Legacy of the Former Finance Minister: A Blueprint for the Successor

Previously, the classification of a taxpayer as high-risk was conducted solely on the initiative of the tax authority without reference to any legislative act, which naturally led to taxpayers’ legitimate grievances. Later, based on the practical experience acquired by the tax authorities in this area, on July 28, 2020, the Cabinet of Ministers adopted the decision to approve the “Criteria for a High-Risk Taxpayer, Including Risky Transactions.”[1] However, this document did not meet expectations regarding the identification of truly high-risk taxpayers, as the criteria determined were too strict in certain respects and, from a practical standpoint, half-baked. In my opinion, a key shortcoming of the decision is evident if one considers its lack of a mechanism for removing a taxpayer from the “black list” of high-risk taxpayers.

The weakest aspect of the Tax Code of the Republic of Azerbaijan is its instability (volatility). The frequent changes in legislation (especially tax and customs regulations) are not only characteristic of the Tax Code but also of all normative legal acts in the country. This hinders taxpayers and entrepreneurs from implementing their plans for the future and negatively impacts the volume of domestic investments and the process of attracting foreign investments. Notably, taxpayers have repeatedly witnessed tax privileges and exemptions being granted without specified durations and subsequently revoked unexpectedly. Among the amendments to the Tax Code that will come into effect on January 1, 2025, there are provisions of this nature.

At the end of each year, alongside the budget package, a special legislative package amending the Tax Code of the Republic of Azerbaijan and other related normative legal acts (laws, Cabinet of Ministers' regulations, etc.) is submitted to the Milli Majlis (National Assembly). This has become a tradition, and 2024 was no exception in this regard[1].

The expanding scope and geography of the negative impacts of global climate change have increased the need for global collective action. This necessity has called for changes not only in the format but also in the content of discussions held annually by the UN since 1995 at the Conference of the Parties (COP). This article is dedicated to one of the main topics of recent COP discussions—carbon credit markets—and the agreement reached at COP29.