AZERBAIJAN ENFORCES TOUGHER TAX LAWS

AZERBAIJAN ENFORCES FINANCIAL COMPLIANCE WITH TOUGHER TAX LAWS

Boosting Transparency and Curbing Tax Evasion in Azerbaijan

Baku, Azerbaijan - In a move to enhance transparency and combat tax evasion, Azerbaijan’s government has introduced stricter financial compliance regulations for businesses operating in the country. The new laws aim to prevent money laundering and ensure that all financial transactions are properly recorded.

Key Provisions of the New Law

Financial institutions must monitor taxpayer activity and submit reports on all financial transactions to the relevant authorities by the 10th day of each month.
Taxpayers who fail to conduct certain operations cashless will face financial sanctions, including leasing providers and loan issuers, insurance companies, state authorities, and public entities. The maximum penalty for non-compliance is up to AZN 30,000 per calendar month for VAT-registered taxpayers and those engaged in trade and/or public catering services.
Other taxpayers who fail to conduct cashless transactions will face penalties of up to AZN 15,000 per calendar month.

Measures to Tackle “Risky” Taxpayers

The government has also introduced measures to tackle “risky” taxpayers who engage in non-commodity transactions, such as those that generate profit without providing goods or services. Under the new law, tax authorities have the right to perform extraordinary audits and extend the period for refunding overpaid taxes.

Experts’ Views on the New Laws

Experts say the new laws are aimed at boosting transparency and preventing tax evasion, but also acknowledge that they may be complex and challenging for businesses to comply with. “The new laws require financial institutions and taxpayers to be more transparent and compliant,” said a tax expert. “While this is a positive move, it will undoubtedly require significant changes in the way businesses operate.”

Azerbaijan’s Efforts to Boost Transparency and Accountability

Azerbaijan’s government has emphasized the importance of financial compliance in preventing corruption and money laundering. The new laws are part of a broader effort to boost transparency and accountability in the country’s economy.

In related news, Azerbaijan has also signed agreements with several foreign countries to exchange tax information and cooperate on anti-money laundering efforts. The government says these agreements will help to strengthen its financial regulatory framework and prevent illicit financial flows.