Armenia's SRC uncovers 210 million dram fuel tax evasion scheme

Armenia's State Revenue Committee (SRC) has uncovered a large-scale tax evasion scheme involving a fuel retailer operating on the Yerevan-Sevan highway, with investigators estimating that the company failed to pay about 210 million drams in taxes.

In a statement released on Tuesday, the SRC said its Investigation and Operational Intelligence Department received intelligence indicating that the company had failed to declare the full proceeds from its retail fuel sales in tax filings submitted to the authorities.

Investigators carried out extensive operational measures, extracting and analysing sales data from fuel dispensing equipment installed at the company's filling stations. They also examined sales records and notebooks containing handwritten entries.

According to the SRC, the findings were compared with tax returns filed by the company for the same period. Authorities concluded that between 2022 and 2026 the company underreported approximately 600 million drams in sales of compressed natural gas, liquefied petroleum gas (LPG), petrol and diesel fuel.

As a result, the company allegedly failed to calculate and pay around 210 million drams in taxes to the state budget, the SRC said.

The case has been referred to the Economic Crimes and Smuggling Investigation Department of Armenia's Investigative Committee, which has opened criminal proceedings under the relevant article of the Criminal Code.

The SRC said it would continue efforts to detect and prevent tax-related offences, urging businesses to comply with tax legislation and reminding retailers to provide customers with fiscal receipts or other legally required sales documents.