Optimization of the Taxation System: Preconditions, Tendencies and Perspectives
This book addresses the optimization of taxation systems, a topic currently being explored by scholars all over the world. It puts forward a critical opinion on the problem and offers an original approach to solving it – through informatization.
The target audience of the book includes not only scholars and experts who professionally deal with taxation optimization issues, but also representatives of public authorities, and the general public. The book offers sound and practical solutions for the informatization-based optimization of taxation systems, and its conclusions and recommendations could be used in the management of tax systems for modern economic systems and in taxation optimization for specific economic subjects – individuals and organizations alike – , ensuring a broad range of practical applications.
Purpose The purpose of the work is to study the “free rider problem” in taxes and determine the probability of the fact that shadow economy in modern Russia is caused by this problem. Methodology For determining the probability of the fact that shadow economy in modern Russia is caused by the “free rider problem” in taxes, the authors conduct a complex logical analysis of information and analytical materials of the Global Financial Literacy Excellence Center, National Research University “Higher School of Economics”, the World Bank Group, PricewaterhouseCoopers, Analytical Center “National Agency for Financial Studies”, and the All-Russian Public Opinion Research Center, which contain expert evaluations of the level of financial awareness and, in particular, tax awareness in modern Russia, as well as their averaging for obtaining the most realistic picture (as of the 2018 data). Results The authors show that the “free rider problem” in taxes is an alternative (opposite) phenomenon to tax opportunism, related to unintentional or insufficiently conscious violation of tax law, which is not profitable for the state and for tax “free riders”. In modern Russia, the level of financial awareness of the population and, in particular, tax awareness is at the level of 50%. This means that there’s high probability (0.5) that shadow economy in Russia could be caused by the “free rider problem” in taxes. Recommendations For solving the “free rider problem” in taxes, the authors developed a managerial concept that ensures reduction of the volume of shadow economy, growth of tax revenues, overcoming of deficit of state budget, and more successful execution of state’s liabilities (guarantees) before the society. © Springer Nature Switzerland AG 2019.
Transition to Industry 4.0 in the 21st century takes place in the conditions of past industrial revolutions of the 19th–20th centuries, which were accompanied by transformation of the system of public production. Technologies change very quickly, creating new factors of formation of not only inter-sectorial and inter-country, but also inter-subject, communications—between the state and entrepreneurial subjects, which stimulates the emergence of a new revolutionary stage of transition of countries to the concept “Industry 4.0”. Here the authors conduct aspect analysis of actual mechanism of tax stimulation of Industry 4.0 in modern Russia as one of state tool that allows influencing entrepreneurial subjects and receiving feedback—which determines effectiveness of the system of their interaction. © Springer Nature Switzerland AG 2019.
The chapter dwells on theoretical foundations of the shadow economy, considers the types of existence and growth of the shadow sector, evaluates the scale and role of the shadow economy, and studies pros and cons of existence of the shadow economy, as well as peculiarities of the model rows of measuring the shadow economy, related to tax evasion at the national level. For adapting these methods to the regional level, correspondence of the national methods and indicators in the regional aspect is viewed, and the most adequate indicators are selected, which are presented in the form of the model of well-balanced taxation. Practical implementation of the model will allow regulating the volumes of the shadow economy for making more justified decisions on improvement of the tax policy at various levels of management. © Springer Nature Switzerland AG 2019.
Purpose This work is aimed at studying the essence of taxation management at a modern company, consideration (by the example of modern Russia) of accessible means of tax optimization, determination of related problems, and development of the optimization algorithm of conduct of taxation management at a modern company. Methodology The research is based on the existing methodology of evaluation of effectiveness of tax optimization at a company. Results In the course of complex analysis of accessible means of taxation optimization at a modern company it is determined that tax optimization is related to emergence of undesired consequences (problems) for a company, most of which have non-tax (production or marketing) nature. Neglecting these consequences distorts the expected results of tax optimization and reduces effectiveness of taxation management at a modern company. Recommendation The proprietary optimization algorithm of taxation management at a modern company allows considering not only advantages from tax optimization but also expenditures for its conduct and related risks (problems) for a company, due to which it ensures receipt of precise and authentic estimate results and guarantees high effectiveness of taxation management at a modern company. Usage of the offered optimization algorithm of taxation management at a modern company allows making the practice of tax optimization widely accessible (due to simple and clear calculations) and ensuring well-balanced management of tax and finance, production, and marketing components of entrepreneurial activities, thus leading to growth of global competitiveness of modern Russian companies. © Springer Nature Switzerland AG 2019.
Purpose The purpose of the research is to study conceptual foundations and methodology of evaluation of effectiveness of state tax policy and to determine effectiveness of state tax policy that is implemented in modern Russia. Methodology For complex evaluation of effectiveness of state tax policy, the proprietary methods, which allows combining advantages of both existing conceptual approaches and overcoming their drawbacks, is used. This method envisages evaluation of effectiveness of state tax policy through separate calculation of the value of financial indicator and values of non-financial indicators with the following unification and treatment of the received results. Results It is showed that the modern Russian state tax policy is peculiar for low effectiveness. The main reason for that is insufficiently successful implementation of the most important function of the taxation system—provision of collection of taxes for state budgets of all levels of the budget system—due to deficit of the consolidated state budget of the Russian Federation and critically large volume of tax evasion (shadow economy). Costs of tax policy exceed its positive results by more than two times, even without consideration of expenditures for state tax administration and control. In addition to this, state tax policy in Russia does not fully conform to the declared principles of stability, transparency, justice, and stimulation of national interests. Recommendations it is concluded that low effectiveness of tax policy of the state could be one of the reasons of non-optimality of modern Russia’s taxation system. That’s why increase of effectiveness of state tax policy is recommended for optimization of this system. © Springer Nature Switzerland AG 2019.