Tax ombudsman is for stable and fair tax code
03 February, 2011
Tax ombudsman is for stable and fair tax code

The much trumpeted tax ombudsman’s institution, envisaged by the new tax code, at last comes to force. According to law, Prime Minister of Georgia is entitled to appoint a candidate. Oppositional political parties and economic analysts disapprove this method of appointment. They fear it can make tax ombudsman less impartial and recommend replacing Premier by parliament.
Girogi Pertaia, a former economic aide of Nika Gilauri, Prime Minister of Georgia, will be the first ever Georgian tax ombudsman introduced by new tax

code [that entered into effect starting January 1st of 2011].   Three candidates were presented on the post of tax ombudsman past week. Gilauri having consulting with Davit Bakradze, Chairperson of Parliament, announced on January 28 that Pertaia is the best candidate supported by the business community itself.
Pertaia was appointed on the position of Premier’s advisor in charge of business affairs past spring and already then was supposed to be eligible candidate for the tax ombudsman. Pertaia, a MBA graduate of Western Illinois University, was a customs expert at American Chamber of Commerce in Georgia, and was closely involved with the elaboration of customs and tax legislation.
According to the tax code, tax ombudsman is responsible for protection of  tax-payers’ rights throughout the entire territory of Georgia. He is authorized to require an explanation from tax administration on complaints and applications submitted by taxpayers. If tax ombudsman discloses a fact of violation taxpayer’s right he is mandated to give due recommendations to due body how to retrieve the violation. He can keep certain information confidential and is accountable to the Finance and Budget Committee of Parliament where he presents a yearly report. 
Prime Minister appoints ombudsman through the agreement with Chairperson of the Parliament. And rights and responsibilities of tax ombudsman will be defined by governmental regulations. Oppositionist political parties hailed government to change the rule of appointment tax ombudsman and gave authority to parliament for that. Leaders of the New Rightists political party believe that the active rule of appointment does not insure impartiality and independence of tax ombudsman.
“It’s a fact that business suffers from governmental crackdown first and foremost and has conflict with government. And this here rule that mandates Premier to appoint tax ombudsman personally in fact cannot insure his independence from government,” Davit Saganelidze, one of the leaders of the New Rightists, said on January 28, 2011.
Another fact that makes economic analysts skeptical is that tax ombudsman unlike ordinary Ombudsman of Human Rights is not selected under defined office-term and it depends on government when stop his office-term [like a minister or any other appointed official]. This fact provokes an idea that he may face a temptation to take into account governmental opinion that poses perils to the status of an “unbiased arbitrary” tax ombudsman is supposed to be.
Nevertheless economic analysts approve introduction of tax ombudsman’s institution as they believe that finance ministry actually violates taxpayers’ rights  on every step and neither the Dispute Council operating at the ministry of finances nor the court act as effective tools to protect taxpayers from governmental crackdown. On the other hand they advocate parliament rather than Premier to be responsible for appointment of tax ombudsman.
“On the other hand the fact that tax ombudsman is appointed by Primer can be a right move as it means that the Primer’s office will be involved with the problems of business as much as possible and solve problems quicker,” Levan Kalandadze, Executive Director of Association of Small and Medium Sized Enterprises of Georgia, said.”It is not an ideal model of course but let’s see how it will work.”
Pertaia meantime plans to address to elaboration of tax legislation first and foremost so as to eradicate the biggest affliction of business: the problem of double-interpretation of tax legislation leading to confusion and violation of taxpayers’ right. Once the tax code becomes simpler and understandable to everyone it will make tax administration simpler as well, Pertaia believes. 
“On the other hand, I want to make tax legislation stable at last. To this end I plan to work hard for 6 months for example [starting now on] and streamline all controversial paragraphs [that confuses business] so as it would not change for at least next two years. It will make business feel stable and protected and fairly treated,” Pertaia told Georgian Journal.

Other Stories
Inovative and reliable online shop in Georgia -
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30