Interview with Mr Orkhan Nazarli, President of IOTA

"We are steadfast in our conviction that the primary focus of our presidency is to reinforce the financial sustainability of IOTA, increase the geographic coverage of its membership, and optimise the operational effectiveness of the Organisation,” said Mr Orkhan Nazarli, the President of IOTA, in a recent interview. He went on to emphasise that IOTA is built on a foundation of mutual trust and collaboration, and, together, the aim is to create a broader and more diverse ecosystem for the organisation.

Mr Nazarli, who is also the Head of the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan, has been serving as the President of IOTA since June 2025, when the State Tax Service took on the Presidency of IOTA for the 2024/2025 period at the 28th General Assembly in Budapest, Hungary. In the interview, Mr Nazarli talked about the top priorities for the State Tax Service during its Presidency, explained how his administration planned to address these priorities, examined the biggest challenges IOTA will face in the coming years, and shared his thoughts on why IOTA is important both now and in the future.

Grab a coffee, take a break, and dive in!

- Erika Szabó/IOTA (ES): Could you please introduce yourself briefly and tell us a bit about your professional background?

- Orkhan Nazarli/President of IOTA (ON): I am Orkhan Nazarli, Head of the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan. You may consider me a public official, but I believe there is more to who I am than my title suggests. By nature, I am always eager to acquire new knowledge and embrace change In my view, true intelligence isn’t just about gathering information — it’s about applying it correctly, adapting innovations, and inspiring others. My life’s purpose is to grow continuously and make a positive impact on society. 

-  ES: How would you describe yourself in one word?

-  ON: If I had to choose one word, it would be “renewal.” Life constantly brings new stages and experiences, and I am a person who is open to development and innovation.

-   ES: How did you get involved in taxes? Could you briefly share the story behind your decision to pursue this field?

-  ON: I have been leading Azerbaijan’s tax service for four years, having joined the system in 2018. Before that, I held key positions in the education sector, and much of my work experience comes from the private sector where I served in various roles at an international audit firm. This experience, along with a certification program I completed in the United States of America, played a major role in developing my expertise in taxation. I find this field interesting because it offers both an intellectual challenge and an opportunity to contribute value to society.

-  ES: How would you describe the nature of your work at the State Tax Service?

-  ON: As the Head of the State Tax Service, I am responsible for managing the organisation, supporting our employees, and contributing to the development of our country’s tax system as a unified team. My role is to ensure that tax administration is fair, efficient, and transparent — a key factor for our nation’s economic growth.

We work as a unified team and place great importance on fostering a collaborative environment, both internally and externally. This means maintaining close cooperation with business entities, other government institutions, and strengthening our ties with international tax organisations. Global challenges have created new obligations for national tax systems, and to meet these, we mobilise our internal human resources.

I believe that good management is not about controlling everything alone; it is about having team spirit and listening to employees’ suggestions. We have to mobilise our resources for a better business environment. I would like to express my gratitude to all my colleagues and international partners for their contribution to these efforts.

-   ES: What is your guiding motto?

-   ON: The pace of life has accelerated, making it hard to keep up sometimes. My guiding motto is: “Remain stable in a changing world, yet continuously develop.” We must adapt to rapid changes while preserving our values and principles. In my opinion, it’s important to always learn, gain experience, and explore new paths — built on a foundation of honesty and integrity.

-   ES: What is the most recent lesson you have learned in your career?

-   ON: Every day presents new situations and challenges, and even the best plans can change unexpectedly. The most important lesson I’ve learned is to remain open to change, adapt quickly, and strive for the best possible outcome. This approach has helped me become stronger and more resilient, both professionally and personally.

-  ES: What do you value most in your colleagues?

-  ON: Responsibility, honesty, professionalism, innovativeness, initiative, collaboration, humanism, and loyalty are the most important qualities I value. It is crucial for a tax officer to possess these moral qualities. I highly appreciate colleagues who embody these traits and demonstrate a strong commitment to shared goals. All of these contribute to creating a supportive and effective environment that drives collective success and teamwork. When colleagues remain dedicated to the team’s objectives, it determines the organisation's overall success.

