If Businessmen Consider Fines as Illegal, they should not Recognize Tax Arrears, Says Revenues Office Former Chief

Mindia Gadaev, the former chairman of the Georgian Finance Ministry Revenues Office, believes that the Georgia Government’s initiative on conclusion of tax agreements with the indebted companies is an expedient move.

The conclusion of tax agreements with the business sector amid the economic crisis is of crucial importance, but this practice should not continue on permanent basis, Gadaev told GBC.

“Companies are to make decisions themselves whether they find worth to recognize tax arrears. If they believe that imposed fines are unjust, they should not recognize such tax liabilities, because this will spur the Tax Inspection to bad practices”, Gadaev noted.

No one is innocent, he says. Therefore, the recognition of any dispute will bring negative results to the Revenues Office, first of all, Gadaev noted.

“They often talk about the necessity of adherence to strict administering regulations. This is a proper approach (within norm) as this is the commitments of the Authorities, but the business sector should also have valuable perception of its liabilities”, Gadaev says.

The bill on conclusion of tax agreements was enacted on December 15. The regulations will run for only a year, the Government says.

Total of 100 applications have been already submitted to the Revenues Office for conclusion of tax agreements.