Opposition member of parliament Roman Gotsiridze, who previously chaired the country’s national bank, on Thursday raised concerns over proposed amendments to Georgia's tax code, expressing alarm over potential loopholes for money laundering. 

He highlighted the risk posed by allowing foreigners, including those with dubious backgrounds, to freely transfer shares from offshore accounts to Georgia and establish limited liability companies (LLCs) for a mere 2 GEL. 

Gotsiridze emphasized the “grave implications” of such provisions, labeling them as a potentially disastrous mechanism for money laundering.

During a parliamentary session, Gotsiridze cautioned against hastily adopting the changes, attributing the urgency to the ruling party founder and its honorary chair Bidzina Ivanishvili's alleged desire to shelter assets amidst increasing global scrutiny on offshore havens. He asserted that recent geopolitical developments, such as the Russian aggression in Ukraine, had rendered offshore jurisdictions less secure, prompting individuals like Ivanishvili to seek alternative havens for their wealth. Gotsiridze warned of the repercussions, including the potential for sanctions under international law.

The proposed amendments entail revisions to the tax code, including the forgiveness of tax debts accrued by individuals up to January 1, 2021, and corresponding taxes. 

Additionally, the amendments outline tax benefits for operations transferring ownership of assets from foreign enterprises registered offshore to Georgian entities, with a deadline of January 1, 2028. These benefits include exemptions from profit tax, income tax, property tax, and import duties for assets brought into Georgia.

One stipulation for accessing these tax benefits is that the same individual or group must own 100 percent of the shares in both the offshore enterprise and the Georgian entity. The amendments were introduced by several GD MPs.