Artificial intelligence to be used for early detection of tax risks in Azerbaijan

Azerbaijan is working on solutions that use artificial intelligence (AI) to identify tax risks early and prevent possible violations. Samir Khaligov, Acting Head of the Main Department of Tax Risk Management at the State Tax Service, said this at a conference called "Digital Financial Ecosystem: A New Stage in Governance" in Baku, APA-Economics reports.

He said the plan is to change how tax risks are managed. Instead of taking action after a violation happens, the aim is to identify possible problems early and prevent them.

"Our main goal is not to detect violations after they occur, but to identify possible risks in advance and take preventive measures to eliminate them," S. Khaligov said.

He noted that work is underway to introduce AI and advanced tools for analyzing data. Plans include using AI-based tools to analyze data automatically and applying AI technologies to models that assess risks.

This approach will help assess the risk levels of taxpayers and tax returns more accurately. It will also allow officials to focus control measures on cases where there is a high chance of a real risk.

S. Khaligov said that automatic notification systems are also being used to warn taxpayers in advance about possible risks.

In addition, an electronic system for on-site tax checks has already been launched and is being tested in one region. The system sends electronic notices to taxpayers about violations that have been found and gives them a set period to correct them.

This allows business owners to correct violations voluntarily before penalties are imposed.