ConCeptIon - Taxes.Gov.Az · baijan (2005-2007)” approved by the Order of the President of the Republic of ... he Conception intends the development of taxpayer service sphere,

ConCeptIon on Improvement of Services Rendered to Taxpayers by Tax Authorities(2011-2015)

1

Content:

1.Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

2.Thepresentsituation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

3.TheConceptionondevelopmentoftaxpayerservice . . . . . . . . . . . . . . .5 E-services...................................5 TelephoneInformationService(TIS) . . . . . . . . . . . . . . . . . . . . . . .8 Improvementoftaxreturns,simplificationoftaxpayments . . . . . . . . . . . . 11 Preventivemeasuresonminimizingandemergenceoftaxdebts . . . . . . . . . 13 Taxappealsystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Improvementoforganizationoftaxpayerservice . . . . . . . . . . . . . . . . 15

4.Expectedresults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

5.ActionPlanfor2011-2015ondevelopmentoftaxpayerservicesphere . . . . . 20

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InordertoprovidethefulfillmentofobligationsimposedontaxauthoritiesoftheRepublicofAzerbaijan,includingcarryingoutofwideactivitiesoninformingtaxpayers,enlightenmentandpropaganda,therewasstartedthe

functionalre-organizationoftheMinistryofTaxes,andinordertoorganizerelationswithtaxpayers,renderthemnecessaryservicesandcoordinateallthementionedmatters,in2002TaxpayerServiceDivisionsinlocaltaxauthoritiesandTaxpayerServiceDepartmentinthecentralapparatusoftheMinistrywereestablished.

Withthepurposeofeffectiveorganizationoftheactivitiesontaxpayerservicestructures,improvementoftheexistingmethodicalbase,therewerepreparednecessarynormativedocuments.Inthebeginningof2003withtheparticipationofUSAStateTreasuryconsultants“TheConceptiononTaxpayerService”wasprepared.TheConceptionreflectedthewholespectrumofservicesrenderedtotaxpayersanddeterminedthefollowingmaindirectionsofworktobedonebythetaxauthoritiesinthissphereinthenextfewyears:

• Taxpayerawareness• Realizationofenlightenmentaimedactivities• Applicationoftaxpropaganda,appealsandadvertisements• Preparationofdifferentprintingmaterialsontaxes• Provisionoftaxpayerswithdeclarationforms,differentnormative-legaland

otherdocumentsofaninformativenature

Duringthepastperiodalongwiththerealizationofactivitiesinthisdirectiontherewerepreparedandcarriedoutnewprojectsinrelationtoassistancetothedevelopmentofentrepreneurshipandrenderingservicestotaxpayers,andapprovedthefollowingnormativeacts,whicharelegalbaseforadurabledevel-opmentofthetaxsystem,includingtaxpayerservicesphere:

-“StateProgramonimprovementoftaxadministrationintheRepublicofAzer-baijan(2005-2007)”approvedbytheOrderofthePresidentoftheRepublicofAzerbaijan–992datedSeptember12,2005;

-“StrategicPlanonimprovementoftaxlegislationandadministrationfor2009-2012”approvedbythedecreeoftheMinistryofTaxes–081704010108620,datedNovember3,2008.

1.Introduction

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Themostimportantdocumentthatparticularlystimulatedthedevelopmentoftaxpayerservicespherewasthe“StateProgramonimprovementoftaxadministrationintheRepublicofAzerbaijan(2005-2007)”approvedbythe

OrderofthePresidentoftheRepublicofAzerbaijan№992,datedSeptember12,2005.

AccordingtotheStateProgram,theinternationalexperienceontaxpayerservicewasstudied,andrangeofproposalsandprojectswaspreparedandrealized.

Onthebaseof195TelephoneInformationServicecoveringBakucity,therewasestablishedamoderncallcentrethatcoveredallregionsoftherepublic,andafterenlargementofservicefunctionsandcoveragearea,therewascre-atedanopportunityforadirectappealto195CallCentrebytaxpayersfromallregionsoftherepublic.

Withthepurposeofdevelopmentofthevoluntarytaxpaymentsystemandformingafavorablebusinessenvironment,16computerterminals,whichwereprovidedwithmodernequipmentandhighspeedinternetaccess,wereestab-lishedandgiventotheuseoftaxpayers,firstofallintownsanddistrictswithoutataxauthority.

Inordertocarryoutaneffectivetrainingoftaxmatters,therewereestablished54methodicalcabinetsinthesecondaryschoolsofthecountry.

TheappearanceofthewebsiteoftheMinistryofTaxeswaschangedandpresentedtousersinanewdesign.Easynavigation,introductionofnewsec-tionsandplacementofinformationinthreelanguages–Azerbaijani,EnglishandRussianwereprovidedinthenewversionofthewebsite.

Suchopportunities,asmakingcomplaintstoahighertaxauthority(official)andpresentingproposalsonimprovementoftaxlegislationandadministrationviathewebsiteoftheMinistryofTaxeswerepresented.

Inordertoconsidertaxpayers’complaintsondecisionsoftaxauthorities(acts),aswellasonactivities(inactivity)oftaxauthorityofficialsoutofcourt(beforecourts),therewasestablishedTaxAppealsBoardwithintheMinistryofTaxes.

