Tax Evasion — the Legal Anatomy of the Charge and the Defense
The relevant norm of the Criminal Code singles out evasion of taxes as a distinct corpus delicti: deliberate evasion of taxes in a large amount entails criminal liability. The charge rests on two elements — the amount and intent — and it is at precisely these two points that the defense strategy unfolds. This page explains the corpus delicti in detail, the tiers of sanctions and the lawful route of release from liability.
Tax evasion cases almost always begin with a tax inspection and move into the criminal phase only after administrative proceedings. For the defense, knowledge of the corpus delicti and correct management of the deadlines are therefore equally decisive.
What Constitutes Tax Evasion
The basic composition reads as follows: deliberate evasion of taxes in a large amount is punished by a fine or imprisonment for a term of three to five years. The note to the law defines the amounts precisely: the amount is considered large when the sum of tax payable exceeds one hundred thousand lari, and especially large when the sum exceeds one hundred and fifty thousand lari. Intent is a separate element: the prosecution must prove that the person acted with the deliberate aim of evasion, and not merely from inability to pay or an accounting error.
A separate composition is the disposal of property or a part of it for the purpose of evading tax — this act is punished by a fine or imprisonment for a term of two to three years. It means that deliberate transfer and accounting of assets for the purpose of evasion is singled out as an offense of its own, independent of the basic formulation.
Aggravating Signs and the Tiers of Sanctions
The same act moves to a heavier tier when committed: more than once; in an especially large amount; or by a group with prior conspiracy. In such a case the punishment is imprisonment for a term of five to eight years. The tiers of sanctions must be presented separately and never compressed: a fine or imprisonment of three to five years for the basic composition; five to eight years with aggravating signs; a fine or imprisonment of two to three years for the disposal of property for the purpose of evasion.
In the prism of the defense each aggravating sign is a separate contested point: repetition requires prior decisions to be in legal force; the especially large amount requires the arithmetic over one hundred and fifty thousand lari to be correct; and conspiracy by a group requires proof of coordinated action by several persons. The prosecution's evidence on each of these elements must be checked with forensic precision.
Release from Liability — the Lawful Way Out
The law defines a mechanism that precludes criminal liability altogether: a person does not bear this liability if, within forty-five working days from receipt of the tax demand on the results of the tax inspection, the basic amount charged for payment is paid, deferred or corrected, or the obligation to pay it is suspended on a ground of law. This means that acting correctly and in time after receiving the demand — payment, deferral or correction — removes the criminal risk, which is why managing this deadline is the defense's first task.
The element of intent is the most sensitive point of the charge: the case turns on whether the person had the deliberate aim of evading payment, or whether we are dealing with an accounting error, a wish to defer payment or the boundaries of lawful optimization. The defense proves precisely this distinction with a documentary chronology — declarations, corrections, correspondence and payment history.
Frequently Asked Questions
What amount is considered large?
The amount is large when the tax payable exceeds one hundred thousand lari; it is especially large when the sum exceeds one hundred and fifty thousand lari.
What penalty does the accused face?
For the basic composition — a fine or imprisonment of three to five years; when committed more than once, in an especially large amount, or by a group with prior conspiracy — five to eight years; for disposing of property to evade tax — a fine or imprisonment of two to three years.
Is release from liability possible?
Yes: if within forty-five working days of receiving the tax demand the basic amount is paid, deferred or corrected, or payment is suspended on a ground of law, no criminal liability attaches.
Where does the defense look for weak points?
In the unproven intent, in the correctness of the arithmetic, in the completeness of the aggravating elements and in the procedural deadlines — including the running of the forty-five working days after the demand.
How We Help on Legal.ge
The Legal.ge team begins the defense against a tax evasion charge from the very first stage: we assess the elements of the charge, reconstruct the chronology of the accounts, manage the deadlines following the tax demand and prepare the position for both the administrative and the judicial phase. Contact us on Legal.ge — your defense will be built on the exact elements of the law.