Journal of Tax Reform
Development of the tax administration in Russia: Results and prospects
G.A. Borshchevskiy 1, N.Z. Mossaki 2, 3
1 Russian Presidential Academy of National Economy and Public Administration, Moscow, Russian Federation
2 Federal Tax Service of Russia, Moscow, Russian Federation
3 Institute of Oriental Studies of the Russian Academy of Sciences, Moscow, Russian Federation
Abstract
The study aims to identify the milestone events in the development of the tax administration in post-Soviet Russia and to offer recommendations for its further improvement. We tested the hypothesis about the relationship between the development of the tax system and tax administration, which, once established, can play a role in the improvement of the tax administration’s efficiency. The study relies on quantitative (regression and correlation analysis, factor analysis, principal component analysis) and qualitative methods (classification, thesaurus analysis, SWOT-analysis, critical points method). We also analyzed the legal acts describing the goals (target indicators) for the development of the tax system and tax administration and propose a set of integral indices characterizing these processes. The key events (factors) for the period starting from the 1990s to the present were identified and ranked in order of importance. Their impact was investigated with the help of SWOT-analysis and factor analysis methods. We found that in the given period, there was an increase in the correspondence between the goals of the tax administration and the goals of the tax system. This means that the tax administration’s management and staff have become more motivated to upscale their priorities and to orient their activities towards public good. The analysis of indices for the given periods has shown improved performance of the tax system and tax administration. The index of tax administration development is based on four indicators. Between the 1990s and 2010s, the index grew by 13% mainly because of the expanded scope of functions of the tax administration, staff downsizing and optimization of the remuneration system. We found that there is a significant statistical relationship between the indices of development of the tax system and tax administration.
Keywords
tax system, tax service, tax authorities, tax administration, civil service, reform, SWOT-analysis
JEL classification
E62; H30; K34References
1. Strauss H., Schutte D., Fawcett T. An evaluation of the legislative and policy response of tax authorities to the digitalization of the economy. South African Journal of Accounting Research. 2020;8(4):96–126. https://doi.org/10.1080/10291954.2020.1810504
2. Tanzi V. Pellechio A. The Reform of Tax Administration. Working Paper Washington, D.C.: IMF, 1995 (No 95/22). Available at: https://www.imf.org/en/Publications/WP/Issues/2016/12/30/The-Reform-of-Tax-Administration-1180
3. Farny O., Franz M., Gerhartinger P., Lunzer G., Neuwirth M., Saringer M. Tax avoidance, tax evasion and tax havens. Department of Tax Law of the Chamber of Labour Vienna; 2015. Available at: https://www.arbeiterkammer.at/infopool/wien/Studie_tax_avoidance.pdf
4. Frampton D. Practical Tax Administration. Bath: Fiscal Publications; 1993. Available at: https://openlibrary.org/books/OL11583264M/Practical_Tax_Administration?edition=
5. Bejaković P. How to Achieve Efficiency and Equity in the Tax System? Revija za socijalnu politiku. 2020;27(2):137–150. https://doi.org/10.3935/RSP.V27I2.1675
6. Augustine A.A., Folajimi A.F., Ayodele A.L. Quality of tax services, Moderated by trust in State Internal Revenue service and voluntary tax compliance behaviour among Individual taxpayers in South-West, Nigeria. Journal of Accounting, Business and Finance Research. 2020;8(2):47–57. https://doi.org/10.20448/2002.82.47.57
7. Mookherjee D. Incentive reforms in developing country bureaucracies: lessons from tax administration. Washington, DC: World Bank; 1997. Available at: http://people.bu.edu/dilipm/ec722/papers/abcde.doc
8. Grote M. How to Establish a Tax Policy Unit. International Monetary Fund; 2019. Available at: https://www.imf.org/~/media/files/publications/howtonotes/howtonote1707.ashx
9. Bird R.M. Fiscal Decentralization and Decentralizing Tax Administration: Different Questions, Different Answers. In: Valdesalici A., Palermo F. (eds) Comparing Fiscal Federalism. Leiden: Brill Nijhoff; 2018, pp. 190–220. https://doi.org/10.2139/ssrn.2694651
10. Jang S., Eger R.J. The effects of state delinquent tax collection outsourcing on administrative effectiveness, efficiency, and procedural fairness. American Review of Public Administration. 2019;49(2):236–251. https://doi.org/10.1177/0275074018759435
11. Klun M. Performance Measurement for Tax Administrations: The Case of Slovenia. International Review of Administrative Sciences. 2004;70(3):567–574. https://doi.org/10.1177/0020852304046210
12. Güler H., Kaba H. The Efficiency of Tax Administration in Turkey. In: Economic Issues in Retrospect and Prospect. Istanbul: IJOPEC; 2018, pp. 301–316. Available at: https://www.researchgate.net/publication/327764731_The_Efficiency_of_Tax_Administration_in_Turkey
13. Vasilyev S.V. Taxation in Russia during the Transition to a Market Economy and Taxes as an Instrument of State Regulation of Economy in the Late Twentieth Century and the Early Twenty-First Century. Economy and Business: Theory and Practice. 2018;(10-1):32–41. (In Russ.) https://doi.org/10.24411/2411-0450-2018-10054
