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2007 Assessment

Armenia: Integrity Indicators Scorecard

Armenia: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
58	In law, is there a national tax collection agency?	100
59	Is the tax collection agency effective?	88
60	In practice, are tax laws enforced uniformly and without discrimination?	0
61	In law, is there a national customs and excise agency?	100
62	Is the customs and excise agency effective?	100
63	In practice, are customs and excise laws enforced uniformly and without discrimination?	0

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

58: In law, is there a national tax collection agency?

Score:

YES

Comments:

References: The Law on Tax Services of the Republic of Armenia Law on Property www. parliament.am

Is the tax collection agency effective?

59a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments:

References: Interview with Babik Najaryan, deputy head of the State Tax Committee (August 14, 2007, at office)

59b: In practice, the tax agency receives regular funding.

Score:

100

Comments:

References: Interview with Babik Najaryan, deputy head of the State Tax Committee (August 14, 2007, at office)

In practice, are tax laws enforced uniformly and without discrimination?

60: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments: In practice, tax laws in Armenia are forced with discriminations. Most oligarchs and close relatives of governmental authorities don't pay taxes, or pay partly. Although they monopolize the main branches of the economy, they use their political power to avoid paying taxes. The main burden of tax collection lies on small and medium businesses. According to the recent survey of the Foundation for Small and Medium Businesses, the major problems for businesspeople are tax liabilities. In response to "What is the greatest problem in doing business?" 90.4% of the respondents put in first place the tax collection procedure. (See "Combating Corruption: SME Sector Perception and Solutions," Yerevan, 2006, p.12)

References: Interview with the executive director of Foundation for Small and Medium Businesses Narine Mailyan (August 7, 2007) Professional Study, "Combating Corruption: SME Sector Perception and Solutions," Yerevan, 2006

In law, is there a national customs and excise agency?

61: In law, is there a national customs and excise agency?

Score:

YES

Comments:

References: The Law on Customs Services www.parliament.am

Is the customs and excise agency effective?

62a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments:

References: Interview with Hovik Khalikyan, the deputy head of the Araratian Customs Committee on Security Services (July 31, 2007, at office)

62b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments:

References: Interview with Hovik Khalikyan, the deputy head of the Araratian Customs Committee on Security Services (July 31, 2007, at office)

In practice, are customs and excise laws enforced uniformly and without discrimination?

63: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments: In reality, the customs laws are being enforced with discrimination. There is a need to improve the management system of customs authorities and simplify import and export procedures. (See "Improvement and Main Priorities of Combating Corruption in Customs System of Armenia," Yerevan, 2002, pp. 26-29, publisher AFIC)

References: Interview with the executive director of Foundation for Small and Medium Businesses Narine Mailyan (August 7, 2007) Professional research (See "Improvement.and Main Priorities of Combating Corruption in Customs System of Armenia," Yerevan, 2002, pp. 26-29, publisher AFIC)