Oneoftheimportantstepsmadeinthedirectionofenlargementofservicesrenderedtotaxpayers,istheapplicatione-declarationsystem,forthefirsttime

2.Thepresentsituation

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inourrepublic,startingfromthebeginningof2007andcreationofInternetTaxDepartment-e-taxes.gov.azinordertoprovidesubmissionoftaxreturnsinanelectronicform.

Therewasstartedtheregistrationofentrepreneurialactivitysubjectsaccordingtothe“one-stopshop”(singleregistrationauthority)principle.

Thedevelopmentoftaxpayerserviceinthenearfutureanddirectionsofprojectscarriedoutinrelationtothis,arereflectedinthisConception,whichispreparedbyconsideringthepresentrequirements.

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TheConceptionintendsthedevelopmentoftaxpayerservicesphere,en-largementofthecoverageareaofrenderedservicesandincreasingthequalityandapplicationofnewfunctionaladministrationformsinthissphere

inthenewperiod.Thepurposeistodeveloptheprocessofvoluntarycompli-ancewiththetaxlegislationbasingonpartnershipandcooperationandusingmoderninformationtechnologies,wherethemainaimsarethefollowing:

• Enlargementofapplicationofelectronicservices,givingmasscharactertotheuseofe-services;

• Improvementoftaxdeclarations,simplificationoftheircompilation;• Simplificationoftaxpaymentprocess,applicationofelectronicpayments;• Organizationofperiodicmeasuresfortimelypaymentoftaxesandprevent-

ingtheincreaseoftaxdebts;• Improvementoftaxappealsystem;• Improvementofformsandmethodsoftaxpayerservice;• Improvementofprofessionallevelofemployeesworkinginthesphereof

taxpayerservice.

E-servicesEnlargementofthespectrumofelectronicservicesrenderedtotaxpayers,giv-ingmasscharactertotheuseofe-servicesaresomeofthemostactualtasksofthepresentperiod.Here,themainpurposeistolimittheperspectiveformsoflive(physical)contactwithtaxpayersandachievetheenlargementofap-plicationofelectronicservicesrenderedtotaxpayersbytaxauthorities,byusingmoderninformationtechnologiesinthissphere.

TheMinistryofTaxessuccessfullystartedapplicationofelectronicservices,afterthelaunchofAutomatedTaxInformationSystem(AVIS)in2006,theinternaldocumentflowandreport-informationsystemfullymanagedelectronically,theInternetTaxDepartmentwascreated,andtherewasstarteddispatchofdeclara-tionsinanelectronicformandwiderrenderofelectronicservicestotaxpayers.Nowover90percentofactivetaxpayersareconnectedtotheelectronicdocu-mentexchangewithtaxauthorities.Alongwithapplicationofe-declaration,VATdepositaccount,e-exchangewithbanks,theapplicationofelectronicinvoicesarealsocarriedoutviaInternetTaxDepartmentstartingfrom2010.

Atthewebsiteoftheministry,taxpayerscangetresponsestothequestions

3.TheConceptionondevelopment oftaxpayerservice

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theyaskedinashorttime,directlyappealtothe“Connectionwiththeministeroftaxes”sectiononaspecificissue,cangetformsofdocumentsonnormativeactsontaxes,ondeclarationsandregisteroftaxpayers.

Alongwiththementionedabove,limitationoflivecontactformswithtaxpayersandrenderingelectronicservicesshouldcovermorespheresofthetaxsystem.Takingmasscharacterofsubmissionofthesedeclarationsinanelectronicform,correspondencewithtaxpayers,creationofanopportunitytopaytaxesviaelectronicmeansmaycoverthecontrolissuesbythetaxauthoritiesovertheactivityoftaxpayers.Theseworksshouldbecarriedoutgradually,bystages,beeffectiveandcreateopportunitiestodecreasetimeandotherresourcesspentonfulfillmentofobligationsoftaxpayersandtaxauthorities.

Servicesrenderedtotaxpayersweresetincurrent,daily,primaryconnectionandreceptionformsintheterritorialtaxauthorities,andingeneral,analysisandcoordinationformsintheMinistryofTaxes.Consideringrecentestablishmentofregionaltaxpayerserviceterminalsandincreaseoftheirnumberinthenearfuture,thereshouldbepaidaspecialattentiontoenlargementofthelevelofservicesrenderedtotaxpayersbytheseterminals.

Futureenlargementoftheactivitiesoftaxpayerserviceterminals,theirfunction,andspectrumoftherenderedservicesshouldcreateaconditionforwiderapplicationsbythetaxpayerstoterminals,andmoreefficientorganizationoftheservice.

Ministry of Taxes

Tax Administration

Service Terminal

7

Alongwithservicesrenderedtoentrepreneurs,withintheframeof“electronicgovernment”projectcarriedoutinourrepublic,itispossibleforpeopletousedifferentelectronicservicesofstateauthoritiesviatheseterminals.

