07.08.2023

Plenum of the Constitutional Court of the Republic of Azerbaijan, chaired by Farhad Abdullayev, held a regular session.

At the court session was examined the constitutional case based on the application of the Baku Court of Appeal on interpretation of Article 197.1.3 of the Tax Code in connection with Articles 3.11, 13.2.17 and 114.2 of that Code

Having heard the report of Judge C.Qaracayev, studied and discussed report of interested party – Baku Court of Appeal and Administrative Office of the Milli Majlis (Parliament); conclusions of specialists – Central Bank, Association of Banks of Azerbaijan, “AccessBank” Closed Joint Stock Company; opinion of expert – Associate Professor, Department of Civil Process and Commercial Law, Faculty of Law, Baku State University, Ph.D. in Law A. Mirzaeva, the Plenum of Constitutional Court of the Republic of Azerbaijan adopted decision.

The decision states that according to the meaning of Articles 13.2.17 and 114.2 of the Tax Code, if the re-auction held on the basis of the request of the mortgagee secured by court order is declared not to have taken place, the property acquired by the mortgage holder and not included in the non-depreciable tangible assets specified in Article 114.2 of that Code, which is the subject of a mortgage, belongs to the object of property tax taxation defined by Article 197.1.3 of this Code.

Taking into account the legal positions reflected in the descriptive-substantiating part of this Decision of the Plenum of the Constitutional Court, to recommend to the Milli Majlis (Parliament) the regulation of the conditions and rules for the application of the property tax in relation to the properties to be expropriated by legislation when the re-auction held on the basis of the legally secured request of the mortgagee enterprise is declared as void, the mortgagee acquired but could not use in entrepreneurial or non-entrepreneurial activities.

The decision comes into force from the date of its publication, is final, and may not be cancelled, changed or officially interpreted by any institution or official.