Audit Chamber Reveals Shortcomings in AZAL

The Audit Chamber revealed the results of a joint inspection with the Ministry of Taxes in the CJSC Azerbaijan Airlines. The checks cover the years 2011-2013 for revenue accrual and payment to the state budget, as well as the use of state property.

The audit found that while supplying jet fuel to airlines who are residents of Azerbaijan tax treatment was violated and the amount of tax on profits was underestimated.

Fuel sold to legal persons - residents of Azerbaijan was not brought to the value added tax. The obligation on VAT, etc. was not fulfilled in several purchases.

The Accounts Chamber does not report on the tax evasion amount. However, they also revealed grave violations of accounting, conservation and use of state property in AZAL.

AZAL failed to comply with financial discipline. It is a collection of accounts receivable and registration of cash receipts on foreign missions. Moreover, it revealed that AZAL did not formalize the basis for determining the types of additional tariff of fees and the sizes of their calculation for international passenger traffic.

They detected deviations of statistical reports and the size of the authorized capital in the various documents.

From the short message of the Accounting Chamber it can be found out that some of the shortcomings in AZAL were corrected during the audit. Instructions were also given to address the remaining shortcomings and bring to justice officials.

The report was prepared pursuant to the requirements of the National Plan of measures for the promotion of open government in 2016-2018.    ----- 08D