12:26 - 6.09.2024

---

September 6, Fineko/abc.az. The Procedure for determining taxpayer's ability to repay tax debts has been approved.

ABC.AZ reports that Cabinet Ministers’  relevant resolution from September 3, 2024 approved the Procedure for determining the ability of a taxpayer to repay tax debts.

The rules define a mechanism that, while pursuing a stimulating goal in the economy, involves mainly improving the financial situation of taxpayers and stimulating competitive entrepreneurship. In practice, a number of taxpayer debtors are unable to repay debt obligations arising due to financial difficulties in a timely manner.

While they are granted a deferral for a certain period of time, this supports their fulfillment of tax obligations. It is in connection with such circumstances that the tax legislation contains provisions providing for the extension of the repayment period of its debt within certain requirements, taking into account the current financial condition of the taxpayer.

Thus, Article 85.6 of the Tax Code establishes the circumstances that served as the basis for extending the repayment period of the debt, one of which is the inability of the taxpayer to repay the tax debt at one time. To do this, when considering the above-mentioned appeals, the tax authority, first of all, should be able to accurately determine whether the debtor has solvency.

It is for this reason that it became necessary to approve a single mechanism for using this opportunity provided by law for debtors experiencing real financial difficulties, as well as to prevent abuses in this area.

The relevant resolution of the Cabinet will regulate this process.