On the basis of these lists published during the past couple of years, we may assume that the income capacities of those businesses have not changed much. As they usually say, “they have minimum income”. The list shows that the amount of indirect taxes, i.e. taxes paid directly by consumers as excise and VAT, is more than the amount of taxes paid by producers as income tax. “Armentel”, ARG, “Zvartnots”, “Kotayk Beer factory” are included in that list too. For instance, “Jermuk Group” has paid ten times more indirect taxes than direct taxes from its own income. Also “The gold mining factor of Ararat” does not like paying taxes from its income too. This company has paid 120 million dram as indirect tax and 19 million as direct tax. As for “Mika Cement”, this company is in an even worse situation; it has paid 245 million dram as indirect tax, however, has not paid any direct taxes (anyhow, there were no figures in the relevant fields in the list). However, there are companies that have rapidly increased the amounts they pay as taxes to the government throughout the course of this year. For instance, “Big Wheel” company, which paid 48 million dram as tax and placed 213th last year, has paid 80 million dram this year. In addition, this company has also paid 577 million dram as indirect tax, thus this company is a big tax-payer. This company is in the 45th place in the list now. It is said that the biggest stock holder in this company is the former head of the president’s personnel, Artashes Tumanyan. Based on these figures, it seems that after Mr. Tumanyan’s resignation this company has started paying its dues well. The manager of this company Levon Zoryan does not agree with this assumption. “We have just increased the trade capacities this year; we have found new partners and import more products,” said Levon Zoryan.
Despite what Mr. Zoryan assures, perhaps the rumors claiming that the “Big Wheel” has started fully paying its dues only after the resignation of A. Tumanyan are true. There is another thing that fits in with this: during the past nine months of 2006 “GoshGaz” has paid 11 million dram as taxes, when in the same period of the previous year it had only paid 63 million dram. In parallel to this, the taxation services have taxed less from several other big companies. Last year “Multi Group” concern paid 154 million dram, but this year it paid 133 million dram only. Furthermore, the “Champagne factory of Yerevan” and “Vedi Alco” companies paid fewer taxes-200 million drams less this year. We asked these companies and were informed that the reason was the fact that their product circulation had reduced.
“The trade capacities have reduced; thus our production reduced as well”, says head of “Vedi Alco” company, Manvel Ghazaryan, “That is the reason why we paid less tax. Our market has imported more vodka from abroad and this has affected the domestic production”.
“Armenia imports large amounts of vodka from Russia”, says the chief accountant of “Yerevan Champaign and wine factory”, Hovhannes Iskajyan, “The prices are almost the same as those of local production. If consumers buy those products, it means that the quality is good as well. Nevertheless, if those products have such good quality, how can they be so cheap? We don’t understand this”.
It is almost the same situation in the juice market and it is said that many companies don’t pay customs fees and other taxes when importing juice to Armenia. Recently, the press wrote that the business of illegal import of vodka in Armenia was coordinated and backed by Gagik Khachatryan, deputy head of the RA customs committee. Besides these two companies, there are other companies that have also had losses. Based on the mentioned information, we may assume that importing is a better business in Armenia than exporting and producing. According to the official statistics information, this year export went down by 3,4%, while import went up by 20%.
Hotel businesses are not included in the list of biggest tax-payers. There are only three hotels in the list of the biggest 300 tax-payers of Armenia. For instance, the hotel of the RA minister of transport and communication (“Metropol” hotel) is not included in that list. It seems that this is not a profitable business for the minister If it is not profitable, I wonder why the minister managed to build two more floors on the hotel building. According to the information of the RA ministry of trade and economy, this year the number of tourists visiting Armenia has increased. Over 10,000 tourists visited Armenia in the first part of the year. However, tourists visit Armenia mostly at the beginning of the second part of the year. Nevertheless, in parallel to that growth in the field of tourism hotels don’t pay more taxes, which means that most of those businesses don’t pay their dues and taxes. It is worth mentioning the information concerning “Conversebank” as well, which paid 729 million dram to the state during the last months last year, however, this year the bank is not included in the list of biggest tax-paying companies. The chief accountant of the bank Arshak Karakhanyan informed “168 Hours” that the name of the bank’s branch should not be written separately. “However, our incomes have increased and thus the taxes paid had to increase as well”, said A. Karakhanyan and added that the information in the list was wrong.
As for the information of the taxation department, according to that, during the past nine months of this year the bank paid over 514 million dram to the state.
It is said that the biggest tax payers do not pay taxes so that they have enough money before the upcoming parliamentary elections.