Assessment of the tax system and tax authorities efficiency in Russia

Abstract

In this paper we propose a comprehensive methodology for assessing the development of the tax system and tax service of the Russian Federation in 1991—2018. Then we have tested this methodology on statistical data and calculated the indices, and compiled a chronology of key events in the development of the tax system of the Russian Federation and the development of tax authorities. Also we have verified the hypothesis of the presence of statistical relationship in the development of the tax system and tax authorities. We reveal a high degree of statistical compliance of the tax system and the tax service development indices. Mismatch in the dynamics of their development in the period of 2014—2018 is caused by both the post-crisis slowdown in economic growth and negative trends in government regulation (the emergence of new taxes, increased tax burden on businesses, etc.).

Is This Tax Reform, or Just Confusion?

“…All but the last-mentioned aspect of this Obama-era report were echoed in the Tax Cuts and Jobs Act of 2017. Also, the Obama-era report rejected the move to a pure territorial system, under which the income earned abroad by foreign subsidiaries of US multinational corporations is exempt from US tax, 5 and instead proposed a 19 percent minimum tax on foreign earnings when they are earned rather than-as was current law-upon repatriation, and a one-time tax on unrepatriated earnings.…”