Tax Fraud Defense in Georgia | Legal.ge

TaxFraudDefense

What is the difference between tax evasion and tax fraud?

Evasion is typically the failure to report income, while fraud involves active deceit, such as creating fake invoices or forging documents, which carries harsher penalties.

Can I blame my accountant?

You can argue lack of knowledge, but as a director, you are ultimately responsible. You must prove the accountant acted independently and deceived you.

Is jail time mandatory for tax fraud?

Not always. If the damage is repaid, Georgian courts often accept plea bargains resulting in fines or probation instead of imprisonment.

Forgery of tax documents and related fraud goes beyond ordinary tax evasion and represents an "active" crime. This involves not simply non-payment of tax, but the production and use of fake documents (invoices, waybills, tax invoices) to deceive the state budget. In Georgia, this act is punished by a combination of Articles 210 (Making, selling or using forged credit or payment cards/documents), 362 (Forgery of documents), and 218 (Evasion of tax) of the Criminal Code. Investigative bodies treat so-called "VAT carousels" and the use of fictitious companies to obtain credits with particular strictness. The accused face heavy financial penalties and imprisonment. The defense strategy requires deep tax and legal expertise to determine whether there was a technical error or intentional forgery.

What does Tax Fraud Defense service cover?

Lawyers specializing in tax crimes offer:

Expertise of accounting documentation: Studying disputed invoices and waybills, substantiating their authenticity and economic substance.
Representation in the Investigation Service of the Ministry of Finance: Protecting client rights during interrogation and investigative actions.
Verification of counterparties: Collecting evidence that the client acted in good faith trusting the partner company and did not know about its fictitious nature.
Tax dispute: Conducting an administrative dispute parallel to the criminal case to cancel the tax accrual.
Plea agreement: Negotiating with the state for mitigation of criminal liability in exchange for compensation for damages.

Common Situations and Scenarios

Charges of tax fraud are often related to the following schemes:

Fictitious operations: Recording the purchase of services or goods from a non-existent company to increase expenses.
VAT credit fraud: Using fake tax invoices to illegally claim VAT refunds from the budget or reduce liability.
Falsification of waybills: Incorrectly stating the quantity or price of goods for customs or tax purposes.
"Black cash register": Hiding income and maintaining parallel, unofficial accounting.

Georgian Legislation and Legal Framework

The main articles are 210 (Forged payment documents), 362 (Forgery of documents), and 218 (Tax evasion) of the Criminal Code. The combination of these articles creates an aggravating circumstance. Particular attention is paid to organized group crime. The Tax Code also provides for strict administrative fines. The defense often appeals to the fact that the client was misled by an accountant or counterparty and did not have the intent to forge the document.

Service Delivery Process

The process begins with an audit. The lawyer and auditor jointly study the company's documentation. If a forged document is discovered, it is determined who created it. Often the strategy is based on shifting the blame to a technical performer or negligence to avoid the qualification of fraud. Compensation for damages is a priority for the budget, so paying the amount often removes the threat of prison.

Why choose a specialist on Legal.ge?

Tax fraud cases require synergy between tax law and criminal law. Lawyers represented on Legal.ge often work in tandem with auditors, which ensures comprehensive defense. An error in documentation can cost you dearly, so trust experts who know the principles of the system's operation. Protect your business with Legal.ge.