The Essence of Tax Compliance Advisory
Tax compliance means the complete fulfilment of the obligations established by tax legislation — timely filing of declarations, correct computation of taxes and proper conduct of documents. The Tax Code of Georgia at the same time grants the taxpayer significant rights and imposes clear obligations, and knowing both directions prevents costs and disputed situations. This page explains the rights and obligations of the taxpayer and two special instruments — preliminary and public decisions — which determine the tax treatment of an operation in advance.
The Rights of the Taxpayer
The taxpayer has the right, in the manner established by law, to examine the information existing about him or her at the tax authority, to present his or her interests personally or through a representative, to use tax allowances and to recover or credit against future liabilities an amount of tax or sanction paid in excess. During tax control the taxpayer may request information about the ground for the control, submit a relevant explanation to the authority, attend a field tax audit conducted with respect to him or her and receive an original or certified copy of any related decision. The taxpayer may appeal an act or decision of the tax authority, decline to comply with an act or demand contrary to law and claim compensation for damage caused by an unlawful decision. The protection of the rights and lawful interests of the taxpayer is guaranteed through administrative proceedings and in court.
The Obligations of the Taxpayer
The taxpayer is obliged to fulfil tax obligations in the manner set by legislation, to register with the relevant tax authority, to submit declarations, reports and accounting documents and, during an audit, to present the documents needed for the computation and payment of taxes. A document necessary for determining the object of taxation must be kept for 3 years, counted from the end of the calendar year of the relevant tax period. A separate requirement concerns foreign bank accounts: a Georgian enterprise, organization and entrepreneur individual must notify the tax authority about the opening of a bank account outside Georgia within 5 working days of its opening — except term deposit accounts. In retail trade, a copy of the taxpayer certificate and price indicators must be displayed in a visible place for consumers.