Georgian government calls on TV channels to pay off tax debt
Georgian Minister of Finance Ivane Matchavariani stated that it is necessary for TV companies not to accumulate debts anymore and to gradually pay off outstanding taxes accumulated over the years. Photo: Ministry of Finance.
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Georgian Finance Minister Ivane Matchavariani has called on leading Georgian TV companies with high tax debt to present plans to restructure their accumulated debt within about two weeks.
Matchavariani said that previously, TV companies used to accumulate debt which was then later written of. He said this is a “malicious practice and it is time to change it”.
He said that the indebtedness of larger TV channels is particularly unfair taking into account that there are smaller TV companies which pay their taxes ‘honestly’, while larger companies accumulate debt.
Matchavariani said that there are a number of models, agreements and timetables that can be used for TV channels to ease the tax and debt burden.
Matchavariani stated that it is necessary for TV companies not to accumulate debts anymore and to gradually pay off outstanding taxes accumulated over the years.
The Georgian TV companies that face debts are:
- Rustavi 2 TV – 28 million GEL
- Imedi TV– 19 million GEL
- Maestro TV– 8 million GEL
A financial crisis has led the new owner of Rustavi 2 Kibar Khalvashi to sell the company as, in his words, his “financial ability is not enough to pull the company out of a deep crisis”.
Discussion of Georgian TV channel Rustavi 2 continues after its new owner Kibar Khalvashi announced the sale of TV company.
The new owner of Rustavi 2 Kiber Khalvashi, who was given 100 per cent of the company’s shares on July 18, is selling the broadcasting company, reports Rustavi 2.
Dismissed Director General of Georgian private broadcaster Rustavi 2, Nika Gvaramia has been questioned at Tbilisi City Court today. The questioning lasted more than two hours. Nika Gvaramia said the questions mainly referred to the advertising contracts [he concluded].
Former Defence Minister Irakli Okruashvili says that he gave testimony in the Rustavi 2 case back in 2014 under the Georgian Dream leadership to have the support in the mayoral elections he ran. He said in the testimony in April 2014 that Rustavi 2 was illegally seized on the demand of ex-President Mikheil Saakashvili from its lawful owners and founders Jarji Akimidze and David Dvali in 2004.
New Rustavi 2 owner Kibar Khalvashi has decided not to sell the TV station, and instead will try to bring the channel out of debt.
Fiscal stability will be put first, said candidate for Minister of Finance Ivane Matchavariani today in parliament.
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The Georgian Ministry of Finance has urged Georgian TV companies which have current tax debts to the state to pay the principal of the accumulated debt starting October 1, 2019 and has given them one day to comply.
Today’s meeting between the directors of several Georgian TV stations and Minister of Finance Ivane Matchavariani has ended without a result after December 25th, when the Revenue Service ordered TV stations, including Rustavi 2, TV Pirveli and Kavkasia TV, to pay off the principal of their accumulated taxes starting from October 1, 2019.