The list of major taxpayers, which is being posted by the State revenue Committee every quarter, has become quite popular among those citizens of Armenia, who are more or less interested in the economy of our country.
In particular, the economists, journalists, statesmen, the major taxpayers themselves, are waiting impatiently for the next posting of the list by trying to forecast which of the companies will lead the list. If it continues that way, it is not excluded that the local bookmakers will start to bet which of the oligarchs will lead the list. However, besides 1000 major taxpayers’ list, which depicts the State Revenue Committee, also posts other lists. One of them is called the list of companies, which have worked with damages and is no less interesting than the original list of major taxpayers. If the original shows the amount of taxes paid then this one shows the amount of damages of these companies.
According to the official website of the State Revenue Committee the 2010 table includes the names of 10 companies, which have worked with most of damage. The tax body also included in the list the names of companies, which in 2010 registered damage in the amount of 1 million of more Drams. In total, this list includes 822 companies, the total damage of which amounts to 257 billion AMD. But the picture becomes more interesting when we are reviewing separate sectors or separate companies. The first place of the list occupies ArmGazArd, which according to the SRC registered a damage of 88,4 billion AMD. This is an enormous figure, which is approximately 2240 million USD. Let us try to understand what this means (though it’s not easy). Usually the damages of a company of the year mean that the expenses exceeded the profit. If ArmGazArd’s damage in 2010 amounted to 240 million USD it means that logically the company made expenses at least in the same amount (if we consider that it didn’t have any profit). Making expenses in its turn means doing something and in this case in great volumes. But there are only a very few people, who’d be able to provide a logical explanation on what this company exactly does. And this is surprising because this company has showed expenses in the amount of 240 million USD and not a dozen thousands of dollars. In order to understand this unclear situation it is necessary to review the activity of the company in the retrospect. In the 90s ArmGazArd was really active in its operation. It was managing the whole gas economy of the country (which is currently done by ArmRusGazArd). In 1997 ArmGazArd was divided into three parts – ArmyGazArd, ArmGas and ArmTransGaz. Based on ArmGaz the Russian ArmRusGazArd was established. As of ArmGazArs then it was functioning only formally on paper. It mainly was conducting licensing activities. According to the decrees of the government of 2005-2006 such companies as HayEnergo, Hrazdan HES, Sevan-Hrazdan Cascade CJSC, Nairit, Vanadzor Chemical Complex joined ArmGazArd. And later all these companies were privatized. More clearly, ArmGazArd was a “washing machine” for cleansing the energy objects subject to privatization. All the companies that had debts were included in ArmGazArd, as a result of which the debts of all these other companies have become the debts of ArmGazArd. And later these companies were privatized debtless leaving all the debts to ArmGazArd. Moreover, there are quite suspicious stories connected with the owners of all these privatized companies. And if the rumors that all the energy producing companies were actually privatized by our statesmen (by a third party) then it turns out that the main goal of ArmGazArd is to cleanse these companies from debts and leave these debts on the shoulders of the state. It means that the debt of ArmGazArd in the amount of 88 billion AMD is the debt of the Armenian energy companies. In other words it is the “excrement left in the filter.” By continuing the theme of gas let us speak about ArmRusGazArd. As of the results of 2010 the company worked with the damage of 7.8 billion AMD. A lot has been spoken about the gas monopolist of the country. The company explains this damage by the cut of consumption rates and the investments made during years. Nairit is a separate and entangled theme. Let us only suffice with the fact that last year the company closed year with a debt in the amount of 30,3 billion AMD. There are companies, which we can understand why appeared in a plummet. For example, Ucom closed the year with a damage of 135,8 billion AMD. It is clear because the company is dynamically developing and is making intensive investments. Or for example the Water Company Sil. It is quite clear that the Sukiasyans have to invest great efforts and money in order to be able to compete with Noy. There are companies in the case of which there is even no need for explanations. We can understand them by merely smiling. The examples of such cases are the Armenian Circus and Armenikum. But there are also companies in the case of which it is hard to understand the amount of their damage. We can more correctly say that there are such sectors. The brightest example is the mining sector. Due to the economic crisis this branch of economy has majorly suffered in Armenia because the price of metals registered a great slump. However, after the crisis in 2010 the prices of metals has registered a double raise and reimbursed the past damages. The indexes of Zangezur Copper Factory are the best evidence of that. The number one taxpayer of the country has yielded in several ranks by 2009 results but then it strengthened its position. For example, Akhtala mining factory closed the year with a damage of 489 million AMD. If in the case of Akhtala it is possible to find explanation (the owner and director Poghosyan was busy doing other things instead of focusing on his business) then in the case of others there is no explanation. The Copper factory of Agarak closed the year with 3,6 billion damage. Let us mention that the majority of construction companies have closed the year with damages as well in 2010. Thus, the damage of Glendale Hills amounted to 3,1 billion AMD. Itarco Construction, Megeryan Shin and other companies also registered damages. Of course, many people understand that in Armenia working with damages is a pretty conditional thing. And the majority of companies magnify their expenses in order not to pay profit taxes. In developed market economies try to declare more profits in order to raise their market value and reputation. In our country in our country we have a different picture and it’s understandable because in our country the corporative management system is developed. We don’t have a stock market and neither do we have honest relations to our taxes.