On 21 February 2014, at the plenary session of the Georgian Parliament, Member of the Parliamentary Majority, Zviad Dzidziguri, stated: “Ninety-nine percent of lawsuits between business and the state were decided in favour of the state. Over the last year, however, 70% of such disputes were resolved in favour of business. Furthermore, currently, at the Council of Appeals at the Ministry of Finance of Georgia more disputes are resolved in favour of business than the government.
FactCheck took interest in the statement of the MP and decided to verify its accuracy.
We interviewed Zviad Dzidziguri about the abovementioned statement. Dzidziguri informed FactCheck’s Parliamentary Representative that he has no specific statistical data on the aforementioned issue with his statement being based upon generally available information disseminated through the press and other media.
Aiming to shed more light on the matter, we addressed the Supreme Court of Georgia with the following questions:
The statistics show that in the first three quarters of 2013 the number of complaints sustained in favour of individuals was significantly higher although the same situation was observed in 2012 and 2011. Regardless of the fact that in 2009 and 2010 the majority of the complaints were not satisfied, the situation improved in the next two years and, thus, there has been no significant breakthrough in 2013 in this respect.
Conclusion
Our query revealed that in the courts of all three instances, the number of administrative cases won by the state agencies never exceeded 70.6% throughout the period 2008-2012. The statistics of tax disputes, in particular, is somewhat similar as well. In this case the percentage of the cases won by the state agencies in the Courts of First Instance was quite high; however, it never exceeded 84%. Of note is the fact that the situation has remained rather unchanged in 2013 as well with the index of the last year in this respect equalling 78%. As illustrated by the statistics, the number named by the MP (99%) is amplified.
As for 2013, the indicator of administrative lawsuits won by individuals/legal entities in the Courts of First Instance comprised 61.4% (that is close to the number [70%] reported by Dzidziguri), the number of winning cases equalled 44% in the case of the Courts of Appeals and it amounted to 45.9% in the case of the Supreme Court. Herewith, it is worthy of note that if compared to the previous years, the number of disputes resolved in favour of individuals/legal entities in the Courts of First Instance increased in 2013 while the situation remained almost the same as in 2008-2012 in the case of the Courts of Appeals and the Supreme Court of Georgia. In terms of tax disputes the situation is as follows: tax disputes won by individuals in 2012 comprised 21.9% in the Courts of First Instance. This data is similar to that of 2008-2012 and significantly differs from the number (70%) named by the MP. As for the Courts of Appeals and the Supreme Court, tax disputes won by individuals in 2013 equalled 60.6% and 70.1%, respectively. Noteworthy, too, is the fact that these indicators have increased as compared to the same data of the previous years. Therefore, this part of Dzidziguri’s statement is inaccurate.
In order to give a comprehensive picture on the subject, FactCheck reviewed the statistics of the complaints submitted to the Ministry of Finance. It turned out that in the first three quarters of 2013 the number of complaints upheld in favour of the individuals was much larger, however, the same holds true for 2012 and 2011. It is also true that in 2009 and 2010 most of the complaints were not satisfied but the situation improved in the next two years with no significant breakthrough having been observed in this respect in 2013.
Based upon the evidence discussed in the article, we conclude that Zviad Dzidziguri’s statement: “Ninety-nine percent of lawsuits between business and the state were decided in favour of the state. Over the last year, however, 70% of such disputes were resolved in favour of business. Furthermore, currently, at the Council of Appeals at the Ministry of Finance of Georgia more disputes are resolved in favour of business than the government,” is MOSTLY FALSE.
- How many lawsuits between business and the state have been discussed by the Courts of First Instance throughout Georgia from 1 January 2004 to the present day? How many of the disputes were finalised in favour of the state?
- How many lawsuits between business and the state have been discussed by the Tbilisi and Kutaisi Courts of Appeals from 1 January 2004 to the present day? How many of the disputes were finalised in favour of the state?
- How many lawsuits between business and the state have been discussed by the Supreme Court of Georgia from 1 January 2004 to the present day? How many of them were finalised in favour of the state?
Cassation complaints discussed by the Chamber of Administrative Cases of the Supreme Court of Georgia:
The statistics show that in the first three quarters of 2013 the number of complaints sustained in favour of individuals was significantly higher although the same situation was observed in 2012 and 2011. Regardless of the fact that in 2009 and 2010 the majority of the complaints were not satisfied, the situation improved in the next two years and, thus, there has been no significant breakthrough in 2013 in this respect.
Conclusion
Our query revealed that in the courts of all three instances, the number of administrative cases won by the state agencies never exceeded 70.6% throughout the period 2008-2012. The statistics of tax disputes, in particular, is somewhat similar as well. In this case the percentage of the cases won by the state agencies in the Courts of First Instance was quite high; however, it never exceeded 84%. Of note is the fact that the situation has remained rather unchanged in 2013 as well with the index of the last year in this respect equalling 78%. As illustrated by the statistics, the number named by the MP (99%) is amplified.
As for 2013, the indicator of administrative lawsuits won by individuals/legal entities in the Courts of First Instance comprised 61.4% (that is close to the number [70%] reported by Dzidziguri), the number of winning cases equalled 44% in the case of the Courts of Appeals and it amounted to 45.9% in the case of the Supreme Court. Herewith, it is worthy of note that if compared to the previous years, the number of disputes resolved in favour of individuals/legal entities in the Courts of First Instance increased in 2013 while the situation remained almost the same as in 2008-2012 in the case of the Courts of Appeals and the Supreme Court of Georgia. In terms of tax disputes the situation is as follows: tax disputes won by individuals in 2012 comprised 21.9% in the Courts of First Instance. This data is similar to that of 2008-2012 and significantly differs from the number (70%) named by the MP. As for the Courts of Appeals and the Supreme Court, tax disputes won by individuals in 2013 equalled 60.6% and 70.1%, respectively. Noteworthy, too, is the fact that these indicators have increased as compared to the same data of the previous years. Therefore, this part of Dzidziguri’s statement is inaccurate.
In order to give a comprehensive picture on the subject, FactCheck reviewed the statistics of the complaints submitted to the Ministry of Finance. It turned out that in the first three quarters of 2013 the number of complaints upheld in favour of the individuals was much larger, however, the same holds true for 2012 and 2011. It is also true that in 2009 and 2010 most of the complaints were not satisfied but the situation improved in the next two years with no significant breakthrough having been observed in this respect in 2013.
Based upon the evidence discussed in the article, we conclude that Zviad Dzidziguri’s statement: “Ninety-nine percent of lawsuits between business and the state were decided in favour of the state. Over the last year, however, 70% of such disputes were resolved in favour of business. Furthermore, currently, at the Council of Appeals at the Ministry of Finance of Georgia more disputes are resolved in favour of business than the government,” is MOSTLY FALSE.
