BAKU, Azerbaijan, May 6. The "Investigate Contractors" electronic service has been launched for taxpayers in Azerbaijan, Trend reports via the State Tax Service (STS) under the Ministry of Economy.
In order to ensure the implementation of the relevant decree of the President of the Republic of Azerbaijan, the Cabinet of Ministers approved the "Rules for accessing taxpayer data of other taxpayers in the tax authority".
According to these rules, the new electronic service "Investigate Contractors" was developed, allowing for the transfer or management of data that constitutes commercial and tax secrecy related to a taxpayer, without increasing the administrative burden on the STS information systems.
The "Investigate Contractors" service can be used via an enhanced electronic signature through taxpayers' electronic cabinets in the tax authority's system. The person submitting the query can enter the contractor’s taxpayer identification number (TIN) through a specific screen and send a request to view information related to that contractor, including commercial (tax) secrets available in the tax authority’s system. The contractor (the party being queried) can either accept or refuse the disclosure of the requested information.
This service frees other government bodies, banks, and financial institutions from the need to provide taxpayers with certified references on paper through the STS. Moreover, it helps minimize risks related to dealing with commercial partners who engage in non-transparent activities or are involved in non-business operations (high-risk contractors).
The electronic service offers various capabilities. It allows taxpayers to assess the risks of working with contractors, access legal and existing data available in the STS system about potential business partners during the contract negotiation stage, and view information regarding the activities of both the querying and the queried taxpayer to evaluate their operations.
Furthermore, the "Investigate Contractors" service performs a public oversight function, encouraging taxpayers to operate transparently and within the framework of the law. If a contractor refuses to provide the requested information, this will help avoid financial losses and other negative consequences that may arise during business activities.
Meanwhile, the possibility of obtaining information about contractors will help reduce the number of transactions with high-risk taxpayers and prevent the imposition of liability measures and additional tax assessments stipulated in the Tax Code due to conducting risky transactions.
