Taxes and Taxation - rubric ORGANIZATION AND METHODS OF TAX CONTROL

Abstract: The article includes analysis of characteristic features of the companies of international business. It includes review of existing approaches to understanding of rights of tax bodies in the sphere of control of taxpayers’ deals, as well as various principles of establishing market prices. The author comes to a conclusion that definition of “profit typical for this sphere” is not characteristic of market economy, moreover, it’s almost impossible to establish it in the current conditions. Keywords: FTI, control, offshore, price, income, principle, control, dispute, court, arbitration.

Abstract: Professional evaluators become very important in the work of tax bodies, when there’s need to define market price of goods (works, services). This article draws attention to the possible changes in the mechanism of proving market prices for goods (works, services) by the tax bodies, when realizing control measures. The conclusions of the author are simple. The tax bodies shall not define market prices by the means of Art. 40 of the Tax Code, rather they shall contact evaluators. Keywords: FTI, evaluation, evaluator, price, goods, principle, control, court, arbitration.

Abstract: The author describes legal and organizational bases for the interaction of the internal affairs bodies and FTS in the sphere of fighting tax offences and crimes. Keywords: FTS, MIA, offence, crime, interaction, control, militia, investigation activity

DOI: 10.7256/2454-065X.2018.2.25714

Abstract: The subject of the research is the mechanism of interaction between tax authorities and internal affairs bodies aimed at discovering illegal schemes of tax avoidance in the process of tax control. The purpose of this article is to define drawbacks and gaps in the aforesaid process as possible factors that may reduce efficiency of their joint efforts. The author pays special attention to the place and role of internal affairs bodies in the process of tax control and tax relations in general. In the course of her research the author has used the following research methods: economic statistical, historical logical, graphical methods and systems approach that allows to comprehensively study the process of interaction between tax authorities and internal affairs bodies. The author's contribution to the topic is that she defines and describes a number of problems that may arise in the process of their interaction and offers solutions of these problems. As a conclusion of the research, the author emphasizes the need to clarify the status of internal affairs authorities in tax control as well as the need to involve internal affairs bodies in tax relations.

Keywords: investigative authorities, tax authorities, internal affairs agencies, interagency cooperation, on-site tax inspection, tax control, tax evasion, tax crimes, material damage, effectiveness tax control

DOI: 10.7256/2454-065X.2023.6.69373

Abstract: The control of the tax authorities over the correctness of the application of tax benefits and preferences aimed at supporting and stimulating various types of economic activity has a goal to put a barrier to possible abuses and fraud. In the process of implementing tax policy, attention should be paid to the analysis of the practice of applying and administering tax preferences established by tax legislation. The relevance of the research topic is determined by the need to determine the forms and methods of tax control for corporate income tax, within which the legality of the application of tax preferences is checked. The subject of the study is the tax control of the application of income tax preferences at the present stage of socio-economic development, as well as the transformation of forms and methods of tax control in the context of digitalization of the economy. The methodological basis of the study is the methodology of the system paradigm, the logical-epistemological method of cognition, the unity of structural and functional analysis of the problem. The methodological basis of the research is the ascent from the abstract to the concrete, the relationship between the general and the special, the dialectical and hypothetical research method, scientific abstraction and forecasting, analysis and synthesis, induction and deduction. As a result of the study, the methodology for conducting an on-site tax audit on income tax was determined, within the framework of which tax control measures are carried out to prevent abuse of preferences for this tax. The most popular trend of tax control is also identified - the digitalization of the work of tax authorities, which can lead to an increase in the number of tax revenues. In addition, in order to increase the effectiveness of tax control over the application of corporate income tax preferences, this article presents proposals regarding the rational and optimal management of income tax preferences, among which, for example, it is proposed to study the possibility of replacing some preferences with direct subsidies, which are subject to the budget control procedure, for budgetary transparency.

Keywords: digital economy, digitalization, on-site tax audit, tax audit, automated control system, methods, forms, preferences, corporate income tax, Tax control

DOI: 10.7256/2454-065X.2013.5.2400

DOI: 10.7256/2454-065X.2023.4.39931

Abstract: The subject of the study is the economic and tax relations that arise in the process of tax control of declarations in the form 3-NDFL. The aim of the study is to develop theoretical provisions in terms of improving the tax control of personal income tax based on changes to the form of a tax return and the development of methodological tools for a desk tax audit using cloud technologies. To achieve this goal, the following tasks are defined in the work: to identify the problems of a desk tax audit of declarations in the form of 3-NDFL, in which a deduction for the education of children is declared; develop new control ratios to automate the verification process. The scientific novelty of the study lies in the improved method of in-house tax audit of the tax return on personal income tax, in which the deduction for children's education is declared, based on cloud technologies and taking into account the total amount of the social tax deduction under code 321 in the context of SNILS, reflected in the developed form of the card calculation of deductions. The introduction of this mechanism into the practical activities of the tax authorities optimizes and reduces the complexity of business processes, increases the efficiency of control functions and tax administration in general, and also corresponds to the implementation of the measures specified in clause 2.2 Strategic map of the Federal Tax Service of Russia for 2020-2024.

