Twinning Project Performance Report for 2018

Ms. Theodora Messini: Our approach to project implementation was based on the following priorities:

  • Deep understanding of the issues involved by studying the existing documentation and through extensive collaboration between our assigned team and the local experts in BC.
  • Realization of project deliverables, custom-tailored to suit the BC’s particular needs. The method of work was mostly interactive, with a focus on time and cost-efficiency and the sharing of best practices from Greece and other EU member states to the BC. This involved the exchange of information, know-how, best practices, and experiences, with the target group of local experts. Early planning and proper management were used to achieve tangible, sustainable, and timely results. We achieved those aims by coordinating five workshops, five specialized training sessions, and three study visits.
  • Exploitation of the project deliverables by using appropriate mechanisms for feedback, evaluation and improvement. In this respect, the role of the RTA and RTA counterpart as well as the PLs in coordinating and ensuring communication and commitment both between the core project team of experts and the local experts and their administration was crucial.
  • Selection of experts based on their skills, capacities and capabilities with a focus on maintaining transparency and gender balance.

In 2018 five workshops were held and experts from Independent Authority for Public Revenue (IAPR) of the Hellenic Republic and their counterparts from the Ministry of Taxes of the Republic of Azerbaijan have developed:

  • the “Transfer Pricing Methodology Guidelines” and the “Transfer Pricing Rules”, based on the OECD TP Guidelines, BEPS Actions, relevant EU Guidance, and international best practices. Both ready-for-implementation deliverables include the knowledge gained through the seminars performed and have been approved by the Minister of Taxes; Implementation Package of CbCR in the Republic of Azerbaijan, including a road map as well as primary and secondary legislation, confidentiality and data safeguards aspects, and frequently asked questions for the taxpayers;

  • TP auditing process for specific sectors and transactions according to current needs of the Ministry of Taxes of the Republic of Azerbaijan.

Mr. Jeyhun Ismayilov: The Ministry of Taxes of the Republic of Azerbaijan targeted to involve tax officials from national, regional and central tax offices of the Ministry of Taxes. Progress among attendees was highlighted through tests and a target group of 16 tax officials was selected among 41 participants. This target group will apply the theoretical and practical/audit procedures in the Republic of Azerbaijan that will be transmitted during the twinning program.
The educational approach was implemented according to the agreed training program covering the theoretical framework through practical examples and case studies and delivering training sessions performing real case scenarios for audits.
During the first year of the project (2018) five seminars have taken place giving the opportunity to tax officials to be familiar with the most important concepts of TP provisions. 
Furthermore, the target group of the tax officials of the Ministry of Taxes paid three study visits to tax authorities of EU Member States, including the Independent Authority for Public Revenue (IAPR) of Hellenic Republic, the Federal Ministry of Finance of Austria and the Federal Ministry of Finance of Federal Republic of Germany. These study visits aimed to provide practical insight on TP issues, APA mechanism and CbCR, as well as in TP risk analysis and auditing process.
Both Ms. Messini and Mr. Ismayilov would like to thank the Twinning Administrative Supporting Team Ms. Babayeva Gultakin, RTA Assistant and Mr. Karimov Emil, RTA Assistant-Interpreter/Translator for being both the best administrative professionals that added value to the work performed in ways that make them critical to our project success.

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