White-collar & financial crime

Tax Evasion

Tax Evasion in Georgia: Business-focused criminal defence for investigations involving companies, directors, accounting, transactions, tax, customs and restrained assets.

English legal guideTbilisi · Georgia-wide
Short answer

Tax Evasion in Georgia: Business-focused criminal defence for investigations involving companies, directors, accounting, transactions, tax, customs and restrained assets.

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Financial investigation

Follow authority, knowledge and the transaction—not titles

A tax assessment, filing error and intentional criminal evasion are different questions governed by tax and criminal rules.

Transaction question

What tax duty and period are alleged, how was liability calculated and what proves deliberate evasion by the accused?

A flow-of-funds chart may show movement without proving beneficial ownership, criminal origin or what each participant knew.

Records that test the prosecution theory

Returns, ledgers, invoices, bank data, accounting workpapers, advice, audit correspondence and calculation model.

  1. AuthorityMap signatures, delegations, approvals and system access.
  2. EconomicsReconcile contracts, performance, accounting treatment and actual benefit.
  3. KnowledgeSeparate each person's information and decisions at the relevant time.
  4. Proceeds and restraintTest tracing, ownership, valuation and third-party interests.
Potential Criminal Code provisions

Articles that may enter the qualification

These provisions are orientation points, not a conclusion. An investigation may start under one article and later be narrowed, expanded or reclassified as facts, expert results, article parts, aggravating circumstances and procedural decisions develop.

Article 218

Tax evasion

The tax assessment does not by itself prove criminal liability; amount, duty, reporting, control, intent and current thresholds require separate analysis.

Read full Article 218 text on this page
Criminal Code text on this page

Read the relevant provisions before the external source

The operative English text below is reproduced from the official consolidated Criminal Code of Georgia, publication 296, accessed 9 August 2026. Formatting has been normalised for on-screen reading; the current Georgian-language consolidated text controls if wording or timing differs.

Article 218Tax evasion

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.

Open Article 218 in the official consolidated Criminal Code
Defence work

How counsel turns the issue into a case plan

For tax evasion, counsel can identify the operative procedure and decision-maker, test the prosecution theory against each legal element, obtain lawful defence material, frame expert or disclosure requests, preserve objections and prepare the next motion, hearing or cross-border step. Advice must be based on the actual record rather than the page title alone.

First controlled step

Reconcile the tax computation independently and preserve accountant-client communications lawfully.

Questions clients ask about tax evasion

Does Article 218 — Tax evasion — automatically apply to Tax Evasion?+

For Tax Evasion, Article 218 may provide a starting point, but a page title is not a legal qualification. Investigators and prosecutors must match proved facts to every element, part and aggravating circumstance. The qualification may be narrowed, expanded or changed after expert results, new evidence, a defence motion, prosecutorial review or a court decision. The tax assessment does not by itself prove criminal liability; amount, duty, reporting, control, intent and current thresholds require separate analysis.

Which factual boundary is decisive in a Tax Evasion case?+

In a Tax Evasion case, the evidence must distinguish criminal deceit or appropriation from commercial failure, accounting error and civil non-performance. That boundary is tested through the person's individual conduct, knowledge or intent, the legally classified consequence and every circumstance relied upon to move the allegation into a different article or aggravated part.

What evidence can prove—or undermine—the allegation of Tax Evasion?+

The focused record for Tax Evasion is not the same as for every offence. Priority material includes contracts, approvals, ledgers, bank records, tax files, devices and role-specific communications. The defence should test provenance, completeness, authorship, lawful collection, chain of custody and whether each item proves the disputed element rather than merely repeating the accusation.

Can the article or charge for Tax Evasion change after the investigation starts?+

Yes. For Tax Evasion, Article 218 may be a starting map, but expert results, quantity or value, injury classification, individual role, attempt or participation, a defence application, prosecutorial review or a court decision may support a different article, part or legal outcome.

What should be preserved immediately in a Tax Evasion matter?+

In a Tax Evasion matter, preserve the original chronology, procedural records and the topic-specific material before routine loss or alteration. Early advice is important because a poorly coordinated corporate response can create conflicts, overwrite data or blur individual roles; preservation must be lawful and must not involve hiding, changing or coordinating evidence.

Sources & legislation

Primary sources for this guide

Legislation can change and official English translations may lag the Georgian text. Check the current consolidated version and obtain advice before relying on a deadline, offence classification or remedy.

Criminal Procedure Code of GeorgiaOfficial consolidated Criminal Code — current text & PDFMinistry of Finance Investigation Service
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