Legelata successfully represented the Armenian subsidiary of Saudi Arabia based retail company in the Administrative Court of the Republic of Armenia, where the tax act of tax authorities was being appealed based on legal uncertainty of legislation.
Legelata’s client was fined due to violation of the Law on Value added tax, whereas the reduction of prices by the client was qualified as a “discount” by tax authorities which leads to certain procedures and consequences. Legelata’s team was able to achieve a positive result, and the legal uncertainty was interpreted in client’s favor. Moreover, the actions of tax authorities that were performed with the breach of deadlines as defined under the legislation were defined as illegal intervention with the client’s operation.
This positive outcome of the case sets a precedent for retail companies and creates legal certainty for involvement of new investments into Armenia.