Keywords: improvement of tax control, unified Federal Data Storage, fns strategic map, digitalization, social deduction, personal income tax, tax declaration, tax audit of the declaration, tax control, tax administration

Abstract: Exercising of rights of tax authorities as a part of fi eld tax inspection affects the rights of a taxpayer – physical entity. Assignment and conduction of fi eld inspections do not only infringe the rights of physical entities under the Constitution of the RF and Tax Code of the RF, but also lacks the legal nature and purpose. Field inspection of physical entities without additional (i.e. peculiar for this type of inspection) eligibility makes it just another in-offi ce inspection. Moreover, the ‘fi eld’ status allows to apply a jurisdictional act to deal with the judicial act which is based on the results of the hearing of the disputes regarding an in-offi ce inspection. (At the present time, such cases are viewed by the Constitutional court).

Keywords: studies of law, taxes, taxation, fi eld, tax, inspection, physical entity, illegal.

DOI: 10.7256/2454-065X.2018.9.27455

Abstract: The subject of the research is the efficiency of on-site inspections and the main areas of improvement at this stage. The authors examine factors that influence the efficiency of tax inspections and guarantee the accurate performance of the taxation control system. The authors define the most important indicator of inspection efficiency. This is the productivity of a tax inspection that depends on the quality of the methods applied by tax inspectors during inspections. The authors emphasize the need to create an efficient system of taxpayer selection, perform in-depth pre-inspection analysis and implement improved software products that allow to make the most of limited resources of tax inspection and to significantly increase the volume of tax revenues into the budgets of all levels. The analysis of on-site inspection efficiency was based on general research methods (observation, logical analysis, economic analysis, complexity, analogy) and special research methods (comparison and generalisation, selection and grouping). The authors' contribution to the topic is their recommendations on how to improve efficiency of on-site tax inspections based on the analysis of their results, in particular, the amount of additional tax charges based on the result of on-site inspections in the consolidated budget of the Russian Federation including that at the regional level. The authors analyze the productivity of on-site tax inspections, changes in their number, debt in tax revenues for the Russian Federation treasury and constituent budget including tax payable added as a result of on-site tax inspection at the regional level (the case study of the Republic of Dagestan).

Keywords: efficiency, tax legislation, tax accounting, audit of contractors, taxpayer, tax authority, on-site inspection, control, tax, the amount of additional charges

Abstract: The article is devoted to the problem of performance assessment of planning as a part of preparation for a field tax inspection. The author reveals the insufficient theoretical and practical development of the issue and proves the significance and necessity in performance assessment as a tool for developing the planning system. The author also summarizes the requirements for establishment of the system of key indicators of performance and efficiency of tax inspection planning and the settled practice. The author also suggests and proves her own assessment method aimed at obtaining justified results and discovering the internal reserves for further improvement of the planning system. The author also describes the scope of her method and areas of application at different levels of the tax control planning.

Keywords: tax control, tax inspections, planning system, method of performance assessment.

DOI: 10.7256/2454-065X.2019.3.29569

Abstract: The subject of the research is the efficiency indicators of interaction between tax authorities and internal affairs bodies of the Russian Federation in the process of tax control, in particular, as part of on-site and desk tax inspections. The aim of this research is to develop an approach to evaluation of mutual activity of supervisory bodies through the analysis of existing methods of tax control evaluation and to create the system of indicators that allow to evaluate the level and quality of mutual work of two bodies. In the course of the research the authors have applied the following research methods: analysis (historical logical, statistical, systems approach), synthesis, deduction, induction, comparison, generalisation, formalisation as well as graphic and table methods of information visualisation. The authors' special contribution to the topic is the development of the sysdtem of indicators that describe interaction between tax authorities and internal affairs bodies as part of tax inspections. The main conclusion of the article is that for complex evaluation of the mechanism of interaction of aforesaid bodies in the process of tax control, it is necessary to apply the approach that is based on calculations of relevant indicators of both efficiency mark and performance evaluation.

