MEASURES to be taken under the State Program (2005-2007) on Improvement of Tax Administration of the Azerbaijan Republic

No

Main Directions

Measure

Executive Body

Duration

1.

Improvement of a system of voluntary tax payments and ensuring a reliable protection of taxpayer rights

1.

Establishment of a modern Call Center within the MOT

Ministry of Communication and Information Technology, Ministry of Taxes

2005-2006

2.

Establishment of computer terminals for taxpayers at the regional tax agencies

Ministry of Taxes

2005-2006

3.

Enabling taxpayers to get access to the computer database of the MOT through their own passwords and check their personal account sheets of liabilities & payments

Ministry of Taxes

2005-2006

4.

Teaching the “Tax Culture” courses in the secondary schools

Minsitry of Education, Ministry of Taxes

2005-2007

5.

Establishment of specially equipped rooms at secondary schools for teaching issues concerning taxes

Minsitry of Education, Ministry of Taxes

2005-2007

6.

Organization of meetings between taxpayers and MOT employees on a regular basis

Ministry of Taxes

2005-2007

7.

Organization of TV and radio broadcasts concerning the MOT activities and tax education issues

Ministry of Taxes, “Television and Radio Broadcasting” Joint Stock Company

2005-2007

8.

Improvement of the “Taxes” newspaper issued and the web-site launched by the MOT

Ministry of Taxes

2005-2007

9.

Study & application of modern international experience in the field of taxpayer service

Ministry of Taxes

2005-2007

10.

Development of an organizational and normative legal base for rendering private tax consulting services to small business

Ministry of Taxes, Ministry of Economic Development

2006-2007

11.

Development of curriculum for private tax practitioners on tax issues and conducting special training courses at the MOT Training Center

Ministry of Taxes

2006-2007

12.

Allowing taxpayers to file a complaint to the superior tax body (official) through the official web-site of the MOT

Ministry of Taxes

2006

13.

Developing proposals regarding establishment of a more advanced appeal system for taxpayers

Ministry of Taxes, Ministry of Justice

2006-2007

14.

Study of international experience regarding tax amnesty with respect to property legalization and developing proposals

Ministry of Taxes, Ministry of Justice

2006

15.

Study of international experience on management, technical support and software supply in order to shift to self declaration system for all citizens of the country and evaluation of required human, technical and financial resources

Ministry of Taxes, Ministry of Finance, Ministry of Justice, Ministry of Communication and Information Technology

2006

16.

Developing a draft of the State Program on transfer to self declaration system for the all citizens of the country

Ministry of Taxes, Ministry of Finance

2007

2.

Reinforcing the struggle against tax fraud and tax evasions, strengthening the tax administration as an low risks system

1.

Improving the registration system of VAT payers

Ministry of Taxes, Ministry of Finance

2005-2006

2.

Actions to be taken to detect those who are inclined to evasions before registration:

-       developing diagnostic criteria regarding suspicious economic transactions, tax fraud and evasion features;

-       development of a computer database between the MOT and third parties and integration thereof into the MOT database;

-       simplification of information exchange between the MOT and third party based on the appropriate criteria

Ministry of Taxes, Ministry of Finance, State Customs Committe, National Bank, Ministry of İnterior, Ministry of Transportaion, Ministry of Justice, State Statistics Committee

2006

3.

Development of proposals regarding application of financial sanctions for violation of tax legislation with respect to VAT

Cabinet of Ministers, Ministry of Justice, Ministry of Finance, Ministry of Taxes

2005

4.

Improvement of legal and economic analytic database for audit planning under the MOT and integration of this database into the MOT database

Ministry of Taxes

2005-2006

5.

Automation of taxpayer selection process for field inspection purposes in order to increase the efficiency of field tax audits and eliminate subjectivity of the process of selection process

Ministry of Taxes

2005-2006

6.

Ensuring impartiality of on-site tax audits through evaluation of their effectiveness based on the key performance balanced criteria

Ministry of Taxes

2005

3.

Improvement of enforced collection system and prevention of occurrence of tax arrears

1.

Grouping tax debts according the maturity within the MOT database and automation of sending notifications to non-complied taxpayers

Ministry of Taxes

2006-2007

2.

Prevent increase of tax arrears through improvement of VAT registration process

Ministry of Taxes

2005-2007

3.

Development of proposals regarding new interests rates accrued for unpaid debts balances

Ministry of Taxes

2006-2007

4.

Meeting the MOT management system to international standards

1.

Implementing an performance measurement system for the all kind of activities of structural divisions of the MOT and local tax offices

Ministry of Taxes

2005-2006

2.

Reinforcement of Management Information System (MIS) for optimizing the tactical planning and decision-making capacity of the MOT

Ministry of Taxes

2005-2006

3.

Improving procedures related to the MOT activities and reinforcement of internal security system in order to detect corruption risks and prevent them

Ministry of Taxes

2006-2007

4.

Implementing individual performance measurement system for the MOT employees

Ministry of Taxes

2006-2007

5.

Improving the skills and knowledge of the MOT managers in business planning, monitoring and performance measurement of activity of interest

Ministry of Taxes

2005-2006

6.

Establishing a human resources management computer database system for the MOT employees

Ministry of Taxes

2005-2007

7.

Creating a system of material incentive and awarding the MOT employees based on the results achieved

Ministry of Taxes

2005-2007

8.

Introduction of modern training conceptions and methods and increasing the material and technical basis of the MOT Training Center

Ministry of Taxes

2005-2007

9.

Organization of an computer long distance training for both the MOT employees and taxpayers and develop necessary training materials and software

Ministry of Taxes

2005-2007

5.

Development of a computer database system that meets the modern requirements

1.

Development of software for all necessary sub-systems of the MOT computer information system and application thereof

Ministry of Taxes

2005-2006

2.

Meeting the management and administrative processes to those of technological ones at all structural divisions of the MOT

Ministry of Taxes

2005-2006

3.

Creating a single electronic registration system for taxpayers

Ministry of Taxes

2005-2006

4.

Ensuring transfer to electronic filing tax returns

Ministry of Taxes

2006-2007

5.

Exchange of electronic data registries regarding payment documents among taxpayers, tax agencies, banks and treasury

Ministry of Taxes

2006-2007

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