TBILISI: Proposed changes to the Tax Code of the Republic of Georgia will increase penalties for those evading customs duties and those infringing customs controls applicable to cash and certain securities.
The Budget Committee has agreed changes that will significantly increase penalties for incorrect customs declarations that would result in a loss of tax for Georgian coffers and for money laundering offenses.
Where the value of the concerned transaction(s) exceeds GEL30,000 (USD13,340) but is less than GEL50,000, the penalty will increase from GEL1,000 to GEL3,000. Where the value is between GEL50,000 and GEL100,000, the penalty will increase from GEL3,000 to GEL5,000.
For incorrect declarations involving sums over GEL100,000, a ten percent penalty will apply.
The increased penalties are intended to bring Georgia’s regime closer into line with international standards on money laundering, to support ongoing negotiations on visa-free access to European Union countries for Georgian citizens.