Possible directions of activity of taxpayer service terminals

Issues On Recruitment In State

Authorıtıes

AcceptanceOfE-Documents

Communıcatıon, ınsurance and publıc

utılıtıes• E-ınformatıon• E-payments

Taxpayer Servıce

Termınals

Tax Servıces • E-Returns

• E-DataOnTaxDebts• E-DataOnTaxLegıslatıon

• TaxPayments• Workshops• Traınıngs

Servıces On Entrepreneurshıp

• Workshops(StartıngBusıness)

• ProfessıonalTraınıngs(Accountancy,Marketıng)

• E-Informatıon• E-Applıcatıons

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TelephoneInformationService(TIS)“195”callcentreoftheMinistryofTaxesstartedoperatingsince2003coveringBakucity,andin2006,bycoveringthewholerepublic,becameoneofthemostappliedbytaxpayersaddresses.Duringthelast3years,theaveragenum-berofappliedtotheTIShasbeenincreasedby84000personsonaverage.Oneofthelatestinnovationsinthisservicesphereistheautomateddispatchofdatatotaxpayers.

Theinternationalexperiencewasstudied,technicalassignmentonorganiza-tionofdispatchofvoicemessagestotaxpayerswasgiven,anewsoftwarewasdesignedinordertosendmessagesandgetinformationontheresultsofthesentmessages,andnecessaryadditionsweremadetothemenuinthe“Search&Report”informationsystemandinthe“Service”subsystemofAVIS,topreparethelistofthetaxpayertowhomthemessageswillbesent.Forthefirsttime,inNovember13,2009themessagessystemwaslaunchedandtheirdispatchiscarriedoutonnecessity.DuringJanuary-May2010,the“195”callcentreprovidedthe5timesdispatchofvoicemessagesto33605taxpayersontheirtaxdebts.

Nowthereiscarriedoutaworkonestablishmentofaunitedcallcentrewithasingleprefix,byintegrating“195”telephoneinformationservicewithcallcentresofotherstateauthoritieswiththepurposeofobtainingbyentrepreneursandcitizensinformationfromonesource,withoutatimeloss,onbusinessregis-tration,licensing,accounting,taxes,dues,customsregistration,socialandotherobligatorypayments,labourlegislation,socialprotection,pensionprovisionandetc..StartingfromJuly1,2009theMinistryofEconomicDevelopmenthasjoinedthe“195”callcentre(195-2).Accordingto“StateProgramondevelopmentofcommunicationandinformationtechnologiesintheRepublicofAzerbaijanin2010-2012”(ElectronicAzerbaijan)approvedbytheOrderofthePresidentoftheRepublicofAzerbaijan№1056,datedAugust11th,2010,theestablishmentofthe“Universalcallcentreinthesphereofentrepreneurialactivity”wasalsochargedtotheMinistryofTaxes,MinistryofEconomicDevel-opmentandotherrelevantstateauthorities.Proposalsontheorganizationofthe“Universalcallcentreinthesphereofentrepreneurialactivity”,provisionofsystematicandconsistentworksinthisspherewerepreparedandprovidedtothegovernmentoftherepublic.

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Possible scheme of a universal call centre on appeals of citizens in the Republic of Azerbaijan

EnlargementofelectronicservicesrenderedtotaxpayersbytheMinistryofTaxes,aswellasapplicationofe-declarations,issueslikeVATdepositaccounts,e-exchangewithbanksincreasedthenumberofappealsto195andmajorityofthesequestionswererespondedbyredirectingtoAVIS(technicalassistance195-1-2).Consideringriseofapplicationsrelatedtoe-servicesinaccordancewiththeapplicationofelectronicinvoices,itisproposedtocarryouttheiran-swerandclarificationoftechnicalproblemsdirectlyviaAVIS.Generally,consider-ingenlargementofthespectrumofservicesrenderedbyTISanddevelopmentofelectronicservices,itisnecessarytoincreasethelevelofopportunitiestouseAVIS.

Hello... 195

Taxes

AccountancyFinance

Insurance

Customs

Dus and tariffs

Property

Bank services

Labor and social

protection

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Inordertoprovidetheincreaseofefficiencyoftheactivityofthecallcentre,moreattentionshouldbepaidtothefollowingissues:

• increasetheprofessionallevelofTISemployees,organizationofspecialtrain-ingsforthem,

• creationofaquestion-answerbaseinordertogiveresponsestotheenteredquestionsinasingleandflexibleform,provisionofregistrationofdifficultquestionsandanswertotheappliedpersonsintheformoffeedbacks,

• systematizationofsendingautomaticandaddressedvoicedatae-mailstotaxpayersand,increasingtheefficiencycoefficient,applicationofdispatchofwrittenmessages(sms)tomobilephones,

• organizationofstatisticregisterofcalls,receivedfromregions(differenttownsanddistricts)andmobileoperators,andcarryoutanalysisinthisdirection,

• enlargementofworksoninformingpopulationonopportunitiesofdirectandfreecallsfromallregionsofthecountry.

Thefollowingactionsshouldbetakeninordertoprovidetheenlargementoftheapplicationspectrumofautomaticdispatchtotaxpayersofdata(messages)viaTISfromthepointofaccelerationofthisprocessandincreasetheefficiency:

• removalofdisparitiesintelephonenumbersbytaxauthoritiesinregisterdataofalltaxpayers,

• makingnecessarychangesinregisterdataoftaxpayersregularly,• additionofaspecialcolumninordertoshowe-mailsandactivetelephone

numbersoftaxpayersintaxreturns.

