Falsifying business records, often known as "cooking the books" or financial statement fraud, is a serious crime fought by both tax authorities and the Prosecutor's Office. In Georgia, this act can be qualified under several articles: Article 210 of the Criminal Code (Making, selling, or using forged credit or payment cards/documents) and Article 362 (Forgery of documents). The crime involves entering false data into company ledgers, invoices, balance sheets, and tax declarations. The goal is often tax evasion, deceiving investors, or illegally obtaining credit. Charges can be brought against both the company director and the chief accountant. The defense strategy requires a combination of financial audit and legal expertise to determine whether the inaccuracy was intentional fraud or a simple mechanical error.
What does Falsifying Business Records Defense cover?
Lawyers specializing in financial crimes offer:
- Forensic Accounting: Engaging independent auditors to study disputed records and reconstruct the real financial picture.
- Document expertise: Verifying the authenticity of suspicious documents (invoices, contracts).
- Separation of liability: Proving that the director was not informed about the manipulations committed by the accountant (or vice versa).
- Tax dispute litigation: Parallel dispute with the Revenue Service to cancel accrued penalties.
- Plea agreement: Negotiating with the state for mitigation of criminal liability in exchange for compensation for damages.
Common Situations and Scenarios
Charges are often related to:
- Fictitious invoices: Recording the purchase of non-existent services or goods to artificially increase expenses.
- Hiding income: Not reflecting income received in cash in the accounting records.
- Manipulation of asset value: Inflating the value of assets in the balance sheet to obtain a bank loan.
- Payroll fraud: Paying employees in envelopes and showing a low amount in official payrolls.
Georgian Legislation and Legal Framework
This field is regulated by Articles 210, 362, and 218 of the Criminal Code. The Law "On Accounting, Reporting and Auditing" is also important. Criminal liability arises when forgery results in substantial damage or is committed for mercenary purposes. The lawyer's role is to prove that the entry, even if incorrect, did not serve a criminal purpose (e.g., fraud).
Service Delivery Process
The process begins with the seizure and analysis of financial documentation. The lawyer and auditor jointly check how much the "black" and "white" accounting correspond to each other. If a violation is evident, the defense works on compensating for damages and minimizing the sentence.
Why choose a specialist on Legal.ge?
Falsifying business records cases require a lawyer who is well-versed in financial accounting. On Legal.ge, you will find specialists working on economic crimes who can protect your business and freedom. Find qualified help on our platform.
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