Revenue Service: Omega Group Property to Be Sold on Auction

Georgia’s Revenue Service (RS) reports that the property of Omega Group, which is the producer of tobacco products, will be sold at auction if the company does not pay its debt to the state which accumulated as a result of not paying tax.

According to the agency, the Revenue Service has the right to sell the property of the company on the decision of two instance courts.

“Payment of taxes is mandatory for everyone to the amount and manner established by law. Taxes are transferred to the budget, from which funds are distributed to various financial or social and economic programs,” the RS stated.

It also says that Omega Group Tobacco (OGT) first violated the obligation to pay taxes in October 2014 which initially amounted to 18,444 GEL.

“As of March 2015, the company's tax liability increased to GEL 147,952…By January 6, 2016, the company’s debt had reached GEL 1,496.797. The company asked us to schedule a payment which was violated the same month,” the RS statement reads.

The agency explains that as of January 26, 2016, OGT's tax liability increased to GEL 3,402.943. At the same time, the payer's request was satisfied and a new schedule was set up which, according to RS, was violated almost every month.

“In total, the company applied to us 11 times to postpone compulsory measures against them and all their requests were satisfied. However, by the end of 2017, the taxpayer was no longer paying taxes…Their debt had reached GEL 38 million,” the statement reads.

RS says that this year the request of the company to give them more time was not satisfied and in August 2018, the accounts and stocks of the company were sequestrated. As of August 07, 2018, the company's debt stood at GEL 49,159.970.

“Accordingly, the Ministry of Finance of Georgia and the Revenue Service of Georgia are implementing measures envisaged by law to eliminate tax arrears and eliminate the existing debt,” the agency stated.

In March 2018, the Revenue Service appealed to Tbilisi City Court to obtain a permit for the sale of seized property of OGT. In June, the Tbilisi City Court satisfied the request of the Revenue Service, which was appealed by the company. On the decision of the Appeals Court on 25 July 2018, the company's complaint was not satisfied and the Revenue Service was granted permission to sell the sequestered property of Omega Group.

TV Company Iberia, which is owned by Omega Group, stated many times that the financial problems were created in order to out pressure on the TV station. The broadcaster stated they might shut down as their main financial donor was OGT.

In their joint statement, released mid-September, the staff of Iberia TV called on the Prime Minister and the Government of Georgia to reach agreement with Omega Group and enable the TV company continue functioning.

Omega Group asks the government to restructure and re-schedule their debt. According to them, the government does not help them because TV Company Iberia is often criticizing the authorities.

In addition, according to Iberia, Omega Group sued the former and current high-ranking officials of the court.

By Thea Morrison

Image source: Omega Group Tobacco