TIS

Apparatus of the MTAVIS

• Software• Rendering electronic

services • Data integration • Finding out the tax debt in

an online regime • Necessary technical

support

• Methodical management

• Flexible solution of problems in applica-tion of the legislation

• Direction of the activity and control

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Improvementoftaxreturns,simplificationoftaxpaymentsDuringthelastyearsinrelationtoimprovementoftaxreturnstherewascarriedoutconsistentwork,theformsoftaxreturnswerechanged,theircapacitywasenlargedandthenumberofinformationlineswasincreased.

Therewasimprovedtheprocessofsubmissionofdeclarationstoataxauthority,andcreatedanopportunityfortaxpayerstosubmitdeclarationsdirectlyviaelectroniccarriers.Withintheframeofdevelopmentofthetaxsystem,theimprovementoftaxdeclarationsandsimplificationoftheircompositionisregu-larlycarriedout.Inmajorityofdevelopedcountriesdifferentdeclarationforms,fromsimpletothecomplexonesareappliedaccordingtothestatus,typeandamountofincome,sothenecessityandimportanceofstudyofthisexperienceshouldbeconsidered.

Againstthebackgroundoftheenlargementofelectronicservicesrenderedtotaxpayers,reducingthetimespentonfulfillmentoftaxobligations,improve-mentandsimplificationoftaxpaymentprocessisoneofimportantfactorsthatpositivelyaffectentrepreneurialactivityandbudgetreceipts.Thiscreatesanopportunityforminimizingthepercentagecalculatedontaxesforlatepaymentandthus,todecreasethefinanciallossoftaxpayers.

Inmajorityofcountriesinordertosimplifythetaxpayment,thereisgivenastrictattentiontotheuseoftechnologicalmeans.Ifusedcorrectly,electronicpaymentsystemsfastentheprocess,improvedatacollectionanddecreasetheleveloferrors.Forexample,intheUSAduring2009,theleveloferrorsinelectronicdeclarationswas1%;inpaperformwas20%.

Taxpayersshouldcompletelyrelyonpaymentsystems,atthesametime,thereshouldexistlawsonprotectionofinformationsecrecyandapplicationofelec-tronicsignature.Electronicpaymentcanbecarriedoutindifferentways,includ-ingpaymentviainternet.Atthepresentstagethereshouldbegivenpreferencetorealizationofpaymentsbytaxpayersviaacceptionstallsthatareconsideredlessrisky.

Intheinternationalexperiencetheindicatoroftimespentonfulfillmentoftaxobligationsconsistsoftimespentonpreparationandsubmissionoftaxreturnsandpayment(orwithholdingatthesourceofpayment)onthreemaintypeoftaxes–profittax(corporateincome),VAT(ortaxfromsales),andtaxesfromwages(includingtaxesfromsalariesandsocialdeductions).TheanalysisofWorldBanktheDoingBusinessgrouponthecalculationoftimespentonfulfill-mentoftheseobligationsandnextthreeactivities-“preparationoftaxreturns”,

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“submission”and“paymentoftaxes”,showedthatinthemajoreconomiesoftheworld(G8)areaveragelyspent219hoursonfulfillmentoftaxliabilities,whichis67hourslessthantheaverageindicatorthroughouttheworld.Theaverageindicatoron30membercountriesofOECDis212hours.In2009,thisindicatorforAzerbaijanwas376,223forTurkey,271forKazakhstan,320forRussianFederation,387forGeorgiaand736forUkraine.

TheexperienceofmakingVATpaymentsthroughInternetTaxDepartmentinanelectronicwayshowsthatorganizationofpaymenttothebudgetofothertaxeselectronicallyorinanyotherformofautomaticpayment,wouldcreateanopportunitytoreducethetimespentonfulfillmentofliabilitiesandintensificationofbudgetentries.Thereisanecessitytorealizecertainimprovementswiththepurposetodecreasethetimespenton“Preparationoftaxreturns”.

Consideringthementionedabove,itisnecessarytocarryoutthefollowingworkinthenearfuture,inordertodecreasetimespentbytaxpayersonfulfillmentoftaxliabilities,carryoutsomeextraprojectsforimprovementoftaxreturns,simplifytaxpayments,andatthesametime,developthetaxadministration,decreasethecorruptionrisksandprovidetransparency:

• simplificationanduniversalizationoftaxreturns,• popularizationofsubmissionofothernecessarydocumentsrelatedtothe

activityoftaxpayeralongwithdeclarations,viaelectroniccarriers,• automatizationofprocessesonacceptionandprocessingofdeclarations,

determinationoftaxevasionriskindeclarations,• organizationofelectronicpaymentsystemoftaxesandotherbudgetpay-

mentsbytaxpayers.

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PreventivemeasuresonminimizingandemergenceoftaxdebtsConsideringnegativeeffectsofnon-timepaymentoftaxestothebudgetestab-lishedbythelegislation,andspendingconsiderabletimeandresourcestotheenforcementprocessescarriedoutbytaxauthorities,theincreaseofthelevelofvoluntarycompliancehasaspecialimportance.

Inordertominimizetaxdebtsandreachsuccessontheirprevention,itisnecessarytoprovidetaxpayerswithconcretelegal,methodicalandtechnicalassistancealongwiththeirgeneralinformationandenlightenment.