-  ES: Why did the State Tax Service of Azerbaijan apply for the Presidency of IOTA?

-  ON: Azerbaijan is actively engaged in forming partnerships with international organisations and global initiatives. The cooperation between the State Tax Service and the Intra-European Organisation of Tax Administrations (IOTA) has a solid foundation with proven outcomes. Since joining IOTA in 2002, we have closely monitored reforms in modern tax systems and implemented best practices. Our country’s goal of improving tax administration aligns seamlessly with IOTA’s mission to support cooperation among European tax administrations. On the other hand, we are also creating a favourable environment in our economy for achieving medium and long-term goals through reforms in the national tax system and close collaboration with international organisations. With Azerbaijan being actively represented at IOTA events and having gained significant experience in its activities and organisational relations, applying for the Presidency was a natural step. I do believe that during our Precedency we can contribute to activities and development of IOTA.

-   ES: What makes the State Tax Service unique in this role?

-  ON: Before us, the presidencies of Hungary, Georgia, and Switzerland achieved very effective and results-oriented work within IOTA. We are committed to continuing that work and making valuable contributions to both IOTA and the tax systems of its members. In today’s globalised and digitalised world, successful transformation of tax administrations depends on strong international cooperation. Since this transformation is a global challenge, each country has its own experience in this process. We do not seek uniqueness for its own sake; rather, we are determined to mobilise our resources and turn innovative ideas into reality — giving us grounds for optimism about the future.

-  ES: What are the top three priorities for the State Tax Service’s Presidency of IOTA, and how will your administration address them?

-  ON: We are steadfast in our conviction that the primary focus of our presidency is to reinforce the financial sustainability of IOTA, increase the geographic coverage of its membership, and optimise the operational effectiveness of the Organisation. To this end, we have already put forward a series of strategic proposals aimed at achieving this objective which are currently under review by the relevant IOTA Working Groups. 

On financial sustainability, we propose introduction of a equitable methodology for calculating membership contributions, exploring viable investment opportunities to optimise the utilisation of IOTA’s financial reserve, and the establishment of IOTA Tax Centres in various countries.

On increasing the geographic coverage of the membership, we propose expanding IOTA’s network and strengthening its global impact by attracting new full and associate members. Furthermore, in order to increase IOTA’s geographical reach and overall membership contributions, we propose an amendment to the IOTA Charter to allow associate members the opportunity to apply for full membership after a minimum of two years of associate membership.

On optimising operational effectiveness, strengthening cooperation with research institutions and creating Tax Academy and establishing a strategic partnership with the OECD, which operates a network of Multilateral Tax Centres (MTC) across various countries.

-   ES: What inspires you most in this process and what were your aspirations when you took over the Presidency?

-  ON: We have built an excellent team, and the enthusiasm for collaboration, professionalism, and growth within this team is a constant source of motivation. Forming a team is just the beginning — supporting and developing it is essential, and working together is success in itself. Although IOTA members come from different countries, cultures, and backgrounds, our common goal unites us like a family. A collaborative environment built on mutual trust lights the way to our goals. Together, we intend to build a broader and more diverse ecosystem for IOTA.

-   ES: What do you think about the future of taxation?

-   ON: The future of taxation will be shaped by technological innovation, alignment with global economic trends, and social responsibility. Tax systems worldwide face challenges such as rising inequality, digitalisation, and climate change, which require us to adapt to effective, fair, and efficient solutions. The integration of digital technologies like artificial intelligence, blockchain, and data analytics into tax administration is already underway and will likely accelerate. As economies evolve in a globalised environment, digital businesses that operate across borders will need more international coordination and harmonised tax regulations. To boost trust in the system, tax administrations are also likely to emphasise taxpayer support services. Overall, the future of taxation will be defined by technological advancements, global economic shifts, and increased demands for environmental sustainability.

-  ES: In your opinion, why is IOTA important now and in the future?

