Large-scale criminal scheme uncovered in Georgia

The Investigation Service of the Ministry of Finance of Georgia has unveiled a large-scale criminal scheme resulting in the loss of almost two million Lari from state coffers.

Today the Investigation Service charged 13 business owners for avoiding paying their taxes, which totalled "millions of Georgian Lari”, stated the Investigation Service in a press release.

More specifically, as a result of the criminal scheme, Georgia’s state budget was deprived of 1,880,000 GEL ($762,705/€701,600*).

The businesses, registered in Georgia’s capital Tbilisi and in other regions of the country, were initially fined and closed after it was discovered the businesses did not pay their obligatory taxes.

Next the 13 entrepreneurs, who collectively owned dozens of businesses, refused to pay the fines by registering new businesses with the same operations in a family members’ name.

After this the heads of the fined enterprises continued their business activities under the name of the new enterprises … and managed to avoid paying their fines to the [state] budget,” read the press release.

An investigation is now in progress under Article 2051 of the Criminal Code of Georgia. If found guilty the business owners face a prison sentence of six to nine years.

• Currencies are as of today’s National Bank of Georgia exchange rate.