Fiscal Burden as Factor of the Business Climate

Abstract

A conceptual approach to the ongoing reform of the state's control and supervision activity involves the identification and elimination of administrative barriers with the active participation of the business community. The paper examines the impact of the fiscal burden on business climate, identifies the main reasons for tax evasion by entrepreneurs in the Russian Federation and proposes ways of creating adequate tax relations between the state and enterprises, thus increasing business activity. The current research bases on the systematization and analysis of the results carried out annually over three years from 2016 to 2018 surveys of managers of enterprises. The surveys initiated by the regional business ombudsman and the business community. An analysis of the opinions of entrepreneurs suggests that business representatives call the high fiscal burden and falling profits due to the deteriorating economic situation as key negative factors that have a devastating effect on the business. There is an interdependence of subjective perception of the magnitude of the fiscal burden by business representatives and the objective characteristics of the business climate, which have a significant impact on the motivation and objective results of business entities.