Supreme Court of Georgia

Court dispute was solved for the favor of private person

Published: 04/01/2011

According to the judgment March 30, 2011, of the Supreme Court, the cassation of the Ministry of Finance of Georgia and Income Service wasn’t satisfied, correspondingly, the judgment of the Chamber of Administrative Cases of Kutaisi Court of Appeal remained in force according to which the Order October 8, 2007 of Batumi Tax Inspection, “Tax Request” VAT of October 9, 2007, social and income taxes in the part of extra charge were abolished and the administrative organ was charged with the issue of new administrative-legal act after the study circumstances of the case.
The inspection of the sole proprietor was conducted on the base of tax examination. The taxation body considered, that the income was not taken from the personal property rental income, as well as material value, the absent of relevant documents were considered non-registered. Declared and established examination of VAT, the difference between social and income taxes by the entrepreneur was submitted to extra charges.
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 Tax Code as well as the requirements of General Administrative Code.