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Georgian Business under Pressure from the Tax Audit System – Experts Offer a Way Out

An economic expert Levan Kalandadze and a lawyer Imeda Dvalidze urge the government to update the tax audit system  and reduce the terms.

Imeda Dvalidze does not rule out that after  consultations with the legislative body and other non-governmental organizations, the initiative will be  introduced to the Prime Minister and the idea of changing the tax audit  system  and reducing the terms will be  turned into a legislative initiative.
In Imeda Dvalidze’s opinion,  this problem concerns  all areas of the business.

Dvalidze says that, as a lawyer, he has a lot of cases which are  considered to be a problem for the duration of the terms of a tax audit. According to him, businessmen  perceive this  as interference in their business.

According to the Code, a  tax dispute should be resolved in 2 months, however, often a legal dispute lasts for one  year. The existing resolution  in the law fails to be fulfilled because of the lack of human resources. In addition, the terms are not  followed  by the Ministry of Finance.

“When after the tax inspection, the protocol is sued in the Court, the Ministry of Finance doesn’t follow  the  terms  due to the  lack of resources,” – notes  Dvalidze.

The Deputy Chairman of the Finance and Budget Committee of the Parliament of Georgia Nodar Ebanoidze  intends to initiate review of changes in legislation in matters relating to the tax audit terms  and litigation.

The other day, a representative of the Business Association Zurab Lalazashvili said that tax audits in companies had increased recently and in general the approach to this issue needs to be changed.