Company Search in a Financial Investigation

1. Fraud, i.e. taking property of another person or obtaining of title to the property by deceit for its unlawful appropriation, –

shall be punished by a fine or community service from 170 to 200 hours, or by corrective labour or house arrest for a term of one to two years, or by imprisonment for a term of two to four years.

2. The same act:

a) committed by more than one person with a preliminary agreement;

b) causing substantial damage, –

shall be punished by a fine or by imprisonment for a term of four to seven years.

3. The same act committed:

a) using the official position;

b) in large quantities;

c) repeatedly, –

shall be punished by a fine or by imprisonment for a term of six to nine years.

4. The same act committed:

a) by an organised group;

b) by a person who has two or more previous convictions for unlawful appropriation or extortion of another person’s property, –

shall be punished by imprisonment for a term of seven to ten years.

1. Unlawful appropriation or embezzlement of another person’s property or property rights provided this property or property rights were lawfully held or managed by the misappropriator or embezzler, –

shall be punished by a fine or house arrest for a term of six months to two years, or by imprisonment for a term of three to five years.

2. The same act:

a) with a preliminary agreement by a group;

b) repeatedly;

c) that has resulted in considerable damage;

d) using the official position, –

shall be punished by a fine or imprisonment for a term of four to seven years, with deprivation of the right to hold an office or to carry out activities for up to three years.

3. The act provided for by paragraph 1 or 2 of this article which has been committed:

a) by an organised group;

b) in large quantities;

c) by a person who has two or more convictions for unlawful appropriation or extortion of another person’s property, –

shall be punished by imprisonment for a term of seven to eleven years, with deprivation of the right to hold an office or to carry out activities for up to three years.

1. Legalisation of illegal income, i.e. giving legal form to illicit and/or undocumented property (use, purchase, possession, conversion, transfer or other actions in connection with property) in order to conceal its illegal and/or undocumented origin or to assist another person in evading liability, as well as concealment or disguising of its genuine nature, source of origin, location, dislocation, movement, its title and/or of other rights related to it, –

shall be punished by a fine or by imprisonment for a term of three to six years.

2. The same act:

a) committed jointly by more than one person;

b) committed repeatedly;

c) which was accompanied by receipt of large income, –

shall be punished by imprisonment for a term of six to nine years.

3. The same act:

a) committed by an organised group;

b) committed using one’s official position;

c) accompanied by receipt of particularly large income;

d) committed in order to perform an act related to a political issue concerning Georgia, –

shall be punished by imprisonment for a term of nine to twelve years.

Note:

1. For the purposes of this article, property, as well as income, or shares (interest) gained from this property shall be considered illicit if acquired unlawfully by the person, the person’s family member, close relative or related person.

2. For the purposes of this article, property, as well as income, or shares (interest) gained from this property shall be considered undocumented if the person, the person’s family member, close relative or related person does not have the documents that confirm that it has been acquired by legal means or if it has been obtained by the monetary resources gained from the alienation of the illicit property.

3. Under this article, large income shall mean income from GEL 30 000 to GEL 50 000, and particularly large income shall mean income exceeding GEL 50 000.

4. For the act provided for by this article, a legal person shall be punished by liquidation or by deprivation of the right to carry out activities and a fine.

5. For the purposes of this article, any such activity conducted or to be conducted with the aim of exercising any influence over the Government of Georgia, state institutions or any part of the society, which intends for the development, pursuing or changing of the internal or foreign policy of Georgia, and any such activity stemming from the political or public interests, approaches or relations of a foreign Government or foreign political party shall be considered an act related to a political issue concerning Georgia.

1. Intentional evasion of taxes in large amount, –

shall be punished by a fine or imprisonment for a term of three to five years.

2. The same act committed:

a) repeatedly;

b) in particularly large quantities;

c) by a group with preliminary agreement, –

shall be punished by imprisonment for a term of five to eight years.

3. Alienation of property or its part to evade taxes, –

shall be punished by a fine or imprisonment for a term of two to three years.

Note:

1. Under this article, large amount shall mean the payable amount exceeding GEL 100 000, and particularly large amount shall mean the payable amount exceeding GEL 150 000.

2. A person shall not incur criminal liability under this article if the imposed principal payable amount has been paid, deferred or adjusted within 45 working days after receipt of a tax notice in response to a tax audit findings, or if the obligation of its payment has been suspended based on the law.