The Prosecutor General's Office of the Republic of Armenia studied judicial acts rendered by the criminal cases regarding deliberate bankruptcy in order to increase the effectiveness of investigations of these crimes.

 

It was found out that in the disposition of Art. 193 of the RA Criminal Code, the wording “deliberate creation of signs of insolvency or an increase in their size” is rather vague, which prevents the identification of these cases and the implementation of criminal liability. It is not specified what circumstances, legal facts can be qualified as signs of insolvency. Because of this legal uncertainty, the courts issue acquittals.

 

For example, by some criminal cases on the basis of Part 1 of Art. 205 and Art. 193 of the RA Criminal Code was rendered an acquittal and the defendant was acquitted on the basis of the absence of corpus delicti in the case when the latter in his preliminary testimony fully admitted his guilt and confessed.

 

However, the defendant pleaded himself guilty, but motivated that he forwarded the assets to pay off credit liabilities. In the course of the additional investigation, the reasoning was rejected and it was argued that after the repayment of all credit obligations, the director of the LLC could also repay his tax liabilities.

 

During the trial, the defendant refused from his preliminary testimony and pleaded himself not guilty, stating that he did not have sufficient funds to pay off his tax liabilities.

 

In the ruling, the court stated that he did not evade from paying taxes, and that the company faced financial difficulties, in connection with which the defendant could not send money to pay off tax liabilities. With a view to this, he mortgaged the apartments of his relatives, and used the proceeds to pay off loan obligations.

 

With a view to solve the problem of avoiding subjective interpretations in the crime of deliberate bankruptcy, the international practice and criminal legislation of a number of countries were studied. As a result, it was found out that the dispositions of these crimes, as a rule, provide for specific actions in which case a person is subject to criminal liability.

 

Based on the above, the RA Prosecutor General's Office developed a proposal to amend Article 193 of the RA Criminal Code, which was sent to the RA Ministry of Justice.

 

Such regulation will make it possible to make criminal policy in this area more predictable, the administration of justice more effective in relation to the correct assessment of evidence acquired by the preliminary investigation bodies and courts.