Tuesday, October 03, 2006

Tax police bribes

A large chunk of the Armenian economy exists beyond the boundaries of the law. It is primarily done to avoid the numerous regulations (and the paperwork which normally involve bribe payouts as well).

One of the major reasons for the so called 'underground economy' is to avoid paying the income taxes, and the employee social security taxes. The tax police let this happen because it is beneficial to them since they know who is who and does what and how much taxes are being evaded. They let everybody be happy for a 'fee'. Sometimes they crack down if there has been a publicized government effort to eradicate tax evasion. Needless to say, the big boys are never touched.

Please feel free to comment on your experiences with and the traditions of the tax police bribery.

2 Comments:

At 10:34 PM, Anonymous Anonymous said...

some official information about tax and general legislation can be found on Parliament.am web site. Some of the areas, ex. about administrative penalties, is difficult to navigate, because of large numbers of amendments and editions.

 
At 7:17 AM, Anonymous Հայաստանցի said...

Today I was robbed by tax department... They put a penalty for not submitting report that was never required. The interesting thing is that these guys asked me to transfer money to a budget accounts. I would believe that everything is within law if they would give me the penalty act, but they refused. I wonder whether this is new generation of bribes - you transfer them directly to the budget using the banking system. Wow! that sounded professional :)

 

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