The Two-Stage System of Tax Disputes
A tax dispute may be examined in the system of the Ministry of Finance of Georgia and in court. Within the ministry system the dispute-examining organs are the Revenue Service and the Disputes Council at the Ministry of Finance, and the dispute is two-stage: it begins with the submission of a complaint to the Revenue Service. In the case of a preliminary decision the person applies directly to the Disputes Council. At the same time, at any stage of the dispute the claimant may apply to a court — a guarantee that subjects the administrative system to judicial control, while proceedings before the court are governed by administrative procedural legislation.
The Procedural Requirements of the Complaint
The dispute-examining organ does not accept a complaint into proceedings if it fails the procedural requirements: the claimant's identification or personal number and contact details must be indicated; the substance of the demand must be discernible from the complaint; a copy of the challenged decision or of the document connected with its issuance must be attached; the pages must be numbered; the complaint must be legible, in Georgian and signed; where submitted by a representative, a document confirming authority is attached. On a defect the claimant is notified in writing and given no less than 5 days to cure it, and on a reasoned request this term may be extended. In practice this formal filter decides the fate of the dispute: a timely cured complaint enters into examination, an overdue one is left unexamined.
A defect does not, however, automatically end the matter: the dispute-examining organ is empowered to accept the complaint into proceedings despite the defect where the defect does not substantially hinder the examination of the complaint — an instrument of protection against excessive formalism whose application rests with the organ's own assessment.
The Decision and Appeal
The dispute-examining organ may satisfy the complaint, satisfy it in part, refuse it, leave it unexamined, or adopt an interim decision and suspend the examination. Proportionally to the annulled part of the tax organ's decision, the acts of the same organ that grounded the challenged decision are annulled as well — an effect that enhances the real value of the dispute. The appeal terms are strict: an unfavourable decision of the Revenue Service may be appealed within 20 days of its delivery to the Disputes Council or the court; the Council's decision — likewise within 20 days to the court. The burden of proving the violation of the term lies on the tax organ, and failure to continue within the established term is deemed acknowledgment of the disputed debt — two rules that strengthen the claimant's position.
Three further details complete this stage. The decision is, as a rule, sent to the parties electronically. Where the ground of satisfying the complaint is an entry in the tax legislation that gives grounds for varying interpretations, the Council's decision also records a recommendation to introduce a change in the normative act. And one more guarantee of observance of the term: submission of the complaint within the term established for appeal to the tax organ or any other state organ counts as observance of the appeal term.
The Strategic Choice in a Dispute
In a tax dispute the claimant chooses between two routes: the administrative — the Revenue Service and the Disputes Council — and the court. The administrative route is cheaper and faster, yet its decision does not exclude judicial control: the Council's decision too is appealed to court within 20 days. Two strategic considerations apply: first, the documentary solidity of the subject of the dispute, since the administrative organ applies the formal filter strictly; second, the calendar of terms, since missing the 20-day terms counts as acknowledgment of the debt. Preparing a dispute proceeds around precisely these two axes.
The Function and Significance of the Disputes Council
The Disputes Council is the tax-dispute examining organ at the Ministry of Finance; its composition is determined by the government, and its regulations fix the procedure for examining complaints and communicating with claimants. The Council's apparatus prepares complaints, supplies claimants with information connected with the proceedings and formalizes decisions; the apparatus may also hold preparatory meetings with the parties to clarify circumstances. This infrastructure shapes the dispute into a second stage: the complaint awaits full-fledged examination in the Council, and the Council's decision is not the last word — judicial control is preserved.
Frequently Asked Questions
Below we answer the questions most frequently asked on this subject.
Where does a tax dispute begin?
With a complaint to the Revenue Service; on a preliminary decision — directly to the Disputes Council.
How much time is there to cure a defect?
No less than 5 days, extendable on a reasoned request.
What is the appeal term?
20 days from delivery — both to the Council and to the court.
May one apply directly to court?
Yes — at any stage of the dispute.
May a defective complaint be accepted?
Yes — where the defect does not substantially hinder the examination of the complaint, the organ is empowered to accept it into proceedings.
How We Help on Legal.ge
In a tax dispute formal details are decisive. On Legal.ge you can consult a tax lawyer who will prepare the complaint and defend your interests at every stage. Submit a request on the site and receive qualified assistance.