AccordingtothisConception,themeasuresrelatedtoincreaseofthecoef-ficientoftimelyfulfillmentoftaxliabilitiesbytaxpayers,decreaseofrisksofemergenceoftaxdebt,consistofthefollowing:

• Analysisofthedynamicsoftaxdebtsondifferentperiodsandtaxes,determi-nationofreasonsofemergenceofthesedebts,

• Minimizingdebtsoftaxpayers,carryingoutpracticalactivitiesinordertopreventsuchdebts,

• Operativesubmissionofdataontaxdebts,emergedontaxpayersandtheirpayment,

• Preparationanddistributionofspecialinformationontaxpayers,whofailedtopaytheirdebtsandpunitivemeasurementscarriedoutagainstthem.

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TaxappealsystemOutofcourtsettlementsystemofeithercomplaintsorarguesrelatedtotaxesisoneofthemostimportantaspectsofprovidingcompliancewithtaxlegislation,bothbytaxpayersandtaxauthorities.

Inmanydevelopedcountriesoutofcourt(beforecourt)settlementofappealsorarguesrelatedtotaxesisusuallycarriedoutbytheappealsystemworkingattaxadministrations.

Duetonot-existenceofspecializedtaxcourtsinourrepublic,settlementofalltaxarguesineconomiccourts,causestimelossandexpenditureofotherresourcesbothfortaxpayers,andfortaxauthorities.

Creationofamoreperfectappealsystemfortaxpayerswasforeseenbythe“StateProgramonimprovementoftaxadministrationintheRepublicofAzerbai-jan(2005-2007)”,theexperienceofdevelopedcountrieswasstudiedduringthepastperiodandtheTaxAppealBoardoftheMinistryofTaxeswasfounded.Withthepurposeofathoroughprotectionoftaxpayersrights,improvementofworkonconsiderationofcomplaints,therewereapprovedtheRegulationsonTaxAppealBoardoftheMinistryofTaxes,thestructureoftheTaxAppealBoardwasenlargedandthepermanentsecretariatwascreated.

Bycreatingsuchsystem,theMinistryofTaxescarriesoutacentralizedcollec-tionofenteredcomplaintsinasinglestructure,strengtheningthecontrolovertheirconsiderationinanorder,determinedbythelegislation,reflectingtheposi-tionofataxauthoritybasingonasingleapproachmethod.

AttheTaxAppealBoard,thecomplaintsoftaxpayerswhoarenotsatisfiedwithdecisions,writtenanswersrelatedtocomplaintsorappealsexaminedbyfunctionaldepartmentsofCentralApparatusoftheMinistryofTaxes(excludingapplicationsrelatedtooffencesoncorruptionandothersfromthisaspect)areconsidered.

WiththepurposeofexaminationofdiscontentsandcomplaintsoftaxpayersondisputablequestionsinrelationtodeskauditthroughBakucity,thereoperatesanAppealdivision.

Inordertoimprovethetaxappealsystemconstantlyitisproposed:

• theprovisionofefficiencyandtransparencyinconsiderationofappeals,• therealizationofpurposefulworksinthedirectionofinformingofcommunity

ontheactivity.

Advantagesofaperfecttaxappealsystemandexpectedresults:

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• provisionofobjectivecharacterinconsiderationofcomplaintsreceivedfromtaxpayers

• increaseoftrustandfaithoftaxpayersontaxauthorities• increaseofresponsibilityoftaxauthorityemployeesforobjectiveandcorrect

on-siteanddeskaudits• strengtheningthepartnershipbetweenataxauthorityandataxpayer.

ImprovementoforganizationoftaxpayerserviceWhentalkingaboutefficientorganizationoftaxpayerservice,itmentionsthedeterminationofthespectrumofrenderedservicestotaxpayers,criteriaofren-deringtheseservices,standardsoneachcase(service)andcomplyingwithit.

Consistenceofenforcedcollectionprocessbytaxauthoritiesfromaseveralstages,applicationoflotsofmaterial-technicalandhumanresourcestothiswork,andnon-reflectionofdebtamountsintheactuallydeterminedtimeframes,makesitnecessarytodeveloptheprocessofvoluntarycomplianceconstantly.

Developmentoftheprocessofvoluntarycompliance,initsturnrequiresdeterminationofthelevelofcompliancewithtaxlegislationbytaxpayersandconductingspecialmeasuresamongcertainlevelgroups.

Taxpayersaredividedtothefollowinggroupsinrelationtothelevelofcompli-ancewith(obedience)taxlegislation:Taxpayers-

• complying,• partiallycomplying,• notcomplying,withthetaxlegislation.

Taxpayerscomplyingwiththetaxlegislationbesidesforbeingdisciplined,gener-allycompletetheirtaxobligationsintime,submitreportsandothernecessarydataandareinclinedtomasterchangesoccurredinthetaxsystem.Theredonotoccuranyproblemsindispatchofdata,applicationofinnovationstothisgroupofpayers,whoserelationswithtaxauthorities,baseonahealthycoop-eration.

Themostnotablegroupisthegroupoftaxpayerswhopartiallycomplywithtaxlegislation.Workwiththisgroupofpayersisconsideredimportantbecause

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thereareopportunitiestoenterthemtothefirstgroup(complyingwithtaxlegis-lation)anditisdirectlyrelatedtotheefficiencyoftheworkcarriedoutwiththem.Foreseenmeasuresforthisgroupmostlyhaveapreventivecharacter.Inordertoincreasethelevelofvoluntarycomplianceofthesetaxpayersandstimulatethiswork,alongwithaddressedinformingandtaxenlightenment,itisproposedtoshowthemspecifictaxservices,legal,methodicalandtechnicalassistanceinthesphereofcompliancewiththelaws.

