Institute for Development of Freedom of Information (IDFI) published research about offshore companies in Georgia. The activities of legal entities registered at offshore zones in Georgia is permitted and it does not contradict the legislation.
“Nevertheless, the activities of such companies carry risks. As it turns out, there are number of cases when the companies owners of state property and a variety of strategic objects such as Energy, mining, etc) are registered at offshore zones and the information on them cannot be obtained”, – explained in IDFI.
Offshore companies can be used by the representatives of the state in money laundering, corruption or illegal pressure on business entities.
The Panama documents confirmed that dishonest business groups use offshore companies in order to hide their income and avoid tax payments. Thus, the state budget damages significantly”, – said in the research of IDFI.
According to the Statistics Office data, millions of dollars investments were lifted from offshore zones in Georgia.
The highest amount received from offshore companies recorded in 2007, 371 109 900 USD, however in the years of 2013-2015 the investments outflow occurred. As a result, this fact led to a negative balance.
In 2013-2015 years, the biggest amount of investment flow happened from the British Virgin Islands, then the second place keeps Cyprus, and at the third place stands panama.
IDFI asks the Prosecutor’s Office of Georgia to investigate illegal facts arisen from the companies registered in offshore zones.
In addition, it asks to Georgian Parliament – to rely on the practice of the European Parliament and to create special commission that will examine the impact of the companies registered in offshore zones and the outcomes of the economic and political life.