14. Shibaeva N.A., Zarudneva A.I., Sozinova A.A., Shuvaev A.V., Alekseev A.N. Restructuring of Tax Liabilities as an Upcoming Trend of Economic Diversification in Modern Russia. In: Gashenko I.V., Zima Y.S., Davidyan A.V. (eds) Optimization of the Taxation System: Preconditions, Tendencies and Perspectives. Springer; 2019, pp. 83–89. https://doi.org/10.1007/978-3-030-01514-5_10
15. Belev S.G., Sinelnikov-Murylev S.G., Sokolov I.A., Tishchenko T.V. Fiscal Policy to Address External and Internal Challenges. In: Economic Policy of Russia. Turbulent Decade of 2008–2018. Moscow: Delo; 2020, pp. 218–246. (In Russ.) Available at: https://cyberleninka.ru/article/n/glava-8-nalogovo-byudzhetnaya-politika-v-usloviyah-vneshnih-i-vnutrennih-vyzovov
16. Gromov V.V. Regional Tax Competition at Different Phases of Tax System Evolution in Russia. Financial Journal. 2020;12(1):41–57. (In Russ.) https://doi.org/10.31107/2075-1990-2020-1-41-57
17. Vishnevsky V.P., Goncharenko L.I., Nikulkina I.V., Gurnak A.V. Taxes and Technologies: Past, Present and Future of the Russian Tax System. Terra Economicus. 2020;18(4):6–31. (In Russ.) https://doi.org/10.18522/2073-6606-2020-18-4-6-31
18. Moloshnikova D.A., Baytemirova K.R. The Federal Tax Service and Digitalization. Achievements of Science and Education. 2020;(10):22–27. (In Russ.) Available at: https://elibrary.ru/item.asp?id=43069001
19. Kozaeva O.T., Dobaeva A.V. Improvement of the Forms and Methods of Organization of Debt Collection Activities of the Federal Tax Service. Journal of Economy and Entrepreneurship. 2020;(1):120–124. (In Russ.) Available at: https://elibrary.ru/item.asp?id=42686148
20. Pogorletskiy A.I., Bashkirova N.N. The dynamics of tax system and tax administration development in the Russian Federation. Journal of Tax Reform. 2015;1(1):4–24. https://doi.org/10.15826/jtr.2015.1.1.001
21. Kartashova G.N. Development of Methodology for Assessment of Tax Administration Efficiency. Nalogovy vestnik. 1999;(11):12–15. (In Russ.) Available at: http://buhi.ru/text/96961-1.html
22. Alekhin S.N. Methodology of Assessment of Territorial Tax Potential. Rossiiskii nalogovyi kur’er. 2005;(6):6–12. (In Russ.) Available at: https://base.garant.ru/5145033
23. Boyko S.V. Methodological Approaches to Research of the Tax Regulation of Innovative Activities of Companies. Journal of Donetsk National University. Series B. Economics and Law. 2020;(1):12–19. (In Russ.) Available at: https://elibrary.ru/item.asp?id=43955093
24. Kalashnikova P.P. Management of Tax Administration in Russia. Journal of Saratov State Socio-Economic University. 2009;(2):101–105. (In Russ.) Available at: https://elibrary.ru/item.asp?id=13058898
25. Moroz V.V., Moroz S.V. Indicators of Tax Administration Efficiency. Economic Problems and Legal Practice. 2018;(2):50–53. (In Russ.) Available at: https://urvak.ru/articles/probl-vypusk-2-pokazateli-effektivnosti-raboty-nal/
26. Nadtochy E.V. Methods for Assessing Efficiency of Tax Control. Taxes and Taxation. 2012;(3):21–29. (In Russ.) Available at: https://en.nbpublish.com/library_read_article.php?id=-17788
27. Mosaki N.Z. Education in government body universities: The case of the tax academy. Voprosy obrazovaniya / Educational Studies Moscow. 2009;(4):107–8 (In Russ.) Available at: https://vo.hse.ru/en/2009--4/26555190.html
28. Radcliffe V.S., Spence C., Stein M. Professional repositioning during times of institutional change: The case of tax practitioners and changing moral boundaries. Accounting, Organizations and Society. 2018;66:45–59. https://doi.org/10.1016/j.aos.2017.12.001
29. Gribnau H. Soft Law and Taxation: The Case of the Netherlands. Legisprudence. 2007;1(3):291–326. https://doi.org/10.1080/17521467.2007.11424668
30. Hainsworth R., Tompson W. Tax Policy and Tax Administration in Russia: The Case of the Banking Sector. Post-Communist Economies. 2002;14(3):277–300. https://doi.org/10.1080/1463137022000013386
About Authors
Georgy A. Borshchevskiy – Doctor of Political Sciences, State Councilor of the Russian Federation, Professor, Russian Presidential Academy of National Economy and Public Administration (82, Vernadskogo av., Moscow, 119571, Russia), ORCID: 0000-0001-9099-9847; e-mail: ga.borshchevskiy@igsu.ru
Nodar Z. Mossaki – PhD in History, Inspectorate of Federal Tax Service of Russia no. 13 for Moscow (9 Zemlyanoy val, Moscow, 105064, Russia); Senior Researcher, Institute of Oriental Studies of the Russian Academy of Sciences (12 Rozhdestvenka Str., Moscow, 107031, Russia); ORCID: 0000-0001-8268-006X; e-mail: nodarmossaki@gmail.com
For citation
Borshchevskiy G.A., Mossaki N.Z. Development of the tax administration in Russia: Results and prospects. Journal of Tax Reform. 2021;7(2):114–133. doi.org/10.15826/jtr.2021.7.2.093
Article info
Received May 27, 2021; Revised July 19, 2021; Accepted August 14, 2021
DOI: https://doi.org/10.15826/jtr.2021.7.2.093
Download full text article:
~480 KB, *.pdf
(Uploaded
25.08.2021)
Created / Updated: 31 August 2015 / 3 July 2017
© Federal State Autonomous Educational Institution of Higher Education «Ural Federal University named after the first President of Russia B.N.Yeltsin»
Remarks?
select the text and press:
Ctrl + Enter
Portal design: Artsofte
ISSN 2414-9497 (online)