Information update date: 09 August 2012

Legal Entity of Public Law Revenue Service’s provision of Tax Monitoring Department

General provisions

1. Legal Entity of Public Law – Revenue Service’s (hereinafter referred to as Revenue Service) Tax Monitoring  Department (hereinafter referred to as Department) represents a structural unit of Revenue Service.
2. Revenue Service Director General/Supervising Deputy Director General undertakes general supervision of the Department activities.
3. In its activities Department is governed by the Constitution of Georgia, international agreements, Tax Code of Georgia, other normative acts of Georgia and this provision.
4. Department has a stamp.
5. Legal address of the Department is: 1, M. Aleksidze St., Tbilisi, Georgia.

Legal Basis for Department Activities

Constitution of Georgia, Tax Code of Georgia, Law of Georgia “Referring to Revenue Service”, Provision on the Ministry of Finance of Georgia, Provision on Revenue Service, orders by the Minister of Finance of Georgia, individual administrative and legal acts by Director General of Revenue Service, this provision and other legislative and statutory normative acts of Georgia represent legal basis for Department activities.

Relationship of the Department with Third Parties

1. Department is a tax agency incorporated in Revenue Service.
2. When fulfilling its functions the Department acts on behalf of the State.
3. Department is independent in fulfilling its duties and as necessary it collaborates with other public authorities.

Delegation of Authority

1. When solving certain issues Head of the Department may delegate authority to an employee of the Department.
2. In compliance with a rule prescribed by the Law of Georgia, Department employee is not allowed to transfer the imposed to him/her liability or designated authority to another employee.

Department Functions

1. Within its competence Department ensures:
a) Detection of individuals operating without state/tax registration/recording;
b) Current control of taxpayer activities;
c) Control of cash register usage;
d) In cases prescribed by Part 1, Article 286 of Tax Code of Georgia seizure and release of transported/purchased goods; (1.08.2011 N5679);
e) Detection of taxpayer’s production and delivery rules violation facts on the goods subject to excise marking;
 f) Certifying a document on writing off expired and/or unfit for use or further delivery commodity values;
g) Control of compliance with permit conditions by a holder of permit for each type of gambling and other profitable games;
h) In cases prescribed by Paragraph 244 of Tax Code of Georgia withdrawing cash from individual’s cash register;
i) Control of gambling business charge rating use;
j) Sealing inoperative gambling business charge facilities;
j1) Control of compliance (except for compliance with permit conditions in a free trade point located within a control zone by the Georgian economic border) with permit conditions by free-trade point operation permit holder; (1.11.2011 N 9743);
k) Management of Tax and administrative legislation violation cases;
k1) In the course of carrying out current control procedures and/or managing legislation violation cases within the competence, perform goods examination with the purpose of defining goods quantity, composition, basic features and market value; (1.08.2011 N5679)
k2) Destruction of goods subject to governmental supervision. (19.12.2011 N 11688)
k3) Assigning or cancelation taxpayer’s status of microbisness subject to special tax regime and/or to fixed tax regime; (2.04.2012 N 5526)
l) Fulfilling tasks and assignments by Revenue Service management, exercising other authority prescribed by legislation.
1¹. Aiming at detection and elimination of tax legislation violation prescribed by Part 1, Article 286 of Tax Code of Georgia authorized Department employees are entitled to request an identity card, supporting documentation on vehicle and goods, perform visual inspection of a vehicle. In the case of disobey from corresponding person the authorized Department employee is entitled to take corresponding measures prescribed by the Georgian legislation. (1.08.2011 N5679)
1². An authorized Department employee is entitled to fix a date for an individual to eliminate tax legislation violation without execution of a report on tax legislation violation according to a method and in cases prescribed by the Minister of Finance of Georgia. (25.11.2011 N 10624)
2. Within its competence Department makes provisions for elaboration of draft proposals on legislation improvement, appropriate normative acts, instructions, method guidelines and procedure manuals and further submission to Legal Department of Revenue Service.
3. Within their competence Department structural units and sub-units make provisions for preparation of information associated with consideration of the existing legal actions by the Ministry of Finance of Georgia council or of the current tax or other cases in Revenue Service and provision of the appropriate materials and documentation to the legal action-considering Council by the Ministry of Finance of Georgia or to Revenue Service.

Department Management

1. The Department is headed by Head of Tax Monitoring Department (hereinafter referred to as Head of Department) who nominated by Director General of Revenue Service , gets designated to a position and dismissed from it by the Minister of Finance of Georgia.
2. Head of Department has deputies who get designated to positions and dismissed from them by Director General of Revenue Service.
3. Other employees of the Department get designated to positions and dismissed from them by Director Gneral of Revenue Service.
4. Head of the Department within his competence:
 a) Takes decisions, acts on behalf of the Department, represents the Department in relations with other governmental authorities;
b) Makes provisions for compliance with the Constitution of Georgia, Laws of Georgia, decrees by the President of Georgia, resolutions by the Government of Georgia, orders by the Minister of Finance of Georgia, individual administrative and legal acts by Director General of Revenue Service and other legislative acts;
 c) Undertakes management, coordination and supervision of Department structural units activities. As necessary issues individual administrative and legislative acts relative to fulfillment of appropriate functions by a corresponding structural unit and Department employees;
d) Takes decisions related to arrangement, preparation and performance of current control procedures as well as within the Department’s competence undertakes measures to ensure tax delinquency payment;
e) In statutory cases takes decisions on results of reviewing administrative legislation violation report;
 f) Makes proposals on Department personnel encouragement (reward) or imposing disciplinary responsibility on them;
g) Is accountable to Director General of Revenue Service;
h) Issues individual administrative and legislative acts;
i) Alters, invalidates or cancels decisions taken by authorized employees of the Department  and private tax officer that do not comply with the legislation of Georgia or are inexpedient; (30.12.2011 N12348)\
j) Forms Head of Department’s advisory body by an individual administrative and legislative act and determines its number and personnel;
k) Exercises other authority in compliance with the Georgian legislation.
5. By the time of Head of Department’s absence his duties will be executed by one of Deputy Head of Department  by decision of Director General of Revenue Service

Department Structure1.08.2011 N5679)

1. Structural units of the department are:
a) Analysis, Planning and Legal Issues Division;
b) Monitoring Division;
c) Tbilisi Division;
d) Kvemo Kartli Division;
e) Shida Kartli Division; (1.09.2011 N 7309)
f) Kakheti Division;
g) Samtskhe-Djavakheti Division;
h) Imereti and Racha-Lechkhumi Division;
i) Guria and Samegrelo-Zemo Svaneti Divisionn;
j) Adjara Division;
k) Current Control Division;
l) Commodity Supply Expertise Division
2. Department structural units consist of the below stated structural sub-units:
a) Analysis, Planning and Legal Issues Division a.a) Analyzing and Planning Unit;
a.b) Legal Issues Unit.
a.c) Mediation Unit. (1.09.2011 N 7309)
b) Tbilisi Division:
b.a) Gldani-Nadzaladevi Sector;
b.b) Didube-Chughureti Sector;
b.c) Old Tbilisi and Didgori Sector;
b.d) Vake-Saburtalo Sector;
b.e) Isani-Samgori Sector;
b.e1) Mtskheta-Mtianeti Sector; (1.09.2011 N 7309)
b.f) Tax and Administrative Legislation Violation Division.
c) Current Control Division:
c.a) Unit 1;
c.b) Unit 2.