Amendments have been made that tighten responsibility for violations in the submission and publication of financial reporting, as well as for hiring a chief accountant who does not meet the qualification requirements established by law. It is important to note that in both cases, the head of the organization is responsible for the administrative offense.
Below is a detailed analysis of the amendments.
Amendment 1: Non-submission or non-publication of financial reporting (Article 169.12 in the new edition)
The new provisions establish a progressive three-tier system of fines.
What is considered a violation:
Non-submission of financial reporting to state authorities within the established deadlines;
Non-publication of reporting in the manner and within the deadlines established by law;
Failure to place a link to the website with published reporting on the official portal of public notifications of the RA www.azdarar.am; Non-provision of reports or links to them within the established deadlines based on requests from individuals or legal entities.
Fine amounts:
In the case of a first violation, a fine of 150 times the minimum wage (MW) is imposed.
If the violation is not rectified within 30 days after the decision to impose the first fine comes into force, a fine of 1500 times the MW is imposed.
If the violation is not rectified within the subsequent 30 days after the decision to impose the second fine comes into force, the fine amounts to 4500 times the MW.
Amendment 2: Hiring a chief accountant who does not meet qualification requirements (Article 169.13 in the new edition)
Control over the quality of accounting in certain organizations has also been tightened.
Which organizations does this apply to?
Organizations representing public interest;
Large and medium-sized organizations;
Public sector organizations defined by the Government.
What is considered a violation:
Hiring a chief accountant in the above-mentioned organizations who does not meet the qualification requirements established by the Law on Accounting, or failure to rectify this violation within the established timeframe.
Fine amounts:
In the case of a first violation (hiring an accountant who does not meet the requirements), a fine of 100 times the MW is imposed.
If the violation is not rectified within 30 days from the moment the decision to impose the fine comes into force, a fine of 1000 times the MW is imposed.
Main conclusions
As a result of these legislative changes, direct responsibility is established for the head of the organization, and the amount of financial sanctions is significantly increased, acquiring a progressive nature.
The law will apply to administrative proceedings initiated after its entry into force. Organizations should review their internal procedures to align them with the new, stricter requirements.
Below is a detailed analysis of the amendments.
Amendment 1: Non-submission or non-publication of financial reporting (Article 169.12 in the new edition)
The new provisions establish a progressive three-tier system of fines.
What is considered a violation:
Non-submission of financial reporting to state authorities within the established deadlines;
Non-publication of reporting in the manner and within the deadlines established by law;
Failure to place a link to the website with published reporting on the official portal of public notifications of the RA www.azdarar.am; Non-provision of reports or links to them within the established deadlines based on requests from individuals or legal entities.
Fine amounts:
In the case of a first violation, a fine of 150 times the minimum wage (MW) is imposed.
If the violation is not rectified within 30 days after the decision to impose the first fine comes into force, a fine of 1500 times the MW is imposed.
If the violation is not rectified within the subsequent 30 days after the decision to impose the second fine comes into force, the fine amounts to 4500 times the MW.
Amendment 2: Hiring a chief accountant who does not meet qualification requirements (Article 169.13 in the new edition)
Control over the quality of accounting in certain organizations has also been tightened.
Which organizations does this apply to?
Organizations representing public interest;
Large and medium-sized organizations;
Public sector organizations defined by the Government.
What is considered a violation:
Hiring a chief accountant in the above-mentioned organizations who does not meet the qualification requirements established by the Law on Accounting, or failure to rectify this violation within the established timeframe.
Fine amounts:
In the case of a first violation (hiring an accountant who does not meet the requirements), a fine of 100 times the MW is imposed.
If the violation is not rectified within 30 days from the moment the decision to impose the fine comes into force, a fine of 1000 times the MW is imposed.
Main conclusions
As a result of these legislative changes, direct responsibility is established for the head of the organization, and the amount of financial sanctions is significantly increased, acquiring a progressive nature.
The law will apply to administrative proceedings initiated after its entry into force. Organizations should review their internal procedures to align them with the new, stricter requirements.