Over 9 months of 2005 revenues on property tax decreased as compare 2004 in relation to tax evasion to local budgets of municipalities, Trend reports quoting Akif Musayev, the head of the Central Department for Tax Policy and Strategic Studies under the Taxes Ministry, as saying to journalists on Monday.
According to Musayev, the Ministry does not have exact information on tax revenues to the budgets of the municipalities, but it collects data on paid
taxes.
Different tax collection practices are used in the world. In some countries municipalities are eligible to spend taxes collected in their territories, but control over the tax collection is carried out by tax bodies. The same time government allocates funds to municipalities from the public budget for expenses. In other countries, including Azerbaijan, municipalities carry out tax collection and spending of funds. It is political decision. Efficiency of every system depends on level of development of management institute in municipalities, Musayev stressed.
Municipalities do not have opportunity to conduct audit of tax-payers, functioning in their territories. Nevertheless, they can turn to court in case of non-payment of taxes by tax-payers. Besides, municipalities are authoritative to hold valuation of property in every 3 year to determine possible taxation in their territories.