-  ON: Over the past decades, IOTA has become a leading opinion-forming body in Europe’s international tax community. It helps tax administrations identify, discuss, and resolve operational challenges by providing a platform for sharing best practices and exploring solutions. IOTA also supports tax administrations by bringing issues that could shape the future of taxation onto the conference agenda and by presenting promising solutions. With more significant changes in international tax rules and systems than ever before, IOTA is well positioned to meet its members’ evolving needs through modern tax services and measures. The global economy has entered a new phase—one marked by emerging challenges that set new goals for tax systems. We plan to shape IOTA’s activities in the medium term in line with these ongoing changes and, in addition to strengthening our ties with European countries, we consider it important to build relations with tax authorities from other regions.

-  ES: What are the biggest challenges IOTA faces in the coming period?

-  ON: The main challenge for IOTA is maintaining the organisation's financial sustainability. Only a financially sustainable IOTA can continue to effectively fulfil its core functions and provide value to its members.  Another main challenge for both IOTA and its member countries is related to global trends. These challenges are primarily linked to technological advancements, changing economic conditions, and the requirements of international cooperation.

These include the rapid development of the digital economy, online commerce, digital services, and the adaptation of cryptocurrencies to tax policies. Such activities are often difficult to measure with traditional tax regulations and require the implementation of new, more flexible, and advanced tax mechanisms. Another major issue is the fight against tax base erosion. In Europe, combating tax base erosion and tax avoidance remains a top priority. Tax administrations are striving to address the challenges related to how multinational corporations and wealthy individuals evade tax laws. This also raises the issue of tax harmonisation and ensuring legal compliance within the European Union. Another critical priority is restructuring tax policies to combat climate change and promote the green economy. This requires tax administrations to implement new tax formats that support environmental initiatives. The introduction of tools such as “green taxes” and carbon taxes is one of the significant challenges tax authorities face.

IOTA members are also trying to adopt new technologies (such as artificial intelligence, blockchain, and other digital tools) to make tax collection and control systems more efficient. However, legal, technical, and social challenges may arise during the development and implementation of these technologies. Finally, it is essential to align tax policies at the international level and strengthen cooperation between tax administrations. The adoption of global tax agreements and cooperation among European countries is crucial, particularly in preventing tax optimisation strategies used by multinational corporations and taxpayers benefiting from “tax havens.”

In this regard, IOTA carries a significant responsibility. It must support its members in navigating these processes and help them establish a solid roadmap by sharing progressive experiences. It is crucial for IOTA, as an international organisation, to always stay one step ahead in this field.

-  ES: What does IOTA mean to you and how does it feel to collaborate with them?

-   ON: IOTA is a significant initiative for cooperation and coordination among tax authorities of European countries. Its functions are designed to improve the efficiency of tax administration, promote mutual understanding, and share best practices. For me, IOTA represents the power of collaboration in a field where tax laws and practices can vary widely from one country to another. By providing a platform for exchanging knowledge, expertise, and tools, IOTA greatly supports efforts to combat tax evasion, improve revenue collection, and establish fair and efficient taxation systems. Collaborating with IOTA creates unique opportunities to share insights, develop best practices, and work on innovative solutions that help shape the future of taxation in our increasingly interconnected world. It is an honour to be part of an organisation that values collaboration, innovation, and continuous learning, and I feel a strong sense of responsibility to build on established traditions while proactively assessing risks and making sound decisions.

-  ES: If you didn’t work in the tax office, what would be your perfect job?

-  ON: I would work in public administration. Working in this field is one of the most effective ways to serve society and uphold social responsibility. I believe that my management skills could be widely applied in this sector, which would be a valuable experience for both my personal and professional development.

-   ES: When you need motivation the most, where do you look for it?

-   ON: I primarily draw motivation from within by reviewing our goals, focusing on our successes, and engaging in positive discussions with my colleagues. Additionally, as someone who leads a large team, the impact of our decisions – along with the guidance and recognition from senior leadership – provides significant emotional strength and inspiration.

-  ES: Do you have any motivational messages for the IOTA team?

-  ON: I would like to thank each member of the IOTA team for the support you have shown throughout our presidency. You are a professional and dedicated team, and every step you take is vital to building a strong and fair tax system for the future. No matter how great the challenges are, I truly believe that through perseverance and collaboration, we will achieve great success. By working hard and moving forward together, we will succeed.