Why has the opinion of the Chamber of Accounts on the draft budget of the State Oil Fund of Azerbaijan (SOFAZ) been delayed?

In the territories of Karabakh liberated from Armenian occupation, the clients of reconstruction and redevelopment projects are various state institutions. Among them are several central executive authorities, such as the State Agency of Azerbaijan Automobile Roads, the State Committee for Urban Planning and Architecture, the State Housing Construction Agency (MIDA), the State Committee for Refugees and Internally Displaced Persons, and others.

The deduction of expenses for food, housing, and representative costs from income has always been a topical issue from a taxation perspective, frequently discussed in relation to the extent of deductions allowed for workers' food and housing expenses and entrepreneurs' representative expenses.

This article examines public participation in budget management during the tenure of Samir Sharifov, who served as Azerbaijan's 5th Minister of Finance throughout a significant portion of the country's post-independence period. By analyzing his 19 years of service, we aim to assess his contributions and the Ministry's approach under his leadership.

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.