Tax digitalization

1. Advantages of digitalization in tax system
Supervisor: Assoc.Pro, PhD Farid Mehdi
Student: Nurana Nuriyeva
Azerbaijan State Oil and Industry University
MBA Program

2. Content
Introduction
Main objective of study
Applied research methodology
Data analysis
Simulation part
Research findings
Recommendations

3. Research question
 What are the common
advantages and
disadvantages in
digitalization tax system?

4. Introduction
Digitalisation is transforming many aspects of our everyday lives, as well as the way our economy and
society is organised and functions. The breadth and speed of the change brought about by the digital
transformation is notable, and raises a large number of public policy challenges. It is also changing the
nature of policy-making itself, through the emergence of a new range of tools to support the development
and implementation of policies.

5. Main objective of study
The main purpose of
digitalization tax system is
to develop intellectual
information systems.
The subject of the study
consists of the types,
advantages and
implementation principles
of modern directions of
digitalization.
The object of
the study is the
history, diffenent
aspects of
modern
digitalization in
tax system.

6. Applied research
methodology
Correlation method
was applied as the
main research
method;
SPSS statistic
program was used as
the main software for
holding this research.

7. Data analysis

8. Simulation part
Regression model of tax data
Accordingly to regression analysis
significance F equal to 0.9983 and it
means that our hypothesis is true,
while a value higher than 0.5
indicates the null hypothesis is true.
This table means of that, the first
hypothesis null versus.
It means that, the null hypothesis of
a test always predicts no effect or
relationship between variables, while
the alternative hypothesis states your
research estimate of an effect or
relationship.

9. Simulation part (cont)
Total Tax Revenues Posterior
Characterization Results
We show how our method can be
easily extended to accommodate
theoretically interesting patterns
of taxpayer’s behaviour to
Azerbaijan digitalization system.
Our goal is to provide a
statistical framework for
combining measurement of
taxpayer preferences with tests of
population behaviour models
which used in tax system.

10. Simulation part (cont)
Total Taxpayer Year Results
Here we see the dependency
graph of e-tax users by year. As
can be seen, the rate of use varies
over the years. All these
variables depend on the ability of
the population to apply the
digitalized system and the
economic situation.

11. Simulation part (cont)

12. Conclusion (Research findings)
The number of taxpayers and their ratio to the country's population were
explained in the study. In the last part of the study, the relationship between the number
of taxpayers in the electronic tax period and tax revenues was examined with the
estimation method made with the linear trend model. The analysis revealed that
approximately 83% of the change in tax revenues was explained by the number of
registered taxpayers, while the remaining 17% required other variables. Finally, in the
analysis, it was revealed that when the number of taxpayers increased by 1, the effect of
this increase on incomes was approximately 10 Manat in local currency.

13. Recommendations
Electronic government management will enable the state to track all actions, as well as
financial and commodity flows of economic entities, which ensures honesty and
transparency, and also contributes to the development of the Azerbaijani economy.
At the same time, it must be remembered that the digitalization of any processes is,
first of all, the consent of the state to digitalization through the adoption of relevant
regulatory legal acts, and not budgetary costs.

14. Thank you for your attention!