Thistimeitisnecessarytoanalyzethedebtsoflegalentitiesandphysicalpersons,actinginthestateandprivatesector,industry,productionandotherspheres,researchofthescopeandreasonsofnon-payment,andalsotodeterminesmalldebtamounts,liquidatesuchdebtsoftaxpayersandpreventtheiremergenceinthefuture,besidesforenlightenment,renderthemasagrouporpersonally,adviseandactiveassistanceinanorderdeterminedbythelegislation.

Thethirdgroup–arethetaxpayerswhodonotobeythetaxlegislationandworkwiththisgroupinthementionedabovedirections,doesnotgiveanyef-ficiency.Theundisciplinedcharacterofthesetaxpayersdoesnotcomefromthelackofinformation,butfromthepurposetowillinglyevadefromthepaymentoftaxes.Inordertopreventsuchcases,itisnecessarytotoughenthelegislationforthosewhoarenotcomplyingwithtaxdiscipline,includingtheprocessofenforcedcollectionoftaxdebts.

Anotherdirectionofshowingtaxpayerspurposefulservicesisthesystemofapplicationofdirectionalinformationmechanisms,byclassifyingthemintoseg-mentsandgroups.Wheninforminglargeandmiddleenterprises–taxpayers,thereareusuallyusedelectroniccorrespondence,internetpageoftheMinistryofTaxesandopportunitiesofmassmediaandthedistributionofbrochures,bookletsandotherprintingmaterialsaremorepreferable,whileinformingofsmallenterprisesandpersonalentrepreneursopportunitiesof“195”TISandmassmediaareusedmorefrequently.Generally,thereshouldbepaidmoreattentiontotheaddresseddeliveryofinformation.

Oneoftheimportantfactorsthatincreasetheefficiencyoforganizationoftaxpayerserviceisthedeterminationofsinglestandardsofthespectrumofrenderedservices,criteriaoftheirrenderingoneachcase(service)andcompli-ancewiththesedeterminedstandardsbyalltaxauthorities.Singlestandardsonservicecoveranyrelationbetweenataxauthorityandtaxpayer,responsestoapplications,documentationandofficialregisterservices,exceptofaudit-control,obligatorycollectionoftaxdebtsprocesses.

Renderingservicestotaxpayersinaccordancewithsinglestandardsarecarriedoutinmultifunctionalserviceandoperationroomsestablishedinthebuildingsoftaxauthority.Thistimetaxpayerenterstheoperatingroomandthenecessaryforhimservicesarerenderedhere.Therearealsocomfortableconditionsfor

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himtowaitandreceiveinformation.Asnecessaryservicesfortaxpayersareprovidedintheseservicerooms,ataxpayerdoesnotenterotherroomsorlevelsofataxauthority.

Applicationofsingletaxpayerservicestandardsintaxauthorities,serviceandoperatingroomsoftaxauthoritybuildings,andalsoattaxpayerserviceterminals,willcauseincreaseofqualityandefficiencyofservicesrenderedtotaxpayersthroughoutthewholecountry.Establishmentofmultifunctionalserviceandope-ratingroomsinthebuildingsoftaxauthorities,renderingservices(coordination,information,registration,serviceonCCM,debts,paymentsandetc.)inasingleplaceandcoordinationorder,isthemaintermofmoderntaxadministration.

Withthepurposetoimprovetaxpayerserviceandenlargethecoverageinthe“StateProgramofsocial-economicdevelopmentofregionsoftheRepublicofAzerbaijanin2009-2013”approvedbytheOrderofthePresidentoftheRe-publicofAzerbaijan,itisproposedtocreatetaxpayerserviceterminals.Beforetheendof2011,thenumberofnewbuiltandgivenintoexploitationterminalswillreach20,6extraterminalswillstartoperatinginrentedbuildings(inBaku,SumgaitandGanja).Beforetheendof2013,thereshouldbeprovidedtogiveintoexploitationofallsimilarterminals,inalldistricts.

InaccordancewiththeagreementoncooperationbetweentheMinistryofTaxesoftheRepublicofAzerbaijanandtheNationalConfederationofEntrepre-neurs(Employers)OrganizationsoftheRepublicofAzerbaijan,servicesofferedtotheuseoftaxpayersarecarriedoutviaarepresentativeoftheConfederationandemployeeofataxauthority.Forpreparationandrealizationofotherprojects,bothinthisandintheotherspheresofinterestoftaxpayers,cooperationwithConfederationandothernon-governmentalstructureswillbecontinuedinthefuture.

InordertorealizeactivitiesmentionedintheConception,renderservices,asitisdetermined,itisanecessarytobundlingrecruitthetaxpayerservicestruc-tureswithoptimalnumberofstaffandtoimprovethetechnicalequipment.

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ThemajorresultexpectedfromtherealizationofactivitiesmentionedintheConception,firstly,istoreachdevelopmentofvoluntarycompliancewithtaxlegislation,andshowassistancetotheformationofanefficienttaxclimate

inthecountrybyestablishingrelationswithtaxpayersbasingonnewprinciples–principlesofpartnershipandcooperation.

