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Does the previous property owner's tax debt transfer to the new owner?
An apartment has been in my ownership for one year, and property tax has been imposed on it. However, I have also been charged the previous owner's unpaid property tax and the accrued interest. Am I obliged to pay this amount? I kindly request clarification on this matter.
The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 197.1.1 of the Tax Code, buildings or parts thereof owned privately by resident and non-resident individuals and located within the territory of the Republic of Azerbaijan are considered taxable objects for property tax purposes.
In accordance with Articles 200.4 and 200.5 of the same Code, municipalities must electronically deliver payment notices to taxpayers no later than August 1. The property tax amount for the current year is payable in equal instalments by August 15 and November 15 of that year.
Where property tax has not been paid by the previous owner, the tax must be paid by the owner of the property within the payment deadlines established by this Article.
According to Article 85.4 of the Tax Code, tax authorities are entitled to assess or reassess a taxpayer's taxes, interest and financial sanctions within 3 years after the end of the taxable reporting period. They are also entitled to collect the assessed (reassessed) amounts of taxes, interest and financial sanctions within 5 years after the end of the relevant taxable reporting period.
Based on the above, if property tax was not paid on time by the previous owner, tax authorities are entitled to assess or reassess the property tax and interest within 3 years after the end of the taxable reporting period, and to collect the assessed (reassessed) amounts of tax and interest from the new owner of the property within 5 years after the end of that reporting period.
Legal basis: Articles 85, 197.1.1, 200.4 and 200.5 of the Tax Code.
An apartment has been in my ownership for one year, and property tax has been imposed on it. However, I have also been charged the previous owner's unpaid property tax and the accrued interest. Am I obliged to pay this amount? I kindly request clarification on this matter.
The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 197.1.1 of the Tax Code, buildings or parts thereof owned privately by resident and non-resident individuals and located within the territory of the Republic of Azerbaijan are considered taxable objects for property tax purposes.
In accordance with Articles 200.4 and 200.5 of the same Code, municipalities must electronically deliver payment notices to taxpayers no later than August 1. The property tax amount for the current year is payable in equal instalments by August 15 and November 15 of that year.
Where property tax has not been paid by the previous owner, the tax must be paid by the owner of the property within the payment deadlines established by this Article.
According to Article 85.4 of the Tax Code, tax authorities are entitled to assess or reassess a taxpayer's taxes, interest and financial sanctions within 3 years after the end of the taxable reporting period. They are also entitled to collect the assessed (reassessed) amounts of taxes, interest and financial sanctions within 5 years after the end of the relevant taxable reporting period.
Based on the above, if property tax was not paid on time by the previous owner, tax authorities are entitled to assess or reassess the property tax and interest within 3 years after the end of the taxable reporting period, and to collect the assessed (reassessed) amounts of tax and interest from the new owner of the property within 5 years after the end of that reporting period.
Legal basis: Articles 85, 197.1.1, 200.4 and 200.5 of the Tax Code.