Akkord Corporation not paid income tax for two years

Baku. 26 July. REPORT.AZ/ Total assets of Akkord Industry Construction Investment Corporation OJSC made 755,512 mln AZN to early 2016.

Report informs citing the company's financial report, this figure is 7,2% more than analogical figure to 2014 year end.

Over the past year, the corporation's total liabilities increased by 5.3% and made 580.222 mln AZN, while total capital increased by 14.2% and made 175.289 mln AZN.

During the reporting period, the company's main revenue made 39.142 mln AZN, other revenues 56.657 mln AZN, prime cost of construction contracts and sale 26.616 mln AZN, general and administrative expenses 12.383 mln AZN, financial expenses 35.022 mln AZN.

Thus, Akkord completed 2015 year with 21.777 mln AZN net profit. Notably, in 2014, this figure made 19.812 mln AZN. In other words, the company's profit increased by 9,9%. However, the corporation paid income tax to the state budget neither last year nor the previous year. 

In this regard, Report was told in the Akkord that the gains achieved over the past two years have been spent to compensate for losses from previous years. Thus, in accordance with the Art.121.1 of the Tax Code of Azerbaijan, part of expenses exceeding the profit, which is allowed to exclude from the profits of the enterprise, shall be switched to the next period continuing for up to three years, and shall be compensated at the expense of the profits of these years with no limitation on years.Therefore, for the years 2014-2015, the corporation has no income tax liability to the state budget.

The "Akkord Industry Construction Investment Corporation" was established in 2006. Its authorized capital is 74.113 million AZN. This amount has formed on the basis of equity of AZN 4.235 million at par value of 17.5 AZN. 51% of the shares owned by "VIP Estate" LLC, 49% belongs to Derya Musallim Valiyev.