Tax amnesty to concern 45,000 taxpayers - UPDATED
“The tax debts are divided into two parts. First - writing off the interests calculated due to the unpaid taxes. Second – writing off the financial sanctions. Firstly, I’s like note that it’s offered to write off calculated interests as of January 1, 2017. Depending on the structure of financial sanctions, the financial sanctions provided in the article #58.7 of the Tax Code, which are considered for violation of rules on cash operations, are planned to be written off regardless amount. At the same time, the financial sanctions provided in the article #58 and other articles of the Tax Code are planned to be written off in a certain succession”.
Shirinov added that the draft law will concern 44,704 taxpayers, of which 1,037 are in state sector, 43,667 in non-state sector: “By writing off the interests, totally AZN 386.4 million will be written off. Of this, AZN 125.5 million belongs to state sector, AZN 260.9 million to non-state sector. At the same time, AZN 3 million of financial sanctions of 6,304 taxpayers on violation of rules on cash operations is planned to be written off as of January 1, 2017. Regarding writing off other financial sanctions, by writing off financial sanctions which are adequate to their payments in January, February and March, AZN 234 million of 13,780 taxpayers will be written off. So, this draft law will write off AZN 624 million of 44,704 taxpayers. We think this will serve increase of economic activity of the taxpayers. Moreover, by writing off the interest amounts, AZN 288.3 million will be written off in Baku, AZN 98 million in the regions. Regarding financial sanctions, AZN 138.5 million will be written off in Baku, AZN 98.5 million in the regions”.
Among the 7 large taxpayers, Azersu’s has interest debt of AZN 20.8 million and financial sanction of AZN 2 million.
As of December 1, 2016, total tax debts of taxpayers make up AZN 1,527,000,000, of which AZN 904.3 million is main tax debt, AZN 237.1 million financial sanctions, AZN 386.4 million interest debts. If the draft law is adopted, the tax payers’ debt will decline to AZN 904 million.
Today, the draft law on “Regulation of tax debts of taxpayers as of January 1, 2017“ has been discussed at the Standing Commission on Economic Policy, Industry and Entrepreneurship of Azerbaijani Parliament.
Chairman of the Committee Ziyad Samadzade said the document, prepared with the initiative of the President Ilham Aliyev, aims to stimulate development of business, create a favourable business environment and optimize tax burden.
According to the article #1 of the draft law, debts of taxpayers as of January 1, 2017 generated from the interests accounted due to not paying the taxes in the provided period will be written off by the relevant state executive bodies.
According to the draft law, debts of taxpayers as of January 1, 2017 incurred on financial sanctions imposed in accordance with the article $58.7 of the Tax Code will be written off by the relevant executive body.
If the taxpayers pay 30% of financial sanctions in January 2017, the relevant executive body writes off 70% of unpaid financial sanctions.
If the taxpayers pay 50% of financial sanctions in January-February 2017, the relevant executive body writes off 50% of unpaid financial sanctions.
If the taxpayers pay 70% of financial sanctions in January-March 2017, the relevant executive body writes off 30% of unpaid financial sanctions
The provisions of this draft law concern the unpaid parts of tax of the taxpayers which there is a court decision on mandatory payment of the taxes provided in accordance with the articles #1, 2 of this draft law but remained unpaid since January 1, 2017.
If the parliament adopts the draft law, it will enter into force on January 1, 2017.
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