Supporting Tax Dispute Resolution System Reform
We recently finished assessing the potential impact of various proposed reforms of the Council of Tax Appeals under the Ministry of Finance of Georgia – the highest administrative body in Georgia dealing with tax disputes. The main goal of the project was to evaluate the shortcomings of the existing tax dispute resolution (TDR) system and to bring it in line with good international practices, ultimately resulting in the establishment of a fairer, as well as more effective and efficient, TDR system. Accordingly, the project team developed three envisaged scenarios for reform of the TDR system and performed regulatory impact assessments (RIAs) thereon.
To identify the gaps in the existing TDR system, the PMC Research team studied systems in comparable jurisdictions. In addition, the team interviewed and surveyed taxpayers and tax consultants to gather their concerns and recommendations, which have subsequently been reflected in the report.
Our analysis shows that the establishment of an independent TDR body would be the optimal tax policy option and its benefits significantly outweigh the additional costs associated with such reform.
The findings of the analysis were presented to the consulted stakeholders and the Ministry of Finance.
“The Georgian private sector looks forward to seeing a more independent and efficient Council of Tax Appeals that will deliver higher-quality decisions. We hope that this study will serve as one of the stepping stones toward reforming the Council and, ultimately, improving tax certainty and the business environment in Georgia,”stated David Tomadze, Project Lead.
PMC Research wishes to express its thanks to the Ministry of Finance and tax experts for their unreserved support and contributions in the course of the project.
The project was implemented as part of the USAID Economic Governance Program.