The Essence of Tax Reporting Requirements
Tax reporting interweaves two directions: the declarations you submit and the approaches of the tax authority — tax demands, requests for information and the procedure for refunding overpaid amounts. The Tax Code of Georgia gives these relations clear forms and deadlines, and knowing them protects both your time and your money. This page explains how these mechanisms operate and in which cases you may claim a refund of an overpaid amount.
The Tax Demand and Its Grounds
A tax demand is an individual administrative-legal act of the tax authority, the fulfilment of which is mandatory. The authority must present a tax demand to a person where one of the following grounds exists: an assessment of a tax whose computation is the authority's duty; a decision of the authority on the assessment of a tax or the imposition of a sanction, or a record of a tax offence; a decision on directing recovery against a third person; or a decision of a customs authority on the assessment of import duties or a customs sanction. A tax demand is considered fulfilled from the moment of payment of the amount indicated in it. The procedure for issuing the demand is determined in detail by the Minister of Finance of Georgia, so the form and content of the demand always fit the framework established by law — and the taxpayer may verify whether the act is properly composed and matches the indicated grounds.
The Refund of Overpaid Amounts
Where the amount of taxes or sanctions paid exceeds the amount charged, the tax authority, on the request of the taxpayer, returns the overpaid amount no later than 1 month from the submission of the request. Where the paid amount exceeds recognized tax debt, the excess is directed to cover subsequently charged and recognized debts. A special case is an amount incorrectly written off by an incasso order: it is returned to the taxpayer no later than 15 days from the application. In individual cases, where declarations are filed electronically, an automatic refund of the overpaid amount is also possible; in addition, by decision of the head of the Revenue Service, an overpaid amount may in defined cases be returned even without a request — though relying on that assumption instead of filing your own request is unwise, since the terms and conditions are determined separately. A taxpayer's request is considered fulfilled from the moment of payment of the requested amount; if the authority considers the request groundless, it must present a reasoned objection within 20 days of its receipt, and the person may appeal that objection.
Requests for Information and Analytical Procedures
The tax authority may require of a person the submission of accounting documentation or information related to taxation — including information requested by the competent authority of another state under an international treaty — as well as a list of property. The person must submit the requested information to the authority within the indicated deadline, correctly and completely; where property has been seized, the list is corrected within no later than 7 working days of acquiring new property. Information constituting bank secrecy is requested by the authority on the basis of a court decision, with certain exceptions. The authority is also authorized to conduct general analytical procedures — the collection and analysis of information about a person and, on that basis, the planning of administration measures — which is why your own data should always be in order. Analytical procedures mean the collection and analysis of information about a person and, on that basis, the planning and optimization of tax administration measures, including the gathering of information on the object of taxation and the study of the causes of tax arrears and overpayment.
Frequently Asked Questions
Below are answers to the questions raised most often about tax demands.
How quickly is an overpaid amount returned?
No later than 1 month from the request; an amount incorrectly written off by an incasso order — within 15 days of the application.
What happens if the authority considers a request groundless?
Within 20 days the taxpayer receives a reasoned objection, which may be appealed.
What information may the authority request?
Accounting documentation, taxation-related information and a list of property; bank secrecy — only by court decision, with certain exceptions.
The grounds for presenting a tax demand are exhaustively listed: assessment of a tax, a decision on assessment and/or a sanction or a record of a tax offence, a decision on turning to execution against a third person, and a customs organ’s decision on charging the importer or applying a customs sanction. An overpaid amount may also be applied to cover recognized tax debt. The procedure for issuing demands is determined by an order of the Minister of Finance.
Below are frequent questions about tax demands.
Within what period is an overpaid amount refunded?
Within no later than 1 month of the submission of the demand; an amount wrongly debited under an enforcement order is returned within no later than 15 days of the application; for taxpayers using electronic declaration an automatic refund is possible.
How We Help on Legal.ge
The specialists of Legal.ge assist in working with tax demands: we analyse the grounds of a demand, prepare a request for the refund of overpaid amounts, plan the submission of information to the authority and appeal groundless objections. Contact us — an informed step within each deadline gives the taxpayer real control.