On the basis of Article 21 (b) of the Organic Law on Public Defender of Georgia, Public Defender of Georgia addressed the Minister of Finance of Georgia to study issues of accrual of land and property taxes on IDP collective centers being under private ownership and to make relevant decision.

Emzar Gagnidze, Director of JSC “Health” addressed Public Defender of Georgia on examining the legality of Governmental Order #607 of August 14, 2009 on “Payment of Tax Debts Created in Previous Years”.

As established by the Office of Public Defender of Georgia, buildings under the ownership of JSC “Health” (Sanatorium “Borjomi”, #133 Meskheti Str, Borjomi; “Banaki”, village Chkaduashi, Zugdidi; “Sapovnela” #18 Ilia Chavchavadze Str, Terjola; “Simoneti” village Zeda SimoneTi, Terjola and “Sakartvelo”, #41 Sh. Rustaveli Str, Tskaltubo) have been IDP collective centers from 1993. As a result, JSC “Health” is unable to utilize its possessions in favor of its business interests. Despite these circumstances, JSC “Health” is accrued with land and property taxes annually. In accordance with the existing Tax Code the entrepreneur is under the obligation to implement the measures imposed for enforcement of payment the tax arrears.

In addition, for continuing business activities of JSC “Health” and preserving employees, Emzar Gagnidze is obliged to pay off tax liabilities by selling his property.

According to the Law of Georgia on “Internally Displaced Persons from Occupied Territories of Georgia” state is the main duty bearer for protecting rights of IDPs. Therefore, the realization of the right of the IDP to live in a temporary household is a state obligation.

Obviously, these duties do not imply the restriction of right to property, guaranteed by article 21 of the Constitution of Georgia.

The realization of Article 30 (2) of the Constitution of Georgia on the development of independent entrepreneurship is also of significant nature.

Therefore, Public Defender of Georgia considers that the Ministry of Finance of Georgia should establish the systemic approach toward the accrual of land and property taxes and measures imposed for enforcement of payment the tax arrears in order to avoid the violation of rights of entrepreneurs, which in itself represents the infringement of rights of JSC “Health”.