General Rules of Tax Control
Under Article 255 of the Tax Code, tax control over a person’s activity is exercised only by the tax authority — other supervisory and law-enforcement bodies are forbidden from doing so. The control procedures must not, within reasonable limits, disrupt the usual rhythm of the person’s activity or halt it. The forms of tax control are current control and a tax inspection. Control proceeds without a judge’s warrant, except in cases directly provided for by the Code; without a warrant it is prohibited to re-examine an already examined issue for the same period, except on issues for which the person submits an amended declaration for the examined period. Where necessary, a specialist or expert may be invited, and an inspection initiated at the taxpayer’s request proceeds without a warrant.
Cameral and Field Inspections
Under Article 262, a tax inspection may be cameral or field. A cameral inspection is conducted on the basis of an order of an authorized officer of the tax authority, on a specific issue, without visiting the place of activity — on the basis of information held by the authority, the taxpayer’s explanations and accounting documents; where errors are found, an inspection act is drawn up. A field inspection is conducted on the basis of a decision of an authorized officer: the taxpayer must be given written or electronic notice at least 10 working days before it begins, and the inspection must start no later than 30 days after delivery of the notice — otherwise the notice is deemed invalid. A field inspection may be full or thematic and may include current-control procedures.
Deadlines and the Taxpayer’s Duties
A field inspection may last no more than 3 months and, where necessary and with the consent of the head of the Revenue Service, may be extended by up to 2 additional months. The taxpayer must provide the inspectors with the same working conditions as ordinarily exist for it. An authorized officer may request a certified copy of accounting documents and, if the request is not fulfilled, remove the original, which is returned to the taxpayer upon completion of the inspection; a removal protocol is drawn up. Where continuation is impossible due to force majeure, the inspection may be suspended and resumes as soon as the circumstance is eliminated; in a multi-stage inspection, an interim act is drawn up after each stage. Preparation therefore means an orderly document file and ready copies.
Urgent Field Inspection
Under Article 265, an urgent field inspection is conducted without written notice, with the permission of a court, where the previous inspection revealed significant violations, where reliable information casts doubt on the origin of financial means, where there is reliable information about undocumented increases in property, where the declarations do not confirm the reality of taxable objects, where no declaration has been submitted, or where there is information that the person plans to evade tax obligations by leaving the country, transferring assets or destroying documents. The authority must apply to the court within 48 hours of the start; where there is a risk of asset transfer, it may spread a tax pledge or mortgage over the property within the value of those assets. If the court does not grant permission, the pledge is terminated and any lock on documents must be lifted. Starting the inspection before permission is prohibited.
A Practical Preparation Plan
Preparation for an inspection is the working-out of three directions. The first is the notice calendar: the notice of a field inspection has deadlines, and recording them allows the person to verify the lawfulness of the notice in time and to demand a fresh notice where the period has been exceeded. The second is documentary readiness: preparing copies in advance reduces the risk of removal of originals and moves the inspection into a calmer regime. The third is procedural literacy: knowing the forms of current control and inspection, the prohibition of re-examination and the rules of the urgent inspection gives the person an organizational advantage — each step is read in advance, not after the fact. Read together, these three directions turn preparation into a systematic process rather than an ad hoc reaction, and they also give the file a defensible structure: when every notice, request and protocol has its place in the register, the narrative of the inspection can be reconstructed at any stage, which matters both for explanations during the inspection and for any subsequent dispute over its acts.
Frequently Asked Questions
Below we answer the questions most frequently raised about tax inspections.
How much advance notice is given for a field inspection?
At least 10 working days before it begins; the inspection must start no later than 30 days after delivery of the notice, otherwise the notice lapses.
How long may a field inspection last?
No more than 3 months, extendable by up to 2 additional months with the consent of the head of the Revenue Service.
When is an urgent inspection conducted?
Without written notice, with the permission of a court, where statutory grounds of suspicion exist; the court must be applied to within 48 hours.
Can an issue be re-examined?
Without a judge’s warrant it is prohibited to re-examine an already examined issue for the same period, except where an amended declaration is submitted.
How We Help on Legal.ge
On Legal.ge we help taxpayers prepare for inspections: we build a document register, conduct a preliminary analysis of declarations and draft explanations. Contact our team on any tax inspection issue.