Penalties for Employers under Criminal Code Toughened

The Azerbaijan President made a number of changes to the Criminal Code.

The amendments are mainly related to economic crimes, on which hundreds of entrepreneurs have been deprived of their freedom. From now on, the amount of the fine is not fixed and is commensurate to the harm caused. This, for example, concerns the intentional use of another's trade mark (in the previous edition the penalty was equal to 1,000 - 5,000 manats, and now it is from two to four times the amount of the damage.

In addition, while in the previous version economic actors, who caused damage at a rate of 1 to 7 thousand manats, were subject to criminal liability, now they will be prosecuted under the Criminal Code for the damage from 20,000 to 100,000 manats.

The kaleidoscope of such crimes is diverse and includes illegal business, false entrepreneurship and knowingly criminal acquisition of money or other property, its possession, use and disposal, illegal acquisition, including misuse, of credits by the head of an organization or an individual entrepreneur.

It also includes violation of rules for use of public debts or debts obtained under the state guarantees, the illegal organization and holding of lotteries and sports betting, deliberate evasion of repayment of debt, illegal use of a trademark, knowingly false advertising, illegal food products with GMO, foul issue of securities, manufacturing, purchase or sale of counterfeit money or securities, manufacturing, purchase or sale of counterfeit excise stamps, misconduct in bankruptcy, deliberate or false bankruptcy.

By the way, if in the previous edition of the Criminal Code violation of the securities issue rules entailed a fine of from 100 to 500 manats, and for more significant offenses in this area - public works from 300 to 400 hours, or correctional labor for up to 1 year, now this "bouquet" has added imprisonment for up to 1 year.

Punishment awaits those who evade customs payments in significant amount (if earlier the penalties were from 1,000 to 2,000 manats or correctional labor for up to 1 year, now the violators can be imprisoned for up to 1 year and a fine will be charged in two-four-fold the amount of the damage).

The legislation of Azerbaijan under a significant amount means an amount exceeding two thousand manats, and large amount means more than four thousand manats.Due to the changes in the Criminal Code, a significant amount is considered to be 20,000 to 100,000 AZN, and a large amount is more than 100,000 AZN.

There is also a penalty for those who evade taxes and contributions for compulsory social insurance in a large amount, with a changing amount of the fine. The traditional correctional labor for up to two years and the imprisonment for up to 3 years have been preserved. The fine of 1,000 to 2,000 manats has changed to a fine of two to four times the amount of the damage. --17D-