The Human Rights Defender
has published a report on the fact that a high fixed rate of fines is provided
for by the Tax Code for violations of the rules of the use of Cash Control
Machines(CCMs).
In relation to this
issue, the Defender has applied to the Constitutional Court: The Defender is
disputing that by setting fixed rates of fines, the circumstances of the
violations are not taken into consideration. This approach does not provide for
an individual approach.
This refers to Article
416 (1-5.1) of the Tax Code, according to which the organization, sole
proprietor, or notary is fined 300.000 Drams for the lack of Cash Control
Machines, while an amount of 1.000.000 Drams are imposed for providing catering
activities in a public catering facility. That is, the fines are predetermined
by the tax body, from which there are no exemptions.
In particular, fines are
imposed in a general term; they are imposed without taking into consideration
the turnover of the business entity engaged in entrepreneurial activity.
Fines are imposed when
violations are detected from the first time, without taking into consideration
the objective and subjective factors of the violation.
The high level of the
rates of the fines is problematic, which in contrast to large organizations
that have been operating for years, puts new and/or small organizations in a
difficult economic situation, and for some businesses it even leads to the
cessation of entrepreneurial activities.
The above-mentioned
situation does not meet the constitutional requirement to guarantee economic
and entrepreneurial activity. This in
its turn leads to the disproportionate interference by the tax bodies in the
constitutional right to engage in economic, including entrepreneurial
activities.
Mr. Arman Tatoyan
The Human Rights Defender
of Armenia
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