Enlargementoftheapplicationofelectronicserviceswillhelptocarryouttaxpayerserviceinoptimaltimeframes,willminimizethepeople’sdependenceoncomingtoataxauthority,thuswilllimitphysicalrelationformswithtaxpayers,atthesametimeitwilldecreaselossoftimeandmaterialresourcesbothfortaxpayersandtaxauthorities.

Alongwithtaxservicesrenderedtoentrepreneurs,withinthe“electronicgovern-ment”projectcarriedoutinourcountry,itwillbepossibleforpeopletousedifferentelectronicservicesofstateauthoritiesviataxpayerserviceterminals,enlargementoffunctionsofserviceterminalsandthespectrumofrenderedserviceswillresultwithmoreapplicationsbytaxpayerstoterminals,decreasetheworkloadofataxauthorityandanefficientlabourdivision.

Byincreasingtheefficiencyofactivityofthetelephoneinformationservice,alsotheprofessionallevelofemployeesworkinghereandbyorganizingspecialtrainings,thedispatchofinformationtotaxpayersviaTMSwillbeacceleratedanditwillprovideitwithanaddressedcharacter.

Taxreturnswillbeimproved;makingtaxpaymentswillbesimplified.

Byusingaperfecttaxappealsystem,theobjectivecharacterofconsiderationoftaxpayers’complaintsandtheirtrusttotaxauthoritieswillincrease.

Theservicestotaxpayerswillbecarriedoutinaccordancewithsinglestandards.

RealizationoftheactivitiesmentionedintheConception,willservetothedevelopmentofvoluntaryobedienceinthesphereoftaxlegislation,tode-velopmentofentrepreneurshipandtoformationofamoreefficientbusinessenvironmentalongwithmodernizationoftaxserviceandimprovementoftaxadministration,andasaresult,totheincreaseofbudgetrevenues.

4.Expectedresults

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70%

Means

2010 2015

Means

82-85%

27%13-15%

3% 2%

The scheme of ıncrease of the level of voluntary obedıence due tothe realızatıon of the conceptıon

Tax evadersPrimaryInvestigationofTaxCrimesDepartment

Partial Tax EvadersTaxdebts,taxaudit,operativecontrolandtaxpayerservicestructures

Voluntary PayersTaxpayerservicestructures

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PrimaryInvestigationofTaxCrimesDepartment

Taxdebts,taxaudit,operativetaxcontrolandtaxpayerservicestructures

Partialtaxevaders

Taxpayerservicestructures

Taxfraudsters

Voluntarypayers

Willingtopayvoluntarily,butnotmanagedtomakeitcompletely

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Main directions Future work Due date

Executors

1.Enlargementofapplicationofelectronicservices

Enlargementofinformationandpropagandaworkontheuseofelectronicservices,especiallyelectronicchancellery,preparationandpublishingofspecialbooklet,preparationanddemonstrationofanadvertisementtrailer

2011 TaxpayerServiceDepartmentApparatusoftheMinistryInformationAnalysisDepartmentFinanceandLogisticsDepartment

Starttoapplicationofregistrationofpersonalentrepreneursinan“online”regime

2012 MainDepartmentofOrganizationofStateRegisterofCommercialLegalEntitiesandEconomicAnalysisTaxpayerServiceDepartment

Applicationofsubmissionofstatementsanddocumentsontaxpayersactivitiesviaelectroniccarriers–changeoftheactivitytype,terminationoftheactivity

2012-2013

MainDepartmentofOrganizationofStateRegisterofCommercialLegalEntitiesandEconomicAnalysisTaxpayerServiceDepartment

Submissionproposalsonpaymentoftaxesinanelectronicform,applicati-onofe-payments

2012 InternationalRelationsDepartmentTaxpayerServiceDepartmentMainDepartmentofOrganizationofStateRegisterofCommercialLegalEntitiesandEconomicAnalysis

Preparationofproposalson“online”registrationofentrepreneurshipsub-jectsafterapplicationofelectronicsignaturesystemintherepublic

2014-2015


2.Improvementoftaxreturns

Makingresearcheswiththepurposeofsimplificationoftaxreturnsanddeterminationoftermsfortheirsubmission,studyofinternationalexperienceandsubmittingproposals

2011-2012

MainDepartmentofOrganizationofStateRegisterofCommercialLegalEntitiesandEconomicAnalysisInternationalRelationsDepartmentTaxpayerServiceDepartment

Creationopportunitiesfortaxpayerstofilldeclarationsandsendthemtoataxauthoritydirectlyinan

“online”regime,withoutusingspecialprograms,byonlyenteringInternetTaxDepartment

2012-2013


5.ActionPlanfor2011-2015ondevelopmentoftaxpayerservicesphere

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Executors

3.Increaseofefficiencyofthe

“195”TelephoneInformationServi-ceoftheMinistryofTaxes

Organizationoftrainingsthatbaseonthemostrecentinternationalexperienceinthissphereinordertoincreasetheprofessionallevelofemployeesofthecallcentre

2011 TaxpayerServiceDepartmentTrainingCentreFinanceandLogisticsDepartment

Creationofaquestion-answerbaseandanimprovedsearchbaseinordertoresponsetotheenteredqu-estionsinasingleandflexibleform