Keywords: performance evaluation, tax authorities, law enforcement bodies, interaction, desk tax inspection, on-site tax inspection, tax control, efficiency mark, material damage, tax crimes

DOI: 10.7256/2454-065X.2020.6.33147

Abstract: This article examines the peculiarities of taxation of vehicles, as well as the fiscal role of transport tax in the budget revenue of the constituent entities of the Russian Federation. Analysis is conducted on the overall dynamics of tax proceeds on transport tax into the budget system of the Russian Federation. Assessment is given to tax collection, as well as to the changes in structure of transport tax taxpayers on the federal level for the period from 2016 to 2019. Particular attention is turned to the role of tax rates and deductions on transport tax in formation of regional budget revenues. The author also analyzes tax proceeds, tax structure and tax base on transport tax on the regional level for the period from 2016 to 2019 (on the example of the Republic of Dagestan). Recommendations are made on the improvement of transport tax on the federal and regional level with regards to establishment of detailed differentiation of tax rates, application of reducing and increasing coefficients, as well as measures for improving the quality of tax administration of transport tax. The author also proposed measures aimed at full implementation of the principles of justice and proportionality of taxation in the context of calculation and collection of transport tax. The main results consists in the proposed recommendations on improvement of mechanism for calculation and collection of transport tax and enhancement of its current role in formation of regional budget revenues.

Keywords: measures, debt, collection, load, region, rates, budget, transport, taxes, improvement

DOI: 10.7256/2454-065X.2015.1.12564

DOI: 10.7256/2454-065X.2015.1.66030

Abstract: The study focuses on economic relations arising in the process of control over the execution of tax obligations by agricultural producers in Russia. The control over execution of tax obligations by agricultural producers in Russia is a complex system of interconnected and interdependent elements between the taxpayer — agricultural producer — and the state and it is based on the convergence of tax functions and elasticity of the tax system. In authors’ opinion the most effective methods of monitoring the fulfillment of tax obligations by agricultural producers should include cross-audit and mutual control method where several documents reflecting the same or interconnected operations are examined. Thus, there are many different methods of tax control but it is necessary to keep improving theoretical and methodological support for the priority areas of control over the fulfillment of tax obligations by agricultural producers taking into consideration specific features of the industry, namely the seasonality of production, dependence on weather, specialization and specific features of the means of production. The methodological basis of the study includes fundamental concepts disclosed in the works of domestic and foreign scholars, legislative and regulatory acts of state authorities, federal laws, decrees of the President and RF Government Regulations, materials of scientific and practical conferences on the issues of taxation of agricultural producers. The work uses an abstract logic, monographic, statistical, economic and other methods as research tools. It is expedient to identify four factors that potentially impact on the amount of the tax debt in agriculture, namely the rate of economic growth; number of unprofitable enterprises in the economy; nominal fiscal burden on enterprises; the share of exports. As mentioned above, the most important feature of agricultural production which should be taken into account by the tax system but it is still not reflected in the unified agricultural tax is seasonality of production and mismatching of the peak expenses time and time of revenues receipts. One of the principles formulated by A. Smith is the “principle of convenience and proper time of tax collection for the taxpayer.” According to this principle, each tax should be levied at a time or in a manner that is most likely to be convenient for the taxpayer. It is a distinguishing feature of the agricultural sector but the inadequacy of the tax system leads to a steady accumulation of farmers’ debts resulting from penalties and interest, in spite of frequent write-offs and restructuring. All over the world taxes on agriculture are paid in individual income tax regime for a year and the payment is made by installments every 3 months.

Keywords: tax obligation, agricultural producers, tax control, preliminary control, current control, subsequent control, off-site tax inspection, cross-audit, tax debts, unified agricultural tax (UAT) .

DOI: 10.7256/2454-065X.2018.4.26092

Abstract: The subject of the research is the process of selecting corporate taxpayers (enterprises) for on-site inspections. The object of the research is a corporate taxpayer (enterprise). The aim of the research is to develop the economic expediency criterion that, when being violated, could be used as an alarm to plan an on-site inspection. The research method is the construction of dynamic standards, i.e. simultaneous inequalities that arrange various indicators (including non-homogenous) in order depending on their pace of growth. Dynamic standards are based on corporate economics patterns and present the best organizational mode for an enterprise which can be taken as the economic expediency criterion. Ranking enterprises depending their compliance to this criterion can be viewed as a desired one to be used in the process of selecting taxpayers for on-site inspections. As a result of their research, the authors offer their own method of selection of corporate taxpayers (enterprises) for on-site inspections depending on the economic expediency criterion, and make a list of major Russian stevedoring companies for on-site inspectios. The scope of the application of these results covers the following: planning the sequence of corporate taxpayers that require on-site inspections by the tax authorities according to the econolmic expediency criterion; and discovery of hidden trends in corporate economics that may be used as alert indicators to be used for the purpose of tax optimization.

