Parallel to the Russia-style “foreign agent” law that sparked mass protests across Georgia, GD has hastily adopted package of laws dramaticly simplifying inflow of capital from offshore accounts in to Georgia removing at zero tax rates.
It is widely believed the move is to accommodate Georgian Dream honorary chair Bidzina Ivanishvili’s immediate financial plans.
According to the bill, in the case of a company transfer registered in a foreign country with preferential taxation (offshore zone) to a Georgian enterprise, the enterprise and partner individuals are to be exempted from taxation of the received income.
Paata Kvizhinadze, Budget and Finance Committee Chair in Georgian Parliament, claimed many offshore companies are returning to their countries because "there is more transparency, more monitoring, taxes have increased” in offshore countries and GD doesn’t want to lose those assets.
Critics claim, however the initiative is introduced to guarantee safe transfer of Bidzina Ivanishvili’s assets back to Georgia.
"Bidzina Ivanishvili is allowed to transfer his property and shares hidden offshore to Georgia without paying taxes and bypassing the norms against money laundering,” UNM MP Roman Gotsiridze said
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