The fulfillment of tax obligations is the payment of tax amounts due in the specified period and in the specified manner. In this article, it arises in case of non-fulfillment of obligations tax dept and we will talk about its reasons.
According to Article 11 of the Tax Code, a tax is an individual, gratuitous and mandatory payment transferred to the state budget or local budgets in the form of expropriation of money owned by taxpayers for the purpose of ensuring the activities of the state or municipalities. From the moment the state was created, tax is an important link of economic relations in society. The existence of taxes is related to primary consumption. Article 16 of the Tax Code is about the duties of the taxpayer. According to this article, it is one of the taxpayer's duties to pay taxes determined by law, as well as financial sanctions, accrued interest and other mandatory payments imposed in accordance with the Tax Code. This duty is also a constitutional duty of the taxpayer.
In accordance with Article 73 of the Constitution of AR, it is everyone's duty to pay taxes and other state payments on time and in full. No person shall be liable to pay the following taxes:
- Having the characteristics of taxes defined by the Tax Code
- Not defined by the Tax Code
- Defined differently from the rules defined by the Tax Code
What is a tax liability and when is it formed?
Tax liability means the tax payer Tax Code the obligation to pay the tax in the cases and in the manner determined by The taxpayer is responsible for the fulfillment of tax obligations from the moment the conditions for payment of tax arise in accordance with the requirements of the legislation. The fulfillment of tax obligations is the payment of the tax amount to be paid in the specified period and in the specified manner. Fulfillment of obligations is mandatory, regardless of whether the taxpayer has funds in his cash register or accounts, as well as his property.
If the taxpayer does not fulfill the tax obligation within the period specified by the law, the tax authority sends a notification to the taxpayer about the payment of taxes calculated or recalculated in accordance with the Tax Code, applied financial sanctions and interest within 5 days.
In the following cases, the tax authority issues an order with an executive document to the person conducting bank operations or the credit institution on the receipt of debts for taxes, financial sanctions and interest from the current or other accounts of the taxpayer in national or foreign currency to the state budget:
- if the calculated and declared taxes are not paid within the stipulated period;
- if a complaint is not filed with the court or the body determined by the executive authority within 30 days from the date of receipt of the taxpayer's notification;
- if there is a decision of the court or a decision of the body determined by the relevant executive authority, in accordance with that decision;
- with the written consent of the taxpayer.
With the exception of the first and fourth cases, in other cases, the tax authority may freeze the amount of 105 percent of the debt amount in the current or other accounts of the taxpayer in foreign or national currency for taxes, financial sanctions or interest imposed by the tax authority. issue an order with an executive document to the person conducting credit institutions or bank transactions. At this time, bank credit organizations or persons conducting bank operations execute payment orders of the taxpayer, which provide for the withdrawal of funds from the account in excess of the funds frozen in the bank accounts.
What happens when a tax liability is not met?
If the tax or current tax payment is not paid within the specified period, for each additional day after the due date, either the tax agent or the taxpayer is charged interest at the rate of 0.1 percent of the current tax payment or unpaid tax amount, this interest is for the entire additional period due to tax payments, but it is applied under the condition that it does not exceed one year. This amount of interest is applied to the tax not paid on time from the day the tax amount is calculated to the taxpayer. Property can be listed as a way to ensure payment of tax debt if the taxpayer fails to fulfill the tax obligation within the specified period. Listing the property is a limitation of the taxpayer's rights. At that time, he does not have the right to dispose of the listed property or any part of it. Ownership and use of real estate is carried out under the control of the tax authority. Property listing is carried out in the following order, taking into account Article 89.5 of the Tax Code:
- cash;
- property that is not directly involved in the production of products (currency valuables, securities, passenger cars, non-production buildings, room design items, etc.);
- finished products, as well as any other material valuables that are not intended to participate in the production process;
- materials and raw materials intended for participation in production, as well as machines, buildings, devices, equipment, devices and other fixed assets;
- other property by conducting an inventory.
If the taxpayer refuses to fulfill the duty of tax liability, he may be requested to pay the tax liability immediately by sending a written notification to him.
Orders of tax authorities on tax debts, financial sanctions and receipt of fees to the state budget are executed by banks and other credit organizations in accordance with the sequence of payments provided by the AR Civil Code.
How is tax liability paid?
If the foreign currency funds in the bank account are not converted by the taxpayer within 10 working days from the date of receipt of the order of the tax authority, the order is executed by converting the frozen funds in foreign currency at the exchange rate announced by the Central Bank of the Republic of Azerbaijan on the next working day. If a new tax order is sent within 10 banking days, if the amount of tax debt indicated in that order has decreased in relation to the previous order, 10 banking days are calculated from the date of the previous order. If the amount of the debt has increased due to the previous order of the tax authority, the period of 10 bank days is calculated from the date of that order for the tax debt indicated in the previous order, and for the increased amount of tax debt from the date of the entry of the new order.
Tax authority tax debts, if the order regarding the receipt of financial sanctions and interest to the state budget is issued to several banks or credit organizations, and if tax debts, interest and financial sanctions are received or frozen from the taxpayer's current or other accounts to the state budget, the tax authority shall transfer to other banks or ensures immediate repayment of orders given to credit institutions.
Until the order of the tax authority is returned, persons or credit institutions conducting banking operations shall suspend the execution of the order on these funds by freezing the taxpayer's funds in the account in the amount of that amount paid on the basis of a document confirming the receipt (payment) of tax debts, financial sanctions and interest to the state budget.
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