The Tax Code of the Republic of Azerbaijan

Article 56. The expiration of the date for calling to account for violation of tax legislation and application of financial sanctions
56.1. The person can not be called to account for violation of tax legislation and not tax liabilities may arise if the period of 3 years had passed from the date of the tax violation.
56.2. Tax authorities may appeal to court in order to apply financial sanctions not later than within 3 months from the moment of determination the tax violation.
Article 57. Financial sanctions for offenses relating to the failure to submit the reports and other information
57.1. To the taxpayer, who did not submit in timely manner the tax report or note specified under Article 16.2 of this Code without valid reasons, on the basis of the decision of the head (deputy) of the tax authority the financial sanction is applied at the value of 40 manats.
57.2. Against the taxpayer, who has not provided the information stipulated under Article 89.3 of this Code, within timeframes established without any valid reasons, on the basis of the decision of the head (deputy) of the tax authority shall be applied the financial sanction at the amount of 100 manats.
57.3. In respect of the taxpayer, untimely submitting a documents (including information in electronic form), provided for in Article 23.1.2 of this Code, or submitting them in a deliberately distorted way, and without a good reason delaying the terms stipulated in Article 71.4 of this Code, documents or information, shall be applied the financial sanction in the amount of 100 manats.
Article 58.Financial sanctions for decreasing taxes and other tax violations
58.1. If the taxpayer has reduced the amount of tax (including the tax at the sources of payment), specified in the report, compared to the amount, which shall be specified in the report, as well as if he did not submit the report and did evaded from transfer of required amount of tax to the state budget, towards him the financial sanction is applied at the rate of 50 percent of the reduced or evaded tax amounts (except for additional tax amount, calculated as a result of cameral tax audit).
58.2. For non-submission of application on tax registration within the period, specified in Article 33.4 of this Code, or information on location or residence within the period specified in Article 34.3, as well in the event of non-submission of information on changes in other registration documents (requisites, indicated in the application of taxpayer for registration), as well for transportation of passengers and cargoes with automobile transport means without the «Dot Mark», stipulated under Article 221.4.7 of this Code, the penalty is applied against the taxpayer at the amount of 40 manats.
58.3. Should the taxpayer violate the order of writing off funds from the account stipulated under the Civil Code of the Republic of Azerbaijan, from his cash desk, from the date of issuance of the order to the credit organizations or persons carrying out banking operations on payment to the state budget in accordance with procedures stipulated under Article 65 of this Code, and in the absenceof accountswith credit institutionsor personscarrying out bankingoperations -from the date ofexpiry of the periodspecified in the noticeprescribed by Article65.1of this Code - the financial sanctions shall be applied at the size of 50 percent of cost operations.
Whencommittingtaxpayerexpense transactionsin cashfrom itsofficesin violation ofthe Civil Code ofthe Republic of Azerbaijanorderdebitsfrom the accounton the date ofthe creditorganizations or individualsengaged in banking operationsinordertoholdthe state budgetin the manner specifiedin Article 65of this Code,debtsand interest, penalties on taxes,and in the absenceof accountswith credit institutionsor personscarrying out bankingoperations -from the date ofexpiry of the periodspecified in the noticeprescribed by Article65.1of this Code -financial sanctions in theamount of 50 percentof expenditureoperations.
58.4. In the event that taxpayer’s VAT registration was mandatory in accordance with Article 115 hereof, financial sanction amounting to 50 % of the VAT amount to be paid by a taxpayer to the Budget for the whole period when a taxpayer was engaged in a business activity without VAT registration shall apply for the business activity carried out without VAT registration.
58.5. Financial sanction amounting to 100% of the amount of taxes shown on the electronic tax invoice produced to a taxpayer shall apply for submission of electronic tax invoice on VAT, in the event that registration for VAT purposes in accordance with Articles 157 and 158 did not come into effect or was cancelled.
58.6. For payment by the taxpayer referred to in article 175.8 of this Code, the amount of VAT later than on the date of payment of the cost of goods (works and services) in accordance with Article 175.1.3 of this Code, the taxpayer shall be subject to financial sanctions amounting to 50 percent of unpaid VAT.
58.7. For violation of rules of carrying out of cash settlements, thus implementing of cash settlements with population without use of cash registers or accountable forms (without installation of cash registers, in case of lack of accountable forms in the form established by the legislation or without cash payment), with use of cash registers, which have not been registered by tax authorities or not complying with technical requirements, without use of accountable forms established under legislation, or with use of accountable forms, which do not comply with forms approved as appropriate, non-issuance of receipts or other accountable forms to be issued to the buyer, bank statements, to be issued to the customer by the bank departments on currency exchange or issuance with indication of amount lower than paid actually, rules of maintenance of registration of cash operations with population in the event of temporary seizure of use of cash register the financial sanctions shall be applied as follows:
58.7.1. upon a single violation within a calendar year - in the amount of 400 manats, in relation to those provided for in Article 218.1.2 of this Code - in the amount of 2000 manats;
58.7.2. upon a repeated violation within a calendar year - in the amount of 800 manats, in relation to those provided for in Article 218.1.2 of this Code - in the amount of 4000 manats;
58.7.3. for a third or any subsequent violation within a calendar year - 1200 manats, in relation to those provided for in Article 218.1.2 of this Code - in the amount of 6,000 manats.
58.8. For hiding of raw materials, semi-manufactured goods, finished products and other valuables, as well as funds, at the size of more than 1000 manats or their non-registration, the following financial sanctions shall apply to taxpayer:
58.8.1. for the portion exceeding 1000 manats of total amount of these valuables or funds, hidden or unregistered,В?” at the rate of 5 percent;
58.8.2. should such event reoccur during the year, for the portion exceeding 1000 manats of total funds of these valuables and funds hidden or unregistered,В?” at the rate of 10 percent.
58.9. In the event of introduced changes to indicators of control and measurement devices, damaging of seals on process equipment during the period from application of the seal until its removal, as per Article 194.2 of this Code, found deviation in excise marking of products, incomplete registration, in inventory of excise marks, as well as delivery of finished products outside of production area with violation of Article 191.2 of this Code the financial sanctions shall apply to the taxpayer at the amount of 5000 manats.
58.10. For establishing conditions for hiding (reduction) of incomes of natural persons via their involvement by employer to perform any works (services) without entering of the employment contracts into legal force, in accordance with Labor Code of the Republic of Azerbaijan, financial sanction is applied against the employer at the amount of 1000 manats for each such person.
58.11. Against taxpayer the financial sanction shall be applied at the amount of 100 percent of funds paid to his business account (except for correspondent accounts, opened by resident banks in non-resident banks) open for business in non-resident banking institutions and other non-resident credit institutions without obtaining of the duplicate certificate from the tax authority.