The procedure for determining the taxpayer’s ability to pay the tax debt is approved.
Oku.Az reports that Prime Minister Ali Asadov signed a decision on this matter.
According to the rule, the average monthly income and expenses of the taxpayer are determined by the tax authority as follows:
– the amounts reflected as total income and total expenses (excluding depreciation expenses) in the income tax (profit) return filed by the income tax (profit) taxpayer in accordance with the accounting method chosen for the previous year and submitted by a tax chamber audit at 12 (taxes average monthly income and expenses are determined by dividing the payer by the number of months in which he was active in the previous reporting year if he was not fully active;
– according to the simplified tax return submitted by the simplified taxpayer for the previous quarter and which was audited by the tax chamber, the amount of production obtained by the goods (works, services) provided, including income not related to sales, and the costs determined on the basis of the cost 3 documents submitted by the taxpayer 3 Average monthly income and expenses are determined by dividing by (the number of months the taxpayer was active in the previous reporting quarter if he was not fully active);
– the average monthly income and expenses of the taxpayer who started a new activity in the reporting period to the actual activity indicators (by compiling the reference reflecting the actual activity indicators at the taxpayer’s request in the form of a relevant declaration (income, profit or simplified tax return) and submitted by the taxpayer for the simplified taxpayer) must be submitted by attaching expense documents) based on the calculation and dividing by the number of months of operation, the average monthly income and expenses are determined;
– in order to clarify the accuracy of income and expenses of a taxpayer who has started a new activity in the reporting period, and expenses of a simplified taxpayer, based on the information sources of the tax authority (electronic invoice, electronic purchase order, cash register check control, funds in bank accounts, including the movement of funds in bank accounts and official data on import and export operations, etc.).
If the tax authority has information about the taxpayer’s expenses, documents related to those expenses are not required from the taxpayer.
Until the taxpayer’s income, profit and/or simplified tax return for the previous reporting period is subjected to a chamber tax audit or until the deadline established by the Tax Code for conducting a chamber tax audit has elapsed, while at the same time the taxpayer is required to submit the relevant returns; when he/she submits it before the filing of the returns, the tax authority makes a decision to refuse the extension of the period for fulfilling the tax obligation and the taxpayer is informed to submit the application again after the resolution of such cases.
After deducting the average monthly expenses from the average monthly income, the balance of funds in the taxpayer’s treasury, current accounts or other accounts in national or foreign currency (reduced by the positive difference between the average monthly income and the average monthly expenses) is determined by the tax authority as of the date of application. Free funds are determined for debt repayment purposes.
If, based on the documents submitted in accordance with the Tax Code, it is determined that the taxpayer incurred expenses that are not related to entrepreneurial activity, as well as expenses that are not deductible from income in accordance with the Tax Code, the amount of free funds increases proportionally.
If the taxpayer’s tax liability exceeds 1.3 times the free funds determined in accordance with paragraphs 2.4 and 2.5 of these Regulations, this case is considered as the taxpayer’s inability to pay the tax debt in one go, and the deadline for fulfilling the tax liability is determined by the decision of the tax authority at the discretion of the taxpayer according to the procedure specified in Articles 85.10.1-85.10.3 of the Tax Code.
Notwithstanding any other provisions of these Regulations, the restoration and reconstruction of territories liberated from occupation at the expense of funds allocated from the state budget and state extra-budgetary funds, as well as the design, construction, operation, restoration, repair and reconstruction of roads, bridges, tunnels and other road facilities of the Republic of Azerbaijan shall be carried out under the provisions of this Regulation. In case of VAT debt due to advances paid to a public legal entity carrying out work in this field within the framework of its projects, public legal entities subordinate to it, organizations (departments) that do not have the status of a legal entity, their business companies, branches and representative offices, in this case the taxpayer shall be required to pay the tax debt in a single amount and shall be assessed as insufficient capacity.
