Tax Ministry Plans to Introduce New Tools for Identification of Tax Liabilities

The Ministry of Taxes of Azerbaijan is planning to introduce new tools for the identification of tax liabilities. So it is working to change the law, said the ministry.

One of the innovations is the early detection of tax liabilities for taxpayers (Advance Tax Ruling).

According to this system, based on the taxpayer's application, the tax authorities are to provide information on possible tax liabilities.

Another innovation is the use of planned public control over people evading taxes.

‘It is planned to award individuals who inform the tax authorities about the people who evade paying taxes. Such a system, Whistle Blow, is widely used in world practice. Under this system, a method is also used to identify such facts through media publications,’ the Ministry of Taxes said.

In addition, the Ministry of Taxes intends to establish a system of voluntary recognition of errors. ‘The system provides for voluntary recognition of taxpayer errors that were not detected during the tax audit. Voluntary recognition of tax payments will release the taxpayer from financial sanctions in relation to it,’ the report says.

In addition, it is planned to make changes in tax legislation on the rules of desk audits. Thus, in the case of failure to conduct desk audit within 30 days after the entrepreneur has submitted the tax return, the tax authority loses the right to conduct such an audit at this taxpayer. ---72D