The National Security Service adjunct to the Prime Minister of the Republic of Armenia, within the implementation of its functions to fight against corruption, economic crimes, uncovered a criminal scheme within which a major company operating in RA was maliciously evading paying taxes, duties and other mandatory payments in especially big amount. With that, high-level officials of the RA State Revenue Committee (SRC) were directly associated with the formation and organization of the activities of the company.
The National Security Service of RA obtained information, according to which in June 2017 Norfolk Project LP, LLC (registered in Scotland /UK/, according to preliminary information – in the offshore territory) founded in RA the Norfolk Consulting, LLC, the RA citizen Armen Unanyan was appointed as Director General. The aim was to take away from the so-called 9 cargo companies, belonging to citizens engaged in small and medium-sized enterprises, the cargo transportation and customs clearance business and to centralize it in a single-company monopoly. Subsequently, high-level officials of the State Revenue Committee of RA, by presenting to the General Director of Norfolk Consulting, LLC the heads of the given cargo companies, informed that the collective cargo transported by trucks from Turkey, China and the United Arab Emirates were henceforth to get customs clearance solely via Norfolk Consulting, LLC; besides, for each 1 kg of imported cargo they were to pay to the company: in case of Turkey – 1,65 USD (including VAT, customs fees and customs duties) and 0,70 USD (for the service); in case of China – 2,55 USD (including VAT, customs fees and customs duties) and 0,70 USD (for the service), and in case of UAE – 2,55 USD (including VAT, customs fees and customs duties) and 0,45 USD (for the service). It is noteworthy that in the territory of the SRC dissolved specialized customs building for customs clearing of excise taxable goods, rentable offices were provided for a rent to Norfolk Consulting, LLC, for conducting its activities, with an obvious aim, also in this way to emphasize to business entities the special privileged position of the given company. Cargo companies, in essence, not having another option, accepted the financially unfavorable offer for cooperation, started to get customs clearance for the transported goods solely via Norfolk Consulting, LLC, and paid the demanded money in cash, without proper registrations.
The representatives of Norfolk Consulting, LLC often did not declare the imported goods in their real assortment and names and did not get customs clearance for them, and with this, decreased the amounts to be paid to the State; besides that, they created unequal competitive conditions for those citizens, who were importing similar goods not via their company.
As a result of a specialized preliminary analysis it was calculated that from 1 August 2017 to 1 May 2018, Norfolk Consulting, LLC received in cash, via the representatives of the cargo companies, nearly 37.6 mln. USD, of which 26.4 mln. USD – for getting the customs clearance of the goods imported to RA, and 11.2 mln. USD – in exchange for the services provided to business entities. As a result of not fully reflecting the given sums in taxation-based documents, the company did not pay to the State budget more than 3,3 billion Armenian drams equivalent to, as a whole, 7 mln. USD. This means that during 9 months of its activity, the company income obtained illegally may constitute nearly 7 mln. USD. The actual accurate amount of the damage caused to the State will be possible to establish within the framework of the forensic accounting examination, set in a prescribed manner, on the company activities.
A criminal case on the fact is instituted in the Investigation Directorate of the NSS of RA under part 2 of Article 205 (Evasion from taxes, duties or other mandatory payments) and part 2 of Article 308 (Abusing of official authority negligently causing grave consequences). Within its framework, more than 10 searches were simultaneously conducted as a result of which from the office of Norfolk Consulting, LLC and the private house of the company director nearly 500 000 USD, bank cards, bank and customs documents significant for the case were seized. During the preliminary investigation, the representatives of cargo companies gave testimony on the case, disclosing the criminal scheme.
Director General of Norfolk Consulting, LLC Armen Unanyan and three other designated employees are arrested on suspicion of committing the crime envisaged by part 2 of Article 205 of the RA Criminal Code.
Two former deputies of the Chairman of the State Revenue Committee of RA were interrogated as witnesses.
The preliminary investigation goes on; measures are taken to establish all the circumstances significant for the case and other associated persons, as well as to fully compensate the damage caused. The National Security Service will be adamantly consistent in preventing and uncovering such phenomena.
Note: The suspect or accused of an alleged crime is considered innocent as long as his guilt is not proven in a manner prescribed by the Code of Criminal Procedure of RA - by the court decision entered into legal force