The business will be given 1 week to pay the taxes. In case of non-payment of taxes within one week, the taxman will seize business accounts, movable and immovable properties.
After that, if the taxes are not paid within 30 days, they will apply to the enforcement service with the demand to confiscate the liabilities.
Legislative changes were made in the Tax Code and a new tax payment procedure was established, by which they will force businesses to pay taxes within 7 days from July 1.
“According to the new regulation, a reminder will be sent to the taxpayer on the day of the tax liability through the electronic reporting system. If the obligation is not settled within 7 calendar days after sending the reminder, and the submitted objections are not accepted or objections are not submitted, the tax authority will adopt decisions on the collection of the obligation on the same day, as well as on imposing a lien on the funds of the taxpayer’s bank accounts and movable and immovable property subject to registration or accounting in accordance with the law.
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If the tax liability is not settled within 30 days after the date of the injunction, the appropriate decisions will be submitted to the Enforcement Service for the purpose of enforcement,” the State Revenue Committee warns businesses.
What this means for business is not difficult to understand. All those who, for various reasons, are unable to fulfill their tax obligations on time will be in danger of being hit by the taxman and being shut down.
It’s a little bit, they will block the accounts, and they will put a hold on movable and immovable property. The property that has production significance.
This means that they will paralyze the business activity, they will force them to stop the work until they fulfill their tax obligations.
Timely fulfillment of tax obligations is the duty of any business. But it is not a good day when the business cannot pay taxes on time. That is why they usually use the mechanism of fines. Penalties are calculated for unpaid taxes.
This approach is important because it gives the business time and opportunity to fix its back. It can happen that for 1 month, 2 months, maybe 3 months the business affairs will go badly and it will not be able to pay taxes. After that, the financial problems will be settled, and it will be able to fulfill not only current, but also previously incurred obligations.
This previously operating system gave business a chance to work and recover. Something that, in fact, is excluded by the new regulations.
With the new regulations, business does not get time to come to its senses. The taxman suddenly appears and seizes the business’s accounts, deprives him of the opportunity to use his movable and immovable property. He just locks and closes the doors of the business. He gives time to pay the taxes within 30 days, otherwise he threatens to confiscate the property.
After the expiration of 30 days, enforcement officers enter and confiscate the movable and immovable properties under arrest. Naturally, after the arrest, they are put up for sale in order to pay the business taxes.
Here is the entire process that will take place with these new tax regulations, which will be imposed on businesses that cannot pay taxes on time from July 1. They will no longer wait when they will have the opportunity to do it.
It is difficult to say what part of businesses today are unable to fulfill their tax obligations on time. But there are certainly not a few of them. And all of them, after these new regulations, will be in danger of being hit, of stopping their business activities.
There is no official explanation as to why they decided to put the business under such severe administrative pressure right now. It can be assumed that there has been an increase in the number of businesses that are unable to pay taxes on time and accumulate overdue debts.
Of course, the problem of overdue debts has always existed in Armenia, but there was never an attempt to introduce such regulations before. It is not excluded that now this phenomenon has spread so much that they have gone to such strictures, not even taking into account that it is a serious risk for ensuring the continuity of business activities. This will lead to the bankruptcy and closure of many businesses, the consequences of which will later be expressed both on the economy and on the same tax revenues.
Closing a business is in no one’s interest, but this will lead to it. There are many businesses that cannot pay taxes on time due to financial problems. Under these new arrangements, they will have to raise funds to pay or be forced into bankruptcy.
If the problem is in ensuring the current tax revenues of the budget, judging by the official announcements, there should be no need to introduce such strictures. They even talk about tax overpayment. Although, on the other hand, on the eve of the elections, they took so many new spending obligations, which are not supported by the tax revenues provided by the state budget. And now, as a matter of fact, they are trying to solve these problems with such strictures.
For the same purpose, immediately after the elections, they increased the tax burden on sub-excise goods, from January 1 they will implement widespread stamping of goods, they are going to deprive the micro-enterprises that do not issue 3 times a tax receipt from the opportunity to work in the field of micro-business and turnover tax for 5 years.
It is expected that in the near future such “innocent” tax regulations will continue in various fields, which will burden businesses and consumers. They are already planning to charge a state duty even for importing mobile phones for personal use.
HAKOB KOCHARYAN
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