The Georgian Parliament is swiftly considering an amendment to the Tax Code, which, if adopted, will facilitate the transfer of businesses registered in the so-called Offshore Zones to Georgia. Deputy Roman Gotsiridze states that the changes are tailored to the honorary chairman of the ruling Georgian Dream, Bidzina Ivanishvili, and will allow the billionaire to bring the property "hidden offshore" to Georgia tax-free.
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"Bidzina Ivanishvili's money hidden offshore should be laundered by bypassing international norms against money laundering and Georgian legislation. Ivanishvili is given the right to import his property, self-financing, stocks, shares, and money tax-free.
This means that Bidzina Ivanishvili will not settle anywhere in the world. He will not settle in the European Union or the USA, but he considers his property insecure even offshore and has decided to run away, turning Georgia into his personal fortress.
Ivanishvili does not know the Georgian people. Nobody will forgive him for usurping the country," said Roman Gotsiridze, who believes that Ivanishvili is waiting for sanctions.
Expert Gia Khukhashvili asserts that the draft law of Georgian Dream legalizes money laundering of questionable assets in "gray zones" at "preferential prices." He believes that the issue is much more serious than just the blind transfer of Ivanishvili's assets in Georgia.
"We may see all the Russian black money signed for various oligarchs in Georgia. Naturally, this will eventually make its way to the West, as they will be forced to sanction our entire financial and banking system. Accordingly, we naturally become a part of the Russian Empire," says Khukhashvili.
The expert does not rule out that by adopting the Agents Law in an aggressive form, someone is trying to show Putin that he controls everything and that his assets will be reliably protected in Georgia.
Georgian Dream adopted the amendments to the tax code today in the first reading, with 82 votes. The vote took place after supporting the Russian law on so-called agents.
The draft law stipulates that in the case of the transfer of ownership rights to all assets (including shares) of a foreign enterprise registered in a country with preferential taxation to a Georgian enterprise before January 1, 2028:
- Within the framework of this operation, the income/benefit received by the foreign enterprise registered in the country with preferential taxation and the partner natural person is exempted from profit/income tax;
- ringing/Importing assets/goods into Georgia is exempt from import duty;
- The Georgian enterprise is exempt from property tax until January 1, 2030, concerning the asset received within the scope of this operation.
The mentioned applies: 1. If 100% of shares in a foreign enterprise registered in a country with preferential taxation and a Georgian enterprise are owned by the same individual or group of individuals. 2. Only in the case of the transfer of an asset owned by a foreign enterprise registered in a country with preferential taxation.
The explanatory note of the bill states that investment in Georgia is often carried out by foreign enterprises registered in a country with preferential taxation (offshore), which conduct business in Georgia through subsidiaries. This practice involves the risk of tax evasion and hinders effective tax administration. The authors of the draft law note that to prevent tax evasion, ensure transparency of activities, and simplify tax administration, it is important to promote the process of transferring assets from companies registered in a country with preferential taxation to Georgia.
The initiators of the legislative change are Georgian Dream MPs - Paata Kvizhinadze, Anton Obolashvili, Bezhan Tsakadze, Zaal Mikeladze, Irakli Zarkua, and Gogi Meshveliani.
