Ministry of Finance Releases a Statement Regarding the Debt of TV Companies

The Ministry of Finance of Georgia has released a statement, warning the televisions that have accumulated state debt to pay it off. 

“On August 14, 2019, the Minister of Finance, Ivane Machavariani, publicly addressed TV broadcasters about the tax debt accumulated over the years and called on them to submit the proposal for debt restructuring and also to start paying off current debts.

The Revenue Service and the broadcasters are still continuing the process of negotiation over the debt restricting, as for the current tax liabilities, televisions have not covered their debt and thus, the Revenue Department has to take the measures according to the rules set by the Tax Code of Georgia.

The Ministry of Finance recognizes that media outlets play an important role in the democratic development of therefore the government took its interests into full consideration and the concession on the tax debt accumulated over the years and the ongoing negotiations over the debt restructuring prove it. Besides, the tax authority is not obliged to give public notice to the taxpayer about the measures provided by the Tax Code and this statement of the Ministry of Finance also means that the Ministry considers the interests of the TV broadcasters.

At the same time, such a concession to media outlets creates a non-competitive environment.

The state is obliged to protect the interests of all taxpayers and manage public finances, which means that the taxpayers’ money should be spent on each citizen, the state," reads the statement of the Ministry of Finance which was released on Monday.