The Tax Code of the Republic of Azerbaijan

Article 50-1. Inspection by chronometer method
50-1.1. The purpose of the inspection by chronometer method being a kind of operative tax control is the definition and precise specification of production or sales turnover in the production, storage, trade and other areas (on territories) used for the generation of income by taxpayers or related to the content of the objects of taxation, in cases:
50-1.1.1. if taxable turnover in the taxpayer tax returns compared to the previous reporting period decreased by 30 percent or if the tax authorities have information, the source of which is known, on the disparity of circulating amounts to economic indicators of the taxpayer activity, number of employees, amount of inventory, the selling price and value of assets;
50-1.1.2. if revealing the fact of repeated violation of rules on settlements with the population;
50-1.1.3. if the tax authority received the requirement from the taxpayer to conduct new inspection by chronometer method on the basis of Article 15.1.13 of this Code.
50-1.2. The requirement of the taxpayer in accordance with Article 15.1.13 of this Code on performing new inspection by the chronometer method may be filed by the taxpayer at any time, but no earlier than one month after the last inspection by chronometer method, and the next time not earlier than 2 months after the last observation.
50-1.3. Inspection by chronometer method should not interfere with normal activities of the facility and conducted using the rules provided for in Article 50.3-50.6 of this Code, within a period not exceeding 15 working days.
50-1.4. Prior to the inspection at the site, where should be conducted inspection by chronometer method, the tax authority has the right in order of control to make test purchases of goods (works, services) in order to determine the cost of goods (works, services).
50-1.5. If during the inspection by chronometer method is found that prices applied by taxpayers to the goods (works, services) are greater than 30 percent (in either direction) from the prices generated by the test purchase of goods, the volume of production or sales turnover shall be calculated taking into account the prices generated by test purchases of goods.
50-1.6. The results revealed during the inspection by chronometer method at the end of the working day are recorded by the relevant act. Final results of inspection by chronometer method are summarized based on daily performance as the average daily figure, about which is drawn up the respective act.
Article 51. Inadmissibility of causing the unlawful damage during the tax inspection
51.1. During the tax inspection it is inadmissible to cause any unlawful damage to the taxpayer or property owned, used or operated by him.
51.2. Losses caused as a result of unlawful actions of tax authorities of their officials during the tax inspection shall be compensated to the taxpayer at the complete volume, including the missed profit (missed income).
51.3. Tax authorities and their officials shall be responsible for the damage caused to the taxpayers in the result of unlawful actions, in accordance with existing legislation.
51.4. Losses caused to the taxpayer by the lawful actions of tax authority officials with exception of cases stipulated by legislation shall not be compensated.
Article 52. Financial sanctions procedure for violation of tax legislation
52.1. Upon the decision on attraction of the taxpayer to liability for violation of the tax legislation, relevant tax authority, in accordance with procedures established by the Article 65 of this Code, or via the court shall accept from liable party all financial sanctions in accordance with this Code.
52.2. Claims on acceptance of financial sanctions by tax authorities are considered in accordance with Civil Code of Practice of the Republic of Azerbaijan.
52.3. The execution of the court decision on payment of financial sanctions is implemented in accordance with procedures stipulated under legislation.
Article 52. Consideration of cases in courts and execution of verdicts on application of financial sanctions for violations of tax legislation
52.1. Cases on application of financial sanctions initiated by tax authorities shall be proceed in accordance with Civil Process Code of the Republic of Azerbaijan.
52.2. The execution of court verdict on financial sanctions entered into force shall be provided in accordance with procedures established by the legislation.