Transformation of the Legal Mechanism of Taxation Under the Influence of Digitalization: Russian Case Study

Intertax. 2021. Vol. 49. No. 5. P. 435–446.

Tsindeliani I., Anisina K., Davydova M., Kostikova E., Migacheva E., Proshunin M., Lyutova O. I., Pavlova E.

This policy note considers the impact of global digitalization of the economy on public tax administration based on the example of the Russian legal system from a comparative perspective. To understand the prospects of domestic taxation mechanisms, they are considered in comparison with similar mechanisms of other states and the legal regulation of foreign countries of Europe (European Union) and the United States while respecting the initiatives and solutions of international organizations (OECD, European Commission) in the context that is examined. 

A macroeconomic assessment of the effectiveness of the use of digital tax administration is performed, and the stages of its institutional development are highlighted. Digital technologies ensure an increase in the collection of taxes and other obligatory payments, reduce labour costs for tax control, and decrease the administrative burden on businesses. 

The main approaches to the digital transformation of the modern tax system are considered and new innovative developments and digital technologies in Russia are emphasized. It is noted that, currently, the Russian tax system in the context of the development of the digital economy is moving from an electronic to a ‘proactive state’.

Keywords: tax administration, Tax audit, digital economy, electronic document management, legal tax regulation