Keywords: stevedore companies, economic indicators, tax audits, planning of on-site inspections, business laws, economic expediency, dynamic standards, pre-test analysis, rates of growth, dynamics of indicators

DOI: 10.7256/2454-065X.2014.2.11383

DOI: 10.7256/2454-065X.2014.2.64056

Abstract: The subject matter of the present research article is the relation between tax risks and parameters of the financial status of economic entities in the sphere of gas supply as well as direct tax risks of gas-supply enterprises and their evaluation methodology. The purpose of the research article is to define the risk status of taxpayers in the sphere of gas supply. Based on the author, application of the ‘Public Criteria for Independent Risks Evaluation Used by Tax Authorities in Field Tax Inspections for Taxpayers’ set forth by the Order of the Federal Tax Service of the Russia Federation No. ММ-3–2/467@ issued on October 14, 2008 within the framework of tax control over major taxpayers without taking into account peculiarities of their sector does not guarantee accurate and valid results when defining the level of the aggregative tax risk. Research methodology of the research includes dialectic-materialistic method of understanding objective reality and associated general and private scientific methods such as comparison, synthesis, analysis, deduction and induction. The author of the article offers a number of financial ratios to be used as indicators of dependability of gas-supply enterprises as taxpayers. The results of evaluating these indicators for enterprises in the Central Federal District, Western Siberia and Far East create grounds for making a conclusion that evaluation of the tax risk of gas-supply enterprises by the means of comparing actual values of financial ratios with their average value for this economic sector including production and distribution of gas, water and electric energy (as well as for the gas supply sector) is ungrounded and inconsistent. It is useful to define standard parameters of the financial status of economic entities as the criteria of the permissible level of tax risk only in case of particular sub-sectors of gas supply. According to the author, objective definition of the risk status of a taxpayer means comparison of the financial indicator with the average values of associated ratios for gas distribution enterprises or legal entities conducting the natural gas transmission.

Keywords: gas supply, tax risks, financial ratios, initial cost of the gas pipe line, investment activity, profitability, financial sustainability of an enterprise, assets turnover, deferred tax liabilities, tax burden.

DOI: 10.7256/2454-065X.2015.4.14287

Abstract: Tax control provides timely and complete flow of tax revenues in the budget of the Russian Federation. One of the most effective forms of tax control is on-site tax inspections, as many violations in the sphere of tax collection can be detected only in the course of their implementation. However, such inspections require careful selection of taxpayers. The aim of the article is to analyze the current practice of on-site tax inspections and to outline possible measures for planning, organizing and realization of such inspections. The author uses the methods of analysis and synthesis, scientific abstraction, comparison, generalization and other scientific methods. The article analyzes results of on-site tax inspections held by Russian tax authorities and reveals several peculiarities of the methods of a test inspection that are based on a qualitative choice of the subject of such an inspection. The author gives proof of reasonability of application of modern information technologies in the process of organization and carrying out of such inspections.

Keywords: tax risk, planning, tax payer, pre-verification analysis, tax control, tax authority, on-side tax inspection, automation, effectiveness, tax violation

DOI: 10.7256/2454-065X.2015.4.66415

Keywords: tax risk, planning, tax payer, pre-verification analysis, tax control, tax authority, on-side tax inspection, automation, effectiveness, tax violation

DOI: 10.7256/2454-065X.2013.5.62931

Abstract: Field tax audit can be roughly divided into two halves. The first half takes place in the company’s office, which is searched for evidence of tax offenses (which is often found), and the second half begins after they’ve left and initiated procedure. By applying the Pareto, or the 80/20 principle, according to which a small part of applied effort results in the major part of the outcome, we realize that the first half, taking 80% of our time and patience, results in 20% of the procedure’s output; thus, the majority of our attention should be focused on the second half – the procedure itself, which involves work with tax organs and solving of disputes.

