The term related to the fulfillment of the tax obligation is determined by the Ministry of Taxes of the Republic of Azerbaijan according to the Code of the Republic of Azerbaijan and "Conditions and rules for extending the tax liability fulfillment period"is extended by complying with the requirements of
Cases of changing the period related to the fulfillment of tax liability
It is possible to change this period to a period later than the period determined by the AR Tax Code in the following cases:
In case of damage to the taxpayer as a result of a natural disaster or any other force majeure. In this case, interest is not calculated on the extended payment period during the extended period.
At this time, the taxpayer must submit the following documents:
- reasoned request for extension of time;
- reference of the relevant body about the occurrence of the incident;
- reference of the relevant authority regarding the amount of damage caused as a result of the incident.
When the taxpayer is in danger of becoming bankrupt while paying the tax in one lump sum. In this case, interest is charged at the rate of 0.01 percent for each day on the extended payment period during the extended period.
At this time, the taxpayer must submit the following documents:
- reasoned request for extension of the term;
- reference of relevant authorities on the balance of funds in the cash register, currency, settlement, deposit and other accounts of the taxpayer as of the date of application;
- creditor's and debtor's statement with name and TIN of creditors and debtors.
It is possible to extend this period from 1 month to 9 months during the tax year if there are the mentioned grounds.
When a criminal case is filed against the taxpayer for violation of the tax legislation, the extension of the time for fulfilling the tax obligation is inadmissible.
The process of extending the tax liability fulfillment period
In order to extend the period for fulfilling the tax obligation, documents confirming the existence of an appropriate guarantee or pledge must be submitted to the tax authority by the taxpayer. The application must be submitted by the payment period specified in the legislation for their reporting period for the type of tax.
The tax authority considers the taxpayer's application within 30 days. If the application is considered justified, a decision is made in accordance with the form approved by the Ministry of Taxes of the Republic of Azerbaijan on the extension of the period for the fulfillment of tax obligations in accordance with the Tax Code of the Republic of Azerbaijan and these Regulations.
A pledge agreement is signed between the taxpayer and the tax authority when the applicant taxpayer gives a pledge for the fulfillment of this obligation. Pledge relations are regulated in accordance with AR law "On Pledge".
When there is a need to determine the value of the pledged property, this value is determined in accordance with the AR Law "On Valuation Activities".
The invalidation of the pledge agreement does not cancel the tax liability of the taxpayer. The costs of registration of the mortgage agreement are paid by the taxpayer.
In the decision on extension of the term, notes should be made about the type of tax for which the payment period has been extended, the payment period for the tax debt, the amount, the method of payment, the calculated interest, as well as the guarantee or pledge. The decision to extend the term comes into force during the period specified in the decision.
Cases of premature termination of the extended period of tax liability fulfillment
The extended period for the fulfillment of the tax liability may be prematurely terminated in the following cases:
- when the taxpayer fulfills the tax obligation ahead of time;
- when a criminal case is filed against the taxpayer in connection with the violation of the tax legislation;
- if the conditions of the decision on the extension of the tax liability fulfillment period are not followed.
When a criminal case is filed against a taxpayer for violation of the tax legislation and the conditions of the decision on extending the period for fulfilling the tax obligation are not followed, the tax authority that decided on the premature termination of the extended period must inform the taxpayer about this within 5 days. The taxpayer must pay the amount owed and the interest calculated on that amount within 30 days from the time of receiving the information.
Note: The taxpayer has the right to complain about the action or inaction of the tax authority, as well as their officials, regarding the premature termination of the extended period of tax liability fulfillment.
Macis Consulting as a company, we provide a number of services to business owners who want to operate both as an individual entrepreneur and as a legal entity. Our company has been providing its business partners with both forms of business creation, accounting services, audit and legal process services for years. Contact us get all the accounting, financial and legal services your business needs.
SEE ALSO: The procedure for withholding tax at the expense of the taxpayer's property
