BAKU, July 21 — Azerbaijani authorities are stepping up efforts to combat tax fraud and financial misconduct, launching 466 criminal cases in just the first six months of 2025, according to the State Tax Service.
The cases, spearheaded by the Main Department for Preliminary Investigation of Tax Crimes, primarily involve tax evasion, illegal employment practices, the production and sale of counterfeit excise stamps, and unauthorized money transfers.
Of these, 90 cases were closed, while 76 cases involving 86 individuals were forwarded to the Prosecutor General’s Office for indictment review. Three individuals were taken into custody and placed under arrest during investigations.
In total, the investigations resulted in 23 million manats in damages being reimbursed to the state budget. An additional 15.9 million manats were recovered during ongoing investigations and through out-of-court settlements.
The crackdown also extended beyond criminal cases. From January to June, tax authorities conducted 104 control operations across 44 businesses in sectors such as import/export, retail and wholesale trade, manufacturing, and food services. These checks resulted in financial penalties totaling 555,800 manats.
A major area of concern remains off-the-books employment. Authorities identified 126 workers engaged without formal contracts—an issue that continues to plague small and medium-sized enterprises despite ongoing enforcement.
Additionally, preventive actions related to outstanding tax debts led to the collection of 1 million manats for the state budget.
While the authorities tout these measures as part of a broader campaign to enhance fiscal discipline, critics argue that the current tax enforcement system disproportionately targets smaller firms, while major violators with political connections often remain untouched. Transparency advocates are calling for greater public oversight, standardized penalties, and judicial reforms to ensure a fairer and more accountable tax regime.
