Court Rules in Favour of Centre for Humanitarian Programmes, Lifts Tax Freeze
SUKHUM / AQW’A — The Cassation Panel of the Arbitration Court of the Republic of Abkhazia ruled yesterday in favour of the Centre for Humanitarian Programmes (CHP), overturning a tax authority decision that had frozen the organisation's bank accounts. The three-judge panel found that the Ministry of Taxes and Duties (MTD) acted unlawfully in its demand for employee contracts and other documents from the charity, which provides essential legal and material support to people in Abkhazia.
The ruling comes after CHP’s accounts were blocked by the tax authorities on 15 April 2024, just two weeks after an official tax inspection found no evidence of wrongdoing by the organisation. This sudden freeze, cited on grounds of “tax evasion,” was contested by CHP members as baseless and unjustified, sparking a months-long legal struggle.
In the initial court ruling on 7 August 2024, some of CHP's complaints were upheld, deeming certain actions by the MTD illegal. However, the court declined to invalidate MTD’s demands for the organisation’s employee contracts, including documents related to CHP staff member Said Gezerdaa, who was also under a separate inquiry by the Gudauta Tax Inspectorate. Gezerdaa had already provided all requested documentation, yet the Sukhum Tax Inspectorate upheld the suspension of CHP’s account transactions.
The Centre for Humanitarian Programmes (CHP) is a non-profit charitable organisation in Abkhazia. Established in 1994, following the end of the Georgian-Abkhazian war of 1992-93, CHP has worked for over 25 years to promote the development of Abkhazia as an independent, lawful, and democratic state. To foster an environment in Abkhazia where human rights are respected, and the fundamental principles and values of democracy, enshrined in the Constitution of the Republic of Abkhazia, are understood and embraced, CHP carries out its work across various fields.
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After hearing arguments from both sides, the Cassation Panel, led by presiding judge Zaur Agumaa with judges Kama Dzhinzholia and Aksida Dzhenia, retired to deliberate. Approximately an hour later, Judge Agumaa announced the panel’s decision, stating, “The application of the NGO 'CHP' is granted.” He declared that MTD’s 8 April 2024 demand for employee contracts and records from 2021 to 2023 was in violation of the Republic of Abkhazia’s tax regulations. The court also annulled the Sukhum Tax Inspectorate’s decision to suspend CHP’s account operations, deeming it unlawful.
Judge Agumaa ordered that the decision be enforced immediately, with the ruling effective from the issuance date of the full written judgment. Parties have nine months to appeal to a higher court, though Judge Agumaa noted that the decision was reached with a dissenting opinion from Judge Aksida Dzhenia. The detailed written judgment will be provided to the parties within ten working days.
This ruling marks a pivotal moment for CHP, an organisation that has worked under challenging circumstances to support Abkhazian citizens. The court’s decision underscores the ongoing tension between humanitarian organisations and regulatory bodies in Abkhazia, as CHP continues to advocate for its operational freedom amid increased scrutiny.