Today the Human Rights Defender Arman Tatoyan made a number of recommendations on the draft Tax Code of RA.
Taking into account the importance of the Draft for the interest of businessmen and, generally, the protection of taxpayers’ rights, the Human Rights Defender studied it.
The study concerns the current situation in the field of tax legislation, the process of public discussions on the draft Tax Code, the concerns about it among the public and professional circles, as well as concrete recommendations on the organization of the process.
Besides the above mentioned, the study also addresses the specific arrangements of the Draft, the main considerations about which are as follows:
- The Draft proposes increasing the income tax from 26% to 28% for the wages 120001-1000000 AMD. This way the income tax increases for people earning the average wage, and, as a result, the tax burden for most of the population is not reduced, but on the contrary, increases.
- The Draft stipulates that a turnover taxpayer can be the commercial entity, the entrepreneur and the notary whose sum of the turnover and other incomes for all types of activities for the previous tax year does not exceed the sum of 40 million AMD (...). In case of exceeding the specified 40 million AMD, VAT will be levied on the commercial entity, the entrepreneur and the notary. We propose to review lowering the threshold of the turnover tax rates proposed by the Draft, as the option proposed by the Draft is actually a regress in the context of both current regulations, and of the legislation in force till 2014.
- According to the Draft for the violation of tax legislation taxpayers or tax agents are subject to tax liability solely pursuant to the Code and on the basis and order defined by RA laws on payments. Whereas in the RA Code on Administrative Offences there are a number of similar violations in case of which administrative liability is applied. We recommend that for the violation of tax legislation by taxpayers and tax agents the tax liability be specified in such a way that the possibility of being subject to double liability conditioned by the legal status of the person before the law who is subject to tax and administrative liability be excluded.
All the recommendations of the Human Rights Defender on the draft law can be found here.