Charter of Audit Department of Legal Entity of Public Law – Revenue Service

General Provisions

1. Dispute Department (hereafter referred as department) of Legal Entity of Public Law – Revenue Service (hereafter referred as Revenue Service) is a structural unit of Revenue Service.
2. General supervision of activities of the Department are carried out by Director General /curator deputy of the Revenue Service.
3. In its activities Department abides by the Constitution of Georgia, international agreements, Tax Code of Georgia, other normative acts and provisions.
4. Department has its own stamp
5. Legal address for the Department is: Tbilisi, Gulua str. N4

Legal basis of the Department Activities

 Legal basis for the Department Activities are the law of Georgia “about Revenue Service”, Charter of Revenue Service, orders issued by Minister of Finance of Georgia, individual administrative acts issued by Director General of Revenue Service, this Charted and other legislative and sub-legal normative acts.

Department’s Relations with Third Parties

1. Department is a Tax Authority within the Revenue Service.
2. When caring out its functions Department acts on Behalf of State
3. Department is independent in executing its obligations and when necessary cooperates with other governmental authorities.

Delegation of Powers

1. When resolving separate issues, Head of the Department can delegate powers to Department employees.
2. Department employees are prohibited from transfer of powers and obligations granted to them in accordance with Georgian law.

Functions of the Department

1. Within its competence Department ensures:
a. Definition of risk criteria and principles for selection of taxpayers for tax audit purposes, participation in automated risk management system operations, monitoring and analysis;
b. Monitoring, analysis and participation in automated risk management system used for goods declared on Georgia’s Customs Territory or/and used for State Control when crossing Customs Border.
c. Selection, analysis and verification of documents presented during Border Crossing of Georgia’s Customs Territory or during Clearance procedures.
d. Selection of Taxpayers for Tax Audit;
e. Organizing and carrying out of Taxpayer Tax Control measures (Including on Taxpayer’s own Initiative);
e1. Within the scope of competence, when carrying out Tax Audit measures, elaboration of Valuation Reports by authorized-certified employees on the bases of order of Head/Deputy Head of Department to determine market value of goods. (2.04.2012 N5545)
f. Preliminary review of Tax Audit, performed by Department, with the participation of Tax Payer and adoption of appropriate decision;
g. Entering (assessement/reduction) of additionally assessment/reduction to Tax, Penalty Interest and Fines by Department into Taxpayers personal card; (11/10.2011 N9054)
h. e. Elaboration  and transfer of a “Tax Notice” of additionally assessment/reduction to Tax, Penalty Interest and Fines by carried out by Department; (11.10.2011 N9054)
i.  Assessment/Reduction of amounts as prescribed by Article 61 Part 2 sub-paragraph “d” of Tax Code of Georgia;
j. Performance of Post Audit;
k. Setting-up, performance and development of subsequent complex evaluation procedures for desk and field audit;
l. Ensuring that information received from foreign authorized authorities regarding the export-import operations and tax information is processed, analyzed and delivered to recipient;
m. Proceedings of tax and administrative disputes
n. Proposals of legislative improvements, drafts of appropriate normative acts, instructions, method guidelines and procedure/situational manuals to Law Department of Revenue Service;
o. Review of correspondence of taxpayer, their representatives or other interested parties;
p. Performance of other tasks assigned by management of Revenue Service.
2. Within the scope of competence, structural units and structural sub-units of the department, prepares information regarding ongoing Tax Disputes in Dispute Resolution Board by the Ministry of Finance of Georgia or the Revenue Service and provides Dispute Resolution Board by the Ministry of Finance of Georgia or the Revenue Service with appropriate data and documents.
3. Within the scope of competence, structural units and structural sub-units of the department, participate in Tax Disputes ongoing within the system of Ministry of Finance and/or ensure execution of decisions regarding Tax Disputes

Management of the Department

1. Department is managed by Head of Audit Department (hereafter referred as – Head of Department), who is assigned and released to position by Director General of Revenue Service.
2. Head of Department has a First Deputy and Deputy, who are assigned and released to position by Director General of Revenue Service.
3. Other employees of the Department are assigned to position and released from position by Director General of Revenue Service.
4. Head of Department within their competence:
a. Makes decisions, acts in behalf of Department, represents Department in relations with other governmental authorities;
b. Ensures the execution of the Constitution of Georgia, laws of Georgia, Presidential ordinances, Governmental decrees, orders of Minister of Finance, individual administrative acts issued by Director General of Revenue Service and other legal acts;
c. Carries out management, coordination and supervision of activates performed by structural units of the Department. When required, issues individual administrative-legal acts to ensure the execution of appropriate functions by appropriate structural unit and Department employees;
d. Makes decisions regarding the organization, setting-up and performance of Tax Audit;
e. Makes decisions regarding review results of Tax Audit date (Tax Audit Tax);
f. Presents proposals regarding employee encouragement or imposition of disciplinary responsibilities;
g. Answers to Director General of Revenue Service;
h. Issues individual administrative-legal acts;
i. Changes, invalidates or annuls decisions, made by authorized employee of the Department, that are not in compliance with Georgia’s legislation or are inexpedient;
j. Makes decisions regarding Assessment/Reduction of amounts as prescribed by Article 61 Part 2 sub-paragraph “d” of Tax Code of Georgia;
k. By means of individual administrative-legal act forms advisory body to the Head of Department and defines its size and staff;
l. Executes other authorities in accordance to Georgian law
5. In absence of Head of Department their responsibilities are carried out by First Deputy Head of Department.
6. First Deputy and Deputy of Head of Department manage fields defined by individual administrative-legal acts issued by Head of Department.

Structure of the Department

1. Structural Units of the Department are:
a. Audit Main sub-division;
b. Withdrawn (15.09.2011 N7960)
c. Audit Proceedings sub-division;
d. Risk Management sub-division;
e. Alternative audit management sub-division; (15.09.2011 N 7960)
f. Quality control Division; (15.09.2011 N 7960)
g. Withdrawn; (1.03.2012 N 2796);
h. Tax monitoring administration. (15.09.2011 N 7960)
2. Structural units of the department are made up of following structural sub-units:
a. Audit main sub-division:
a.a) Tax audit sub-division 1;
a.b) Tax audit sub-division 2;
a.c) Tax audit sub-division 3;
a.d) Tax audit sub-division 4;
a.e) Tax audit sub-division 5;
a.f) Tax audit sub-division 6;
a.g) Tax audit sub-division 7;
a.h) Tax audit sub-division 8;
a.i) Tax audit sub-division 9;
a.j) Tax audit sub-division 10;
a.k)Tax audit sub-division 11.
b.    Withdrawn (15.09.2011 N 7960)