Results of the tax system reform in Georgia and prospects of its development

For advancement of the tax system of Georgia it is essential the taxation to be grounded by the following principles: correspondence with the existing economic conditions in order the tax code to become actually effective enactment, and taxes to be actually calculated and paid to the budget; dramatic decline in motivation of tax evasion and corrupt deals; focus on the encouragement of the economic development by investment incentives; taxpayers and state administration should build tax relations based upon principles of equal partnership; every tax should have a clearly expressed goal and purpose; taxes and rules of tax management should not entrench on human rights, including economic and social ones; an average tax burden should be reasonable and tolerable for a taxpayer; imposition of a tax should be economically reasonable, while the long-term results are to be predictable and justified; imposition of a tax for a shortterm fiscal or other logical result should not be accepted, if it is clear that in the medium- and long-term perspective it will turn into a factor impeding the economic development; taxation should be sustained, so that a tax-payer may make long-term planning of the activities; any amendments to the tax legislation as well as procedures of enactment of those amendments should be strictly regulated.