Announcement

Collapse
No announcement yet.

PAP MP: Government has set tax officials against SMEs again

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • PAP MP: Government has set tax officials against SMEs again

    MP from Prosperous Armenia Party: Armenian Government has set tax
    officials against SMEs again

    by Gayane Isahakyan
    Sunday, October 5, 11:29


    By adopting the new Law on Turnover Tax, the Armenian Government has
    actually toughened the tax administration of small and medium
    enterprises again, MP from the Prosperous Armenia Party (PAP) Faction
    Mikayel Melkumyan said at today's press conference. According to the
    law, the document control has become compulsory for these entities.

    He said that in case of compulsory document control the tax audits of
    SMEs will become inevitable some time, because the given law aims to
    reveal the real turnover of the enterprises and, consequently, to
    increase the tax revenues. "If these revenues do not grow, the tax
    officials will have to check the documents on turnover of the economic
    entities", he said.

    Melkumyan added that today the ban on different types of inspection of
    SMEs has been cancelled. The ban was imposed in 2009. The new law
    authorizes the tax inspectorate to check the documents of SMEs.

    He pointed out that the PAP voted for the bill in the first reading,
    because the bill stipulated reduction of the turnover tax for SMEs
    from 3.5% to 1%. The party also demanded revising the provision on
    compulsory document control in the second reading. "However, the
    Government took no decisions to change that provision even following
    the two-day talks. Only the Minister of Finance signed a decree on
    abstention from ungrounded inspections of SMEs, except for the risky
    cases", he said.

    According to Melkumyan's estimations, with introduction of compulsory
    document control, the SMEs' turnover will exceed 100 mln AMD and they
    will have to pay VAT. "As a result, the turnover tax will reach 8%,
    and this will lead the enterprises to bankruptcy", he stressed.

    To remind, starting 1 October 2014, the turnover tax for economic
    entities engaged in the field of trade will be reduced from 3.5% to
    1%. A status of the family business will be introduced. The economic
    entities having up to 12 million drams annual turnover will be
    registered as family business and exempted from taxes. Starting 1
    January 2015, the following types of responsibility will be applied to
    SME: a warning for violation of the law, a 20,000 AMD fine for
    repeated violation and a 5% turnover tax for a third case of
    violation. The economic entities violating the Law on Turnover Tax for
    the 4th time will occur in the field of VAT. Starting 1 Jan 2016, a
    SME having no document flow will have to pay the tax at a higher rate
    - 5%. VAT tax will be charged, if an economic entity fails to submit
    document flow for a second time. Alongside with this, a system
    "law-abiding taxpayer" will be introduced. The system implies that SME
    will get out of the shadow and start submitting the necessary
    documents to the taxation bodies. The responsibility for violation of
    the given law and mechanisms of control over administrative violations
    will be toughened as well.

    http://www.arminfo.am/index.cfm?objectid=573B99E0-4C61-11E4-A0060EB7C0D21663

Working...
X