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Revenue Service Refutes Information about Frequent Tax Audits

The Revenue Service of Georgia under the Finance Ministry denies reports about frequent tax audits spread by some businessmen.
In particular, the Service states that the test purchases in shopping facilities are carried out  in the normal mode, permanently, as it always has beem and not more frequently than usual.

“The tax authorities can check the same object several times a day. The Monitoring Department, under the authority prescribed by law, does not have any quantitative restrictions to inspect facilities. There are no restrictions of this kind in the tax code as well,”- say in the Revenue Service.

The Department also explains that the monitoring service is entitled to carry out test purchases without judicial authorization, except for cases related to criminal matters.

Apart from that, the test purchases are carried out without prior agreement with commercial facilities’ management.

Retailers, including non-branded objects, talk about more frequent test purchases.

Zurab Lalazashvili, Chairman of Tax and Customs Committee of the Georgian Business Association, told “Commersant” that recently  tax authorities have been checking  more companies than ever before.
According to him, tax inspections must be completed in a timely manner, and moreover, it is necessary to change the format of such checks in order they to take place as soon as possible.

“There are a few cases when the checks are associated with the request of the companies on the deferral of tax payments. In general, the tax authorities need a more systematic approach and a new methodology. This topic is being discussed at the Ministry of Finance,”- the Business Association’s representative says.

Not only  the Business Association  but also individual entrepreneurs, international organizations, in particular, the International Chamber of Commerce, are speaking about  the tightening of tax audits.

The head of government said that despite some politically biased accusations, business in the country is free from any pressure as evidenced by the data of authoritative international ratings.

“Georgia is ranked 22nd in the ranking on the ease of doing business, and we are doing everything to ensure the rule of law in the  country. If any tax audits are carried out, they are planned, and business is inviolable in Georgia today. Tax audits are actively implemented in all countries, including the most developed. For example, in the US tax evasion is considered one of the most serious crimes. The same should happen in Georgia – if someone withholds taxes, he will have to answer before the law, “- said the Prime Minister.

He also adds  that the government intends to do everything necessary to relieve businesses from unnecessary bureaucratic interference.