According to the government’s decree, the debts of 145 thousand individuals totaling GEL 590 million will be written off — the initiative was voiced by Irakli Kobakhidze at a government meeting.
Lawyer, civil law specialist and business consultant Gvantsa Zhorzholiani says that citizens apply to the relevant authorities with a request to write off their debts. In air of the radio station “Commersant” Zhorzholiani expresses comfort over the government's steps noting that 145 thousand people are given a possibility to continue their economic activity, but believes it is dangerous as the process could push “honest taxpayers” to failure to fulfill their obligations.
"The tax amnesty applies to any individual and legal entity registered as an individual entrepreneur (both individual entrepreneur, small entrepreneur and microentrepreneur). Accordingly, all natural persons, including individual entrepreneurs, will have their recognized tax debts incurred and unpaid before January 1, 2021, written off in full.
The period of occurrence of some rights or obligations to movable or cash assets has a term of 3 years, on immovable property - 5 years. As tax debt represents cash and cash flow, it operates over the long-term. The state found a good solution by declaring a tax amnesty after more than three years.
As a lawyer, I can say that tax amnesty is a very bad and encouraging decision towards honest taxpayers. It would also be good to think about rewarding "good taxpayers" and providing them with some benefits.
This tax amnesty is large-scale and covers 145 thousand individuals and legal entities. "In fact, the state forgives GEL 590 million in tax debts," Gvantsa Zhorzholiani stresses.
