“Transparency International – Georgia” recently published a blog post about the new regulations concerning tax lien. We have since learned that the aforementioned amendments to the Georgian Tax Code and the law “On Enforcement Proceedings” were passed in violation of the general procedure for preparation and adoption of normative acts. The initial version of the draft amendments did not cover the aforementioned issues and the explanatory note (which, according to the law, must explain the rationale behind the amendments) did not provide an explanation for the new tax lien regulations. The explanatory note only mentioned that the draft law contained new regulations for lottery-related issues. Apparently, these amendments were deemed necessary after the Georgian State acquired a 70-percent share in Georgian Lottery Company.

The Georgian Government recently presented the 10-point Strategic Development Plan to the public. The Plan refers, among other things, to JSC Partnership Fund which, according to the Plan, is to perform an important role. Transparency International Georgia commented on the establishment of the Fund in April 2011, when Georgian Parliament started discussions on the relevant law. We suggested that the draft law needed to be clearer regarding the mechanisms of using privatization revenues and dividends from the state-owned companies for financing the Fund. We welcome the fact that the subsequent amendment to the law (10.11.2011, N5099) addressed the aforementioned concern and privatization revenues and dividends from state-owned companies were removed from the list of the fund’s financing sources.