Supreme Court of Georgia

Dispute resolved for the favor of entrepreneur

Published: 03/31/2011

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According to the judgment March 30, 2011 of the Supreme Court of Georgia, the cassation was satisfied, judgment of September 3, 2010 of the Chamber of Administrative Cases of Kutaisi Court of Appeal was abolished and the new judgment was determined by the cassation court according to which the individual administrative-legal acts, established by the taxation bodies, were announced abolished.
The request of sole proprietor “Bakanidze” was concerned to the lawful issues of extra charge amounts as a result of inventory conducted in the manufactory. Taxation body with the motivation, that non registered goods were kept at the sole proprietor, which was not shown in the accounting records according to the determined rules, utilized the sanction envisaged by the Article 143 of Tax of Code and charged sole proprietor with surcharge.
The Supreme Court based on the presented evidences considered, that coming out from the case materials the fact of violation of Tax Code by the sole proprietor was not determined, which gave the base to illegality of individual administrative-legal act adopted by the taxation body. That’s was the reason why they didn’t meet the requirements of Taxa Code as well as the requirements of General Administrative Code.