Parliament toughens penalty for illegal loan taking
By Nigar Abbasova
The Azerbaijani Parliament considered several changes proposed to the Criminal Code during its regular plenary session on May 6.
MPs took up the issue of toughening penalty for illegal credit taking and violation of its usage principles, as well as for the misuse of public funds. The legislation in effect envisages a penalty in the amount of a double extent of damage or arrest for the term of up to two years for obtaining credit, credit eases, and single purpose interest free government loans by means of false representation of the economic situation or financial state of an organization or individual as well as for the misuse of credit by executives or entrepreneurs. In compliance with the current legislation in case the deed causes major damage the penalty envisages fining in the amount of a triple extent of damage or arrest for the term of from two to five years.
New legislation envisages administering of punishment at the rate of from double to fourfold extent of damage or arrest for the term of up to two years for the former case and from triple to fivefold extent of damage or arrest for the period from two to five years in the latter case respectively.
Parliamentarians also considered the law envisaging the enhancement of maximum amount of a fine for the misuse of public funds or credits obtained under the government guarantee.
In accordance with the proposed amendments delayed submission of the information on the use and return of finances raised by means of government loans or under government guarantee by principal or repeated borrowers (the law is not extended to participants) as well as provision of corrupted details will be counteracted by penalties ranging from the double to fourfold extent of damage (currently in the double extent) or arrest for the period of up to six months. The penalty will range from triple to fivefold extent of damage should the deed cause major damage to the government alongside with the deprivation of right to hold certain positions and to be engaged in specific business for the period of up to three years or arrest for the term of from one to two years.
The parliament also approved the law envisaging the increase of rate of tax payment for land misuse. In accordance with the amendment rate of tax for the lands of agricultural population remains in the same amount of 0.06 manats, penalty for land misuse toughens and reaches the amount of 10 manats for 100 square meters. Tax rate for the lands the intended use of which is not possible due to meliorative or other agro technical reasons also remains the same. Possibility of designated use of lands is determined in accordance with the rules and criteria approved by appropriate government agency. In contrast to the revenues from land tax which are forwarded to the budgets of municipalities, taxes for misuse of lands will be directed to the state budget.
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