The Revenue Service of Georgia has approved a new rule allowing taxpayers to have 50% of fines canceled if they pay the remaining balance voluntarily. According to a legal review by BDO, the change is intended to encourage faster settlement of tax debts and reduce the number of appeals filed by companies following tax audits. This process often prolongs payments and increases administrative costs for both the state and businesses.
The new methodological instruction clarifies how fines and taxes should be paid and provides illustrative examples. It specifies that payments must be made directly to the treasury account, rather than by using existing balances or excess amounts recorded on the taxpayer’s registration card. The transfer must be an actual payment, and it cannot be applied toward previously existing tax debts. The rule applies in cases where a fine is imposed alone, or alongside taxes and fees resulting from an inspection.
However, there are exceptions. Taxpayers cannot benefit from the fine reduction in cases involving serious violations, such as those defined under Article 280 of the Tax Code (illegal tax calculations through fictitious transactions or forged documents) and Part 3 of Article 282 (issuing false VAT invoices or recording fictitious operations).
The instruction also outlines procedures and deadlines for submitting applications to request the fine reduction. A sample form is included, enabling taxpayers to officially apply for the benefit. This initiative marks a step toward simplifying Georgia’s tax compliance framework and incentivizing voluntary fulfillment of tax obligations.