Keywords: Taxes and taxation, strategy, verification, tax, tax organs, documents, Ministry of Finance, codex, courts, organization

DOI: 10.7256/2454-065X.2016.5.17760

Abstract: Modern financial and economic situation in the country indicates that the prospects for further reductions in tax revenues and, consequently, budget revenues are becoming more real. Under these circumstances tax risks, risk factors and risk minimization should be the priorities. The author of the article examines tax risks from the perspective of the state, i.e. as potential financial losses due to the shortfall in tax revenues into the budgets of the respective levels of the budget system. The author of the article emphazises the need to monitor tax risks when planning tax revenues and to manage these tax risks in order to minimize their impact. The researcher has also analyzed control activities conducted by the tax authorities of the Republic of Mordovia, in particular, efficiency of field tax audits, and investigated the most common options and schemes of tax evasion that increase tax risks. The author offers her own method for detecting, identifying and minimizing the negative impact of risks on the level of tax revenues into the budgetary system of the country. The author's method consists of the following four successive stages: 1) identification of tax risks; 2) assessment of tax risks; 3) making management decisions; 4) monitoring the implementation of management decisions.

Keywords: risk, tax, tax inspection, tax abuse, additional charge, identification, risk assessment, risk factors, risk minimization, risk management

DOI: 10.7256/2454-065X.2016.5.67741

Keywords: risk, tax, tax inspection, tax abuse, additional charge, identification, risk assessment, risk factors, risk minimization, risk management

DOI: 10.7256/2454-065X.2014.10.13234

DOI: 10.7256/2454-065X.2014.10.65626

Abstract: Being one of the most efficient types of tax control, field tax inspections are meant to ensure good performance of tax inspection authorities. However, fiscal performance has decreased in many regional inspections lately and tax authorities have to search for ways to improve efficiency of field inspections. On the one hand, it is necessary to detect violations committed by taxpayers and to arrange for additional charging of tax payments to the budget, and on the other hand, it is necessary to reduce costs on such inspections and improve their parameters. All this creates the need to improve effective methods of planning field tax inspections. The main research methods used by the author include monographic research, retrospective analysis, practical experience, expert evaluation method and methods of economic, econometric and economic-mathematical analysis. The authors have provided the general description of legal aspects of tax control and have shown the importance of field tax inspections as the main form of tax control. The authors carried out evaluation and analysis of the efficiency of field tax inspections performed by the Federal tax agency’s inspectorate of Penza and defined the dependence of tax control performance on the number of field tax inspections. The authors have also diagnosed strategies used by the tax authority, defined the optimum criteria of their performance and offered the model of improving field tax inspections form the point of view of getting the best financial benefit.

Keywords: tax control, field tax inspection, diagnostics, analytics, modeling field inspections, planning, improvement, tax inspection, additional charging, taxes and levies.

DOI: 10.7256/2454-065X.2014.12.14100

Abstract: In this paper, a comparative analysis of such definitions as: internal corporative control and internal audit, internal control and tax state tax control is made. Author defined elements and goals of the system of internal control in the tax business entities. The analysis carried out on the basis of Russian and Ukrainian legislation. The author also examines the foreign examples of legal regulation and practice of internal auditing and monitoring, as well as their implementation within the framework of economic activity of enterprises. An analysis of the internal structures of enterprises competent to conduct internal control and audit is undertaken by the author. To evaluate the effectiveness of control procedures author offered special rates and forms of control analytic statements, which are recommended to be used by members of the internal control of the tax entity. The results can be used both in theoretical studies to justify terminological apparatus of internal fiscal control and in the practice of internal controllers (internal audit). It is concluded that the successful implementation of fiscal policy in modern conditions is impossible without an effective system of internal control.

Keywords: internal control, model COSO, internal tax control, internal audit, internal control system, tax control, tax monitoring, horizontal monitoring, auditor's working papers, minimization of tax risks

DOI: 10.7256/2454-065X.2014.12.65983

Abstract: The paper presents a comparative analysis and clarifies such definitions as internal control and internal audit, internal tax control and state tax control. Also, it establishes the main elements and objectives of the internal tax control of a business entity. The analysis is carried out on the basis of Russian and Ukrainian legislation. The authors examine the foreign experience in legal regulation and internal auditing and control within the framework of economic activity of enterprises. The study conducts an analysis of the internal structures of enterprises whose competence includes conducting internal control and audit. The author suggests special indicators and forms for control analytic statements to be used to evaluate the effectiveness of control procedures by members of the tax internal control body. The findings of the research can be used both in theoretical works to substantiate the terminological apparatus for internal fiscal control as well as in practice of internal controllers (internal auditors). It is concluded that under current conditions the implementation of fiscal policy cannot be successful unless an effective system of internal fiscal control is available for the taxpayer.