Armenia uncovers fictitious document scheme worth $9 million

Tax inspectors of Armenia's State Revenue Committee have uncovered a scheme involving shell companies through which invoices worth more than $9 million were issued.

This was reported by the agency's press service.

According to the SRC, the companies were registered in the names of individuals who were not actually engaged in entrepreneurial activity. Some of them had previous criminal convictions.

The scheme was two-tiered. Some fictitious companies issued invoices to other front firms, which in turn drew up documents for actually operating enterprises.

The invoices received were used to artificially increase expenses and VAT tax deductions, which allowed the companies to understate their taxable profit. The fictitious documents were mainly drawn up for construction work and the sale of building materials.

From November 2025 to February 2026, invoices totaling 3.4 billion drams — more than $9 million — were issued through this scheme. As a result, according to the SRC, 557 million drams, or slightly more than $1.5 million, were concealed from taxation.

The fictitious companies themselves understated the figures in their reporting so as not to pay taxes on transactions that were documented on paper but were not actually carried out.

The audit materials have been handed over to Armenia's Investigative Committee, where criminal proceedings have been initiated.

Earlier, the State Revenue Committee noted that the construction sector remains one of the most problematic from the standpoint of tax control.

Source: Sputnik Armenia