2011-2013

TaxpayerServiceDepartmentFinanceandLogisticsDepartment

Provisionofnecessarytechnicalequipmentonregistrationofcalls,receiptofreportsondifferentparametersandrealizationofanalysis,andshowingprofessionaltechnicalserviceinthissphere

2011-2015

TaxpayerServiceDepartmentFinanceandLogisticsDepartment

Determinationofspecificparametersforevaluationandstimulationofthecallcentreandemployeesworkingthere

2011-2012

TaxpayerServiceDepartment

Preparationofproposalsonprovisionofrealizationofworksoninformationandpropagandaamongtaxpayersinordertospecifyfromtimetotimedataontelephonenumberstoincreasetheefficiencyofdispatchmessagestotaxpayers,liquidationofdisparitiesinAVIStelephonenumbers,andgivingspecialattentiontothesesubjectsduringon-site,operativetaxinspections

2011 TaxpayerServiceDepartmentTaxAuditMainDepartmentMainDepartmentofOrganizationofStateRegisterofCommercialLegalEntitiesandEconomicAnalysisOperativeControlDepartment

Provisionofsystematicandcoherentrealizationofworksonorganizationofa“Universalcallcentreinthesphereofentrepreneurialactivity”,thatcoversproperauthorities

2011 TaxpayerServiceDepartmentFinanceandLogisticsDepartment

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Executors

4.Improvementoftaxpayerserviceorganization

Improvementofpresentmechanismsforanoperativedeliverytothetax-payersofchangesmadeinthetaxlegislationandinnovationsoccurredinthetaxsystem

2013 TaxpayerServiceDepartmentInformationAnalysisDepartment

Showingpurposefulservicestotaxpayersbyclassifyingthemintogroupsonthelevelofcompliancewithtaxlegislationandactivityfields,consideringdifferentsegmentsandsectoraldefinitions

2011-2014


Preparationandrealizationofspecialtrainingprogramsonspeech,com-municationandbehaviorfortaxemp-loyees,whoarealwaysinrelationswithtaxpayers

2011 TrainingCentreTaxpayerServiceDepartment

Creationofmultifunctionalserviceandoperatingroomsinthebuildingsoftaxauthorities,provisionofservices(coordination,information,registration,serviceonCCM’s,debts,paymentsandetc.)inasingleplaceandcoherentorder

2012-2015

ApparatusoftheMinistryTaxpayerServiceDepartmentMainDepartmentofOrganizationofStateRegisterofCommercialLegalEntitiesandEconomicAnalysisOrganizationofForcedCollectionofTaxDebtsDepartmentFinanceandLogisticsDepartment

Determinationandapplicationofstandardsonservicesrenderedtotaxpayersbytaxauthorities

2011-2013


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Executors

5.Minimizationoftaxdebts

Carryingoutpreventivemeasuresinthedirectionofnot-appearanceoftaxdebts,decreaseofthenumberoftaxpayerswhohavedebtstothebudget

2011-2015

OrganizationofForcedCollectionofTaxDebtsDepartment

Publicationofdataabouttaxpayerswhofailedtopaytheirtaxdebts(“blacklist”),itsplacementininternetandmassmedia

2012-2015

TaxpayerServiceDepartmentOrganizationofForcedCollectionofTaxDebtsDepartment

Provisionofdispatchofwrittenmessagestomobilephonesande-mailsoftaxpayersalongwithvoicemessageswiththepurposeofoperativedeliveryofinformationontaxdebts

2011-2015

TaxpayerServiceDepartmentOrganizationofForcedCollectionofTaxDebtsDepartmentFinanceandLogisticsDepartment

CreationattheinternetsiteoftheMinistryofTaxessectioncalled

“Howcanwehelpyouwithyourdebtstothestatebudget?”,andplacementofclarifyingmechanismsontaxreductions,prolongationoftaxpaymentterms,registrationofclaimsonbankruptcyandothersuchsubjectsthere

2011-2012

TaxpayerServiceDepartmentOrganizationofForcedCollectionofTaxDebtsDepartment

6.Enlargementofthespectrumofservicesrenderedtotaxpayersatthetaxpayerserviceterminals

Enlargementofthespectrumofactivityoftaxpayerserviceterminals,theirfunctionsandrenderedservices

2011-2013


Givingproposalsonuseofdifferentelectronicservicesofstateauthori-tiesbypeopleviataxpayerserviceterminals

2011-2012

TaxpayerServiceDepartmentNationalConfederationofEntrep-reneurs(Employers)OrganizationsoftheRepublicofAzerbaijan

7.Enlargementoftaxenlightenmentandpropaganda

Intensificationofcooperationwithmassmediainrelationtotaxenligh-tenmentandpropaganda,organi-zationof“tax”programsperiodicallygoingontheaironlocaltelevisionchannelsinregions

2011-2015

TaxpayerServiceDepartmentRegionalTaxDepartments

Conductingofnationwideknowledgecontestontaxesamongschoolchild-reninan“online”regime

2013 TaxpayerServiceDepartmentRegionalTaxDepartments

8.Continuationofimprovementoftaxappealsystem

Studyingprogressiveinternationalexperienceontaxappealsystem,includingtheexperienceofKazakh-stanandpreparationofproposalsonitsapplication

2012 LegalDepartment