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ARMENIAN GOVERNMENT PREFERS BULLYING
Vestnik Kavkaza, Russia
Feb 18 2014
18 February 2014 - 3:05pm
Susanna Petrosyan, Yerevan. Exclusively to Vestnik Kavkaza
An absurd situation occurred in Armenia over the decision by the
Constitutional Court on January 24th on the timely release of
responsibility for non-payment of pension fees.
First of all, five-per-cent assignments to pension funds from salaries
of citizens are taking place in state facilities, including schools,
ministries, various departments and enterprises.
Secondly, the Ministry of Finances, the Committee for Budget Revenues
and the Central Bank stated on liabilities of economic entities and
possible consequences in case of non-payment of the assignments.
Despite the decision by the Constitutional Court, the minister of
finances David Sarkisyan stated that since February 20th economic
entities are obliged to transfer first assignments to a certain account
"Bridge."
"Employers as tax agents are obliged to make compulsory accumulated
payments," the minister of labor and social affairs Artem Asatryan
stated.
Tension is felt in a statement by the Central Bank on February 7th.
The Bank warns about "heavy consequences" of non-payment of compulsory
pension fees. The warning says that if contested items of the law
on funded pension are found constitutional by the CC, participants
of the Defined Contribution Pension System will have to pay fees
for a previous period. At the same time, the CB reserves a right for
commenting the court's decision: "The CC didn't release participants
of the Defined Contribution Pension System from fees by its procedural
decision. Operation of these items of the law hasn't been suspended."
Thirdly, it appeared that the current approaches in the tax sphere
prevent the CC's decision. Electronic reports approved by the Committee
of Budget Revenues don't let citizens use this right.
According to the opposition, income tax forms for employers are made
in such a way that it is impossible to add pension fees into them. In
other case, they will have to reject filling tax report, and it could
lead to administrative sanctions.
The Ministry of Finances and Social Affairs, the Committee for Budget
Revenues, and the Central Bank chose tactics of pressure and bullying
citizens, despite the decision by the CC. The tactics has two reasons.
Probably pension fees are a part of an acute economic scheme by the
government, which is aimed at filling "budget gaps" and other goals.
Secondly, the government didn't expect such a powerful negative
reaction from the society and is at a loss, while bullying is a sign
of panic.
Vestnik Kavkaza, Russia
Feb 18 2014
18 February 2014 - 3:05pm
Susanna Petrosyan, Yerevan. Exclusively to Vestnik Kavkaza
An absurd situation occurred in Armenia over the decision by the
Constitutional Court on January 24th on the timely release of
responsibility for non-payment of pension fees.
First of all, five-per-cent assignments to pension funds from salaries
of citizens are taking place in state facilities, including schools,
ministries, various departments and enterprises.
Secondly, the Ministry of Finances, the Committee for Budget Revenues
and the Central Bank stated on liabilities of economic entities and
possible consequences in case of non-payment of the assignments.
Despite the decision by the Constitutional Court, the minister of
finances David Sarkisyan stated that since February 20th economic
entities are obliged to transfer first assignments to a certain account
"Bridge."
"Employers as tax agents are obliged to make compulsory accumulated
payments," the minister of labor and social affairs Artem Asatryan
stated.
Tension is felt in a statement by the Central Bank on February 7th.
The Bank warns about "heavy consequences" of non-payment of compulsory
pension fees. The warning says that if contested items of the law
on funded pension are found constitutional by the CC, participants
of the Defined Contribution Pension System will have to pay fees
for a previous period. At the same time, the CB reserves a right for
commenting the court's decision: "The CC didn't release participants
of the Defined Contribution Pension System from fees by its procedural
decision. Operation of these items of the law hasn't been suspended."
Thirdly, it appeared that the current approaches in the tax sphere
prevent the CC's decision. Electronic reports approved by the Committee
of Budget Revenues don't let citizens use this right.
According to the opposition, income tax forms for employers are made
in such a way that it is impossible to add pension fees into them. In
other case, they will have to reject filling tax report, and it could
lead to administrative sanctions.
The Ministry of Finances and Social Affairs, the Committee for Budget
Revenues, and the Central Bank chose tactics of pressure and bullying
citizens, despite the decision by the CC. The tactics has two reasons.
Probably pension fees are a part of an acute economic scheme by the
government, which is aimed at filling "budget gaps" and other goals.
Secondly, the government didn't expect such a powerful negative
reaction from the society and is at a loss, while bullying is a sign
of panic.