Baku:Work is underway in Azerbaijan to implement artificial intelligence-based solutions to identify tax risks in advance and prevent possible violations, as announced by Samir Khaligov, the Acting Head of the Main Department of Tax Risk Management of the State Tax Service. Khaligov shared these insights during the conference titled “Digital Financial Ecosystem A New Stage in Governance” held in Baku.
According to Azeri-Press news agency, a shift is planned in tax risk management strategy from post-violation measures to a preventive approach that focuses on early identification of potential risks. This transition aims to preemptively address tax risks before violations occur, thereby enhancing the effectiveness of the tax management system.
Khaligov emphasized that the integration of artificial intelligence and advanced analytical tools is a key component of this strategy. The new approach will involve AI-based analytical tools for automatic data analysis and the application of AI technologies in risk assessment models. This methodology will improve the precision of risk level assessments for taxpayers and their tax returns, enabling a more targeted approach to control measures in high-risk scenarios.
Additionally, Khaligov highlighted the use of automatic notification mechanisms to alert taxpayers about potential risks in advance. An electronic field control system, currently in pilot mode in one region, has been introduced to facilitate this process. Through this system, electronic notifications are sent to taxpayers regarding detected violations, allowing them a period to rectify these issues voluntarily before any penalties are imposed.