Omega Group Resumes Work

Omega Group has been allowed to renew production after it paid part of its debt to the State, which accumulated due to its not paying taxes for four years.

Georgia’s Revenue Service (RS) told media that after paying GEL 1 million to the budget, the accounts of the Omega Group Tobacco (OGT) were unfrozen and the company purchased excise stamps in accordance with Georgian legislation.

“On October 26, the company OMG transferred a part of the debt, GEL 1 million, to the state budget. The company asked for permission to renew operations for the purpose of maintaining production and existing jobs. The Revenue Service satisfied the request of the company,” the statement of the RS reads.

The agency says that now Omega Group has to present a schedule how it is going to pay back the remaining debt, which is up to GEL 51 million.

The previous statement of the RS reads that OGT first violated the obligation to pay taxes in October 2014, which initially amounted to 18,444 GEL, which increased year by year.

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.

The RS said the company applied to them 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 and the debt had reached GEL 38 million.

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.

Omega Group Tobacco work was suspended for three months before they paid GEL 1 to the budget. The company accused the authorities of pressure, saying the reason was Omega-owned opposition-minded Iberia TV Company, which suspended broadcasting this month due to lack of finances.

The authorities rejected the accusations, saying everyone has to pay taxes and if Omega avoids this responsibility, proper legal measures would be carried out, including selling their shares.

General Secretary of the ruling Georgian Dream (GD) party and Mayor of Tbilisi Kakha Kaladze stated every job is important for the government.

“As soon as Omega started paying taxes, it was allowed to resume working… Business is very important for us. It creates welfare in the country, contributes to economic development and employs people,” he stated.

Economic expert Soso Archvadze says it is a very positive step that Omega started paying the debt. According to him, the company realized that everyone has to pay taxes and the state’s approach in this regard is quite strict.

“The fact that the company started paying debt before the October 28 presidential elections and not after is even better. This means the company is well aware of its responsibilities. Everyone has to pay taxes,” he said.

The expert says that Georgia has a very liberal tax regime and the state's attitude towards business requires a similar attitude from the companies.

By Thea Morrison

Image source: OGT