Georgian Business Ombudsman Assesses 2011 as Encouraging
17 May, 2012
Georgian Business  Ombudsman Assesses 2011 as Encouraging

Taxpayer Ombudsman of Georgia largely known as Business Ombudsman finds the year of 2011 as positive for business thanks to improved communication with the state and liberalized tax law, although he thinks government should slow down amending tax law that causes discomfit to business.

Giorgi Pertaia, Georgian Tax Ombudsman, reported to parliament achievements and challenges of Businessman office after a year of existence of this institute that was introduced by the new tax code put in forces staring January 1st,

Pertaia believes the so called Business Ombudsman institute created as a mediator between the state and business sector justified expectations for business is happy. 882 businessmen appealed for help in 2011, 138 recommendations were worked out for government and 54% of these recommendations were envisaged including as long time lingering problems as amnestying controversial aged tax duties that were not recognized by tax-payers, exemption production losses from tax, deducting fuel costs as expenses etc. 
According to Pertaia, 2011 was a positive to business bacause approach toward business changed radically  and several new business-oriented projects were inactivated at Revenue Service (RS) like alternative audit, enabling business sector to pay taxes based on private audit company findings and not through the controversial RS audit; private tax inspector who supervises cash registering at trade outlets largely eluded before, fines reduced by 31% in 2011 compared to 2010, fine rates also were trimmed and instead of instant imposing of fines now RS gives certain time to tax-offenders to this improve the infringement and so forth. All this increased trust of business toward the RS, Pertaia believes. 
One of the best samples of the  improved communication between the state and business as Pertaia finds it is creation of  mediation council [with the Audit Department of the RS] that discusses tax duties that tax-payers do not agree before the order on imposed tax duty is issued. As a result 18% of excessively imposed taxes were canceled before the act of mediation council was issued. Another good thing to Pertaia was creation of business council with parliament and Council of Auditors set up at the RS that is staffed by representatives of the RS and auditor companies that discusses initiatives of the RS so as to streamline taxation methodology ultimately. 
However Pertaia indicates that it is generally big business involved in this communication thanks to their better organization while small and medium businesses still have less voice.
What still embarrasses the business is frequent changes in the tax law. Although a reformed and new tax code entered into effect in January of 2011 there were up to 300 amendments made to almost all paragraphs of the code during entire 2011 while some paragraphs were changed several times like for 8, 10 and even 12-fold.
Although these changes were requested by business such frequent amendments still embarrass entrepreneurs for they are permanently searching whether or not something has changed in the tax law that creates setback in planning and management affecting business climate ultimately. Therefore Pertaia recommends government to implement changes only once per quarter or twice per year.
Another key challenge is regulating important issues through secondary legislation instead of building them in the framework law.
“One of the most conspicuous samples of this is regulating customs procedures definition through law enactments instead of the tax code,” Pertaia said and recommended to solve this problem.
He pledges to go ahead with supporting better communication between the state and business this year, warns businessmen to be careful to enter the enticing but risky Russian market and implement their exports there through international trade terms only to avoid losses again as some suffered when the market closed in 2006.
Davit Narmania, Executive Director of the Caucasian Institute for Economic and Social Researches, thinks introduction of the Business Ombudsman met expectations on the side of tax law improvement but he would like him to have stronger power in settling tax disputes where Tax Ombudsman may only make recommendations at the moment.   
Irakli Lekvinadze, an economic analyst, thinks Georgian Tax Ombudsman is a functionless body in fact for it did not react on the sorest problems like large scale infringements of property rights throughout country, governmental initiatives affecting overall business climate as it extended access to confidential business information to banks, accountants, and auditors etc, also small and medium business is not involved in legislative procedures.
“Tax Ombudsman cannot be effective for he has to oppose the one who assigns him in fact [Prime Minister assigned Tax Ombudsman to post], he should be chosen by business itself, then it can be effective,” he said.


Other Stories
The most wanted fruits from Georgia
The fruit exportation has decreased in Georgia. According to Geostat (National Statistics Office of Georgia), this year, up until May Georgia exported 25 939 300 USD worth of fruit – 6 771 300 USD less than in 2018.
Investment Plan for Europe – Additional EUR 800 million for SMEs as EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and ProCredit Group are providing an additional EUR 800 million to innovative small and medium-sized companies (SMEs),
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
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
July 2019
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 31