Fines for fraudulent and intentional bankruptcy will increase for 100 times

Baku. 15 December. REPORT.AZ/ Penalties for fraudulent and intentional bankruptcy to increase in Azerbaijan.

Report informs, newly prepared draft of the Administrative Offences Code declares.

In accordance with the draft, officials will be fined from 1000 manats to 2000 manats, (currently from 55 manats to 70 manats), legal persons from 10 000 manats to 12 000 manats (currently from 110 manats to 200 manats) for fraudulent bankruptcy, namely head, owner of commercial organization or individual entrepreneur deliberately and falsely declares itself insolvent in order to defer payment of the debt to creditors or be granted a delay or achieve the reduction of debt or deceive creditors to avoid payment of debt.

In addition, officials will be fined from 2000 manats to 3000 manats (currently 65 manats to 90 manats), legal persons from 12000 manats to 15000 manats (currently from 160 manats to 240 manats) for intentional bankruptcy, deliberate creation or increase of insolvency by head, owner of commercial organization or individual entrepreneur for benefit of itself or other persons.

Newly prepared Administrative Offences Code is in the form of draft now. If draft to be adopted, the new code will come into force from May 1, 2016. AOC draft was recommended to Milli Majlis plenary session.