Tax Evasion Defence in Georgia

Keep the tax dispute and criminal case analytically separate

The Revenue Service assessment, objection or payment process determines tax questions. Article 218 creates a criminal offence for intentional evasion in a large amount. Investigators may rely on the tax file, but personal criminal responsibility and intent still require their own evidence.

Current Article 218 thresholds

The consolidated Criminal Code states that a large amount exceeds GEL 100,000 and a particularly large amount exceeds GEL 150,000. Identify whether the allegation concerns principal payable tax, which periods and tax types were combined, and how amendments, credits, payments or adjustments affect the figure.

Who was responsible for the decision?

A director’s title does not show who prepared or approved the return, controlled the account, received advice or knew that information was allegedly false. Map the accountant, finance officer, director, beneficial owner and external adviser by period and transaction. Separate access rights from actual decision-making.

Reconstruct the tax calculation

• Audit act, tax notice, assessment calculation and proof of service
• Returns, ledgers, invoices, customs data and bank statements for the relevant periods
• Contracts, delivery records, stock or service evidence and counterparty confirmations
• Accounting policies, workpapers, advice and disclosed treatment of disputed items
• Roles, approvals, system access and communication of each person involved
• Objections, adjustments, payments, deferrals and suspension decisions

Intent cannot be inferred from the amount alone

Test whether the disputed treatment was concealed or disclosed, consistent with records, based on advice, corrected voluntarily or affected by incomplete counterparty information. A mistake, technical classification dispute or negligence is not identical to intentional evasion, although the complete circumstances may still carry administrative or other consequences.

Interviews, searches and business continuity

Tax-crime investigations can involve summonses, accounting-record requests, searches, device seizure and property restraint. Preserve the original accounting system, access logs and complete communications. The company should nominate a response lead and separate corporate, director and employee interests before interviews.

Article 218(3) and property transfers

The Code separately addresses alienation of property or part of it to evade taxes. If that paragraph is alleged, examine the transfer date, tax notice, ownership, value, consideration, control and purpose rather than treating every disposal during a tax dispute as criminal.

What defence counsel can do

Counsel can reconcile the assessment with the accounting record, obtain tax expertise, identify the responsible decision path, protect rights during interviews and searches, challenge personal attribution and intent, coordinate the administrative tax dispute, test the 45-working-day mechanism and oppose disproportionate asset measures.