Company Linked to Serzh Sarkisian’s Brother Fined for Tax Evasion

YEREVAN — A real estate company linked to a brother of former President Serzh Sarkisian has reportedly agreed to pay the Armenian government 800 million drams ($1.7 million) after being accused by it of tax evasion.

The State Revenue Committee (SRC) made the announcement on Friday one week after tax auditors raided the Yerevan offices of the company, GLG Project. The SRC initially accused it of evading 300 million drams in various taxes through bankruptcy fraud.

In its latest statement, the tax collection agency said the “damage” has been revised upwards as a result of “some investigative and judicial actions.” The revised sum has already been paid to the state budget, it said.

It remains unclear whether GLG Project has admitted to tax fraud.

The case against the company stems from an office building constructed by it in downtown Yerevan in 2013-2017. The SRC claims that GLG paid only 3.5 million drams ($7,300) in taxes during the construction.

According to the SRC, a charity co-founded and run by Levon Sarkisian, the former president’s youngest brother, holds a 40 percent stake in GLG. Levon Sarkisian’s son Narek owns another 20 percent of the company stock. Neither man has commented on the case so far.

On June 25, the Armenian police detained the ex-president’s second brother, Aleksandr Sarkisian, on suspicion of illegal arms possession. He was set free a few hours later. The national police chief, Valeri Osipian, said on Thursday that weapons seized from Sarkisian and his bodyguards were owned legally.