Logical continuation of reforms in the tax system makes improvement of administration and transformation of organizational structure inevitable, Azerbaijani Minister of Taxes Fazil Mammadov said in his article posted on the website of the Intra-European Organisation of Tax Administrations (IOTA).
According to him, the Ministry of Taxes being a vibrant and dynamic organization built up its administrative resources and organizational structure flexible to a rapid changing economic environment, whilst conducting reforms in tax administration and management as necessary. However, recent changes in national tax administration are more extensive, both in terms of essence and coverage.
“A new perspective on the tax system, is first of all, based on two main principles. The first and foremost is "individual approach" principle. Until now, the tax service has mainly focused on taxpayers with the largest turnover and all taxpayers (large, medium and small) have been subjected to the same administrative mechanisms, regardless of their turnovers. The primary task of the tax administration in the new period is to shift this approach and shape relevant approaches per taxpayer category. To this end, by using the principle of "turnover intervals", which is widely applicable in international practice, it is considered to differentiate the approach with respect to taxpayers in all areas of tax administration and shape a more efficient, flexible, and transparent administration. The key objective of this approach is to separate working principles concerning SMEs, large enterprises and those with special regime, provide an individual approach to each business group, and ensure proper distribution of fiscal and administrative burdens. The second important principle is "building and deepening the partnership with business entities". Although Ministry of Taxes has embarked on building partnership bonds with business entities for several years now, the new approach stipulates the transformation of these relations into what will focus more on clarification of taxpayer obligations and delivering innovative and modern services to them. Due to international practices, it was decided to introduce an innovative system of targeted individual and rapid services based on "Green corridor" for disciplined taxpayers”, he said.