ISE 2019-20 Taxes & Taxation

Lecturer: Ulvi Yusifov

Taxpayers, Tax agents, State Tax

Authorities
Rights and Duties
Participants of Tax Relationships

Government (represented by tax authorities)

Taxpayers (Individuals and legal persons)

Tax Agents (Intermediaries between government and

taxpayers)
 TAXPAYER

A person who is
obliged to pay taxes
from the tax objects
referred to in the TCA
 Rights of Taxpayers (Article 15 of TCA) (1)
General rights

• Obtaining any information free of charge regarding the tax legislation

and administrative regulations
• Demand written clarifications from tax authorities regarding the
matters of implementation of tax legislation
• Enjoy tax reliefs where applicable and to which a taxpayer is eligible
• Demand timely refund/ offset of overpaid/ overwithheld taxes
• Participate in tax relationships directly or through an authorized
representative
• Obtain copies of all acts and protocols of tax audits, express their
opinions relating to the accruals and calculations by the tax authorities
• Demand reconciliation files for accrued, re-calculated, paid and
overpaid amounts on account of various taxes and duties
 Rights of Taxpayers (Article 15 of TCA) (2)
General rights (continued)
• Demand from the tax authorities and their
representatives to follow the requirements of the tax
legislation and ensure the confidentiality of the
information comprising tax secret
• Not to follow unlawful instructions and requirements of
the tax authorities
• File administrative or court complaints on the actions or
inactivity of the tax authorities
• Demand compensation for the harm caused as a result of
unlawful actions/ inactivity of the tax authorities and
their representatives
 Rights of Taxpayers (Article 15 of TCA) (3)

Specific rights
• Apply for determination of tax liabilities in
advance
• Apply for a new chronometrage when there is a
change in sales volumes
• Elect to use cash register if carries out an activity
where it is not obligatory and to choose from the
available options an eligible model of cash
register
• Apply for VAT-free sales within tax refund
programs
 Duties of Taxpayers (Article 16 of TCA) (1)
• Payment of taxes envisaged in the legislation (including any
additional accruals)
• Registration and obtaining TIN
• Keeping records of all income and expenses and taxable objects
• Filing tax returns and other mandatory reports in a timely
manner and in established forms
• Carrying out cash transactions in retail sales and public catering
sector using cash registers, provide to customers cash cheques
containing the mandatory information
• Use POS-terminals to process cashless payments by customers
• Provide to customers electronic invoices except in case of special
services
 Duties of Taxpayers (Article 16 of TCA) (2)
• Keep all accounting records and provide to tax
authorities on demand (including granting remote access
when the accounting is run in electronic software)
• Follow lawful demand of tax authorities to eliminate the
discovered violations of the tax legislation and not to
create obstacle to lawful acts of the tax authorities
• Follow the rules on opening bank accounts
• Provide information to tax authorities is special cases
envisaged in tax legislation
• Freeze 105 percent of the accrued amount in the bank
account if the decision of tax authorities is contested at a
court
 State Tax Authorities

State Tax Service under

the Ministry of
Economy and its
subordinated units
Rights of Tax Authorities (Article 23 of TCA) (1)

• Carry out desk and field audits and operative control

measures
• Control all accounting records, documents, books and
reports of the taxpayer
• Request information from the taxpayer in cases and ways
envisaged by the law
• Demand from the taxpayer to eliminate discovered
violations of the tax legislation and not to create obstacle
to lawful acts of the tax authorities
• Review cases involving violations of tax legislation and
calculate taxes, additional amounts, sanctions and
interest on overdue tax debts
Rights of Tax Authorities (Article 23 of TCA) (2)

• Ensure collection of calculated amounts through

various ways including but not limited to
– Orders to banks
– Applications to courts for seizure and auctions
– Applications to courts for limitation of right to
leave the country

• Carry out operational activities within their

authorities envisaged under the law
Duties of Tax Authorities (Article 22 of TCA) (1)

• Control over the compliance with the tax

legislation
• Act in compliance with the legislation
• State control over the accounting
• Protect the rights and lawful interests of taxpayers
• Inform taxpayers on amendments to the laws
• Keep records of collected taxes
• Carry out the state and tax registration of
taxpayers, maintain the state registry of taxpayers
Duties of Tax Authorities (Article 22 of TCA) (2)

• Duly protect the confidentiality of the

information relating to taxpayers that
comprise tax secret and information
relating to private life
• Provide information and reconciliation
files to taxpayers as envisaged by the law
• Act in line with the requirements on
interaction with other state authorities
 Tax Agent

• A person who obliged, in cases envisaged

by the law to withhold from a taxpayer
an amount of tax calculated as per the
Law and transfer it to the state budget
• Tax agent has the same rights as
taxpayers
 Duties of Tax Agent

• Calculate, withhold and transfer taxes

• Keep records of such taxes by each
taxpayer
• File reports on such taxes
• Provide documents and information to
tax authorities for their control