AZE.US
People in Azerbaijan may unknowingly have businesses registered in their names and later face substantial tax debts or even criminal liability, a legal expert has warned.
Samad Vakilov, head of the Müvəkkil Legal Center, told Demokrat.az that schemes involving the misuse of powers of attorney and personal identification tools have become increasingly common in recent years.
According to Vakilov, perpetrators obtain a taxpayer identification number, known in Azerbaijan as a VÖEN, in another person’s name through a power of attorney. They then conduct business under that person’s identity, accumulating large tax liabilities in the registered owner’s name.
“As a result, substantial tax debts are created in these people’s names, potentially exposing them to criminal prosecution,” Vakilov said. “Unfortunately, this type of crime has become widespread.”
He explained that the initial procedure may appear formally legal. A person appoints a representative for civil matters, and that representative uses the authority granted under the power of attorney to register a VÖEN in the person’s name.
In practice, however, the individual whose name is used may not fully understand the process or know what business activities are being conducted on their behalf.
Vakilov said such cases may contain elements of fraud even when the underlying documents and registration procedures appear lawful.
He argued that investigators must identify who actually controlled the business, used another person’s identity and benefited from the activity instead of automatically treating the registered VÖEN holder as the offender.
“Responsibility should fall not on the person who formally appears to have participated in the offense, but on the individual who took control of someone else’s property, obtained a VÖEN in another person’s name using ASAN Imza, conducted business and caused harm,” Vakilov said.
The warning highlights the risks of granting broad powers of attorney or allowing others access to ASAN Imza, Azerbaijan’s digital signature and authentication system.
Citizens should carefully review any power of attorney before signing it, avoid sharing access to ASAN Imza and regularly check whether unknown businesses or tax obligations have been registered in their names.
Vakilov characterized the problem as widespread, but the report did not cite official figures on the number of affected individuals or the total value of the debts involved.
AZE.US