Page 16 - Azerbaijan State University of Economics

P. 16

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 1, 2017, pp. 10-22

Thanks to new approaches to state control and supervision, the focus of the
control function shifts from conducting inspections and subsequent analysis of only
the results of inspections to the analysis of additional sources (criteria).
These include the timely submission of reports, their completeness, the
consistency of data, the achievement of the indicators, the availability of automated
accounting and reporting systems and their compliance, consumer complaints,
information from other government agencies, etc.
The result of the reform of the control and supervisory sphere for 2013 - 2016
was a reduction in the number of inspections of business entities by 45%.

Figure 2. Types of inspections of business entities, 2016

During their activities, many entrepreneurs face a lot of problems associated
with the provision of various types of reporting (documents, notifications and
certificates, tax, financial and other reporting, other documents, declaration of the
composition of products, publication of data on bankruptcy, changes in ownership of
enterprises, etc.). Any reporting is, first of all, an administrative barrier, involving the
allocation of significant financial resources to pay for the cost of labor of employees
who follow instructions for completing reporting forms and study the legal
framework, the cost of external organizations and external consultancy services.
The use of information tools in the world practice of state regulation is one of
the gentle options for government intervention in business activities. At the same
time, in many developed countries of the world information tools, which are called
information obligations, are often subject to reform in the framework of regulatory
reforms.
The costs of information obligations are also the main type, which are so-
called as administrative costs of business.

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