High tax rates cause tax avoidance in Armenia

Armenian businessmen prefer tax avoidance because of too high tax rates and poor administration, lawyer Sergey Marabyan stated at a discussion organized by the Protection of Taxpayers and Businessmen NGO.

According to him, numerous economic entities will “come out of the shadow” provided the tax rates are reduced.

Marabyan said that many small and medium businessmen are hardly informed of tax laws or cannot understand them.

“The Tax Code contains so many tortuous definitions that only an experienced lawyer can understand them,” Marabyan said.

He added that necessary literature is hardly available in Armenia, whereas it is in great demand.

Businessmen almost always feel guilty in tax inspectors’ presence because of the tortuous laws, Marabyan said.

He pointed out that businessmen should apply to experienced lawyers.

/News.am/