Weekly economic review (June 24-28)
Azerbaijan's Taxes Ministry starts introduction of e-audit in oil and trade spheres
The Ministry of Taxes of Azerbaijan is implementing audits in oil companies and trade spheres, the Advisor to the Minister of Taxes of Azerbaijan Asef Asadov said in an interview to the ministry's official publications -Taxes newspaper.
"The electronic audit primarily covers foreign companies operating in the oil sector, local holdings, businesses and companies that have branches and leading operations abroad as well as large and medium-sized trade and services objects, actively using electronic control cash registers and POS- terminals," Asadov said.
In addition, he said, e-auditing will benefit companies in the banking, insurance, leasing, telecommunications sectors, the companies that specialize in e-commerce, processing centers, enterprises providing public services.
"The Ministry has already begun pilot testing electronic auditing in the country. Preliminary results of its application in the oil, banking and trade sectors have indicated that automated data collection and risk analysis of tax evasion may cut in half the time spent for and human resources involved in audit," Asadov said.
According to him, thanks to the automated analysis of risk during the test check of five companies, the share of accrued taxes in audited circulation has significantly increased in comparison with previous inspections (the proportion has doubled in the oil sector).
"Test audit of taxpayers, who use trade-checkout machines, has allowed to reveal facts about tax evasion faster and more efficiently - in just 15 days," Asadov said.
According to him, transition to the new system is not so simple and the number of tax authorities, fully working on a similar audit platform in the world does not exceed 10.
In May, the project for introduction of e-audit system was completed in Azerbaijan. It was carried out in conjunction with the tax administration of the Netherlands in the framework of international twinning programs.
In order to facilitate the study of software for electronic audit by simple tax auditors, new software (SW) ACL-Mentor has been developed. Also, a new interface was created jointly with the German company DATEV that is easy to use and meets the objectives of e-audit.
Electronic audit is intended to protect the rights of taxpayers, its application requires an automated information system.
The use of electronic audit may allow a 90 percent cut in the number of field audits.