January 15, 2006



Crackdown on Tax Evasion in Tbilisi

The Messenger reports that there has been yet another crackdown on widespread tax evasion in Georgia, but this time the target is Tbilisi’s nightclubs and restaurants. The move apparently follows a series of raids made on the Georgian capital’s eateries in November.

Two nightspots - Noa Noa and the Music Hall; two restaurants - Metelitsa and Geostar; and several cafes were sealed on Wednesday and remain sealed until a court issues a warrant to allow an inspection.

“We believe that the tax declarations filed by these establishments show a turnover that is much smaller that what these places are actually taking in. Our primary demand is that the real turnover be accounted for and the correct amount of taxes be paid,” the deputy head of Tax Department Koba Abuladze announced on Wednesday.

[…]

The tax department seems to be continuing the aggressive policy that was started two months ago by the Financial Police. On November 28 Financial Police agents shut down 15 out of a group of 50 well-known restaurants in Tbilisi that were suspected of tax evasion.

“For several years, a group of approximately 600 large restaurants which are registered in Tbilisi have consistently declared a total monthly turnover of only GEL 2.2 million. This simply can’t be correct as we know, for example, that McDonalds is 100 percent white and legal and its monthly turnover accounts for one third of this sum,” the head of the Finance Police David Kezerashvili told journalists in November after the first round of raids.

If only such things could happen here in Yerevan. Most of Armenia’s restaurants, cafes and nightspots are owned by government officials or their friends and relatives. They regularly avoid paying their taxes and are also believed to under-report their workers’ salaries.

While we’re at it, if someone could introduce the better customer service to be found in Tbilisi into Yerevan, I’d also be obliged.

Posted by Onnik @ 11:54 pm. Filed under: Armenia, Georgia, Corruption, Caucasus, Cuisine, Entertainment







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