The Georgia Revenue Service (GRS) has introduced an innovative service - District Tax Officer’s Service. This is a client-oriented innovation providing the taxpayers with all necessary information and services.

The objective of the GRS is to develop a system orientated on the taxpayer’s needs assessment, which is a complex process, including the increased level of access to the proper services. Target groups are small and medium enterprises (SME).

This innovation is a progressive action for the GRS to achieve its goals. In particular, unlike in the previous years, the GRS acts as an advisor to help and encourage taxpayers. The strategic objective of the tax administration is to promote voluntary compliance with tax liabilities. The GRS must be focused on providing assistance services and information to taxpayers.

The district tax officers system has many advantages, as it is a way to offer a better service, better paying conditions and to facilitate co-operative relations with tax administration. On the one hand, it gives a possibility to discover interests and problem areas and, on the other hand, it stands for liberal principles and protects taxpayers’ rights.

Previously there was a system, which was not able to satisfy the taxpayers’ needs. It was not working efficiently. If before the emphasis was made only on control actions and the GRS used to play a negative character, at present the types of relations are in the proactive process as the tax administration does its best to change things for the better.

The reality that existed before, as we said, was not corresponding to consumers’ interests and many of them were discontented. Call centres, which had to carry out the function of assessment, could not respond to new challenges. This type of communication could not simplify the contact process, as it was not easy to put the question clearly and to give answers briefly, unambiguously and effectively. Contemporary, the reality gives a possibility to learn the problem rigorously and the district officer appears as a consultant to the interested individual.

The proactive process of assisting the taxpayers can be specified within the new approach of the tax administration, which underlines the visiting process of the officers directly to the taxpayers’ offices. The aim of the GRS is to assist and support the taxpayers when needed. The district tax officer provides SMEs with all necessary information regarding implemented/upcoming changes to tax system, tax legislation, and projects/programs. Besides, officer must advise them in vague conditions and reply to their questions.

Furthermore, the district tax officer, who has a defined geographical area of action, uses the public transport, walks along the streets, so every interested taxpayer can communicate with them, and ask the questions about the issues they are interested in. They have an obligation to help and inform every taxpayer. Herewith, all small and medium enterprisers from defined area can call their district officer at any time and an require explanation over taxation related issues.

Particular attention should be paid to the fact, that the district tax officers are not authorised to impose any kind of sanctions. District tax officers’ institute is dedicated to preventing tax violation. When detected non-registered business, officers notify owners about consequent complications, caused by non-compliance. After being notified by the officer, taxpayer can register its business within two days. Besides, the tax officers are equipped with computer tabs, with multiple functions, including online business registration, access to the Revenue Service's database and business mapping. This is an additional comfort to taxpayers, since they do not need to visit the tax service centres themselves. The new approach has a two-fold function: on the one hand, it provides a comfort for taxpayers and, on the other hand, provides better regulated, more informative and flexible system.

The district tax officers are experienced employees who went through trainings and dedicated workshops. They are communicative individuals and have good abilities to relate to people. This means that they are well-skilled people who can help taxpayers in solving problems related to tax compliance.

Since August 2011, 200 tax officers are involved in the district tax officers campaign, of which 80 of them work in Tbilisi, and others - in Batumi and in Kutaisi. The GRS plans to cover the whole country in 2012.

The GRS intends to promote a new approach based on co-operative relations with taxpayers. This approach particularly is a client-oriented approach, which facilitates creation of more attractive and sustainable business environment for business sector.