Improvement of Tax Service Efficiency Management

Abstract

Purpose of the paper is to assess the effectiveness of the Russian tax system in comparison with the development of public service in tax authorities. We use both quantitative methods (e.g. factor analysis, principal component analysis, economic and statistical methods, econometrics, content analysis of legal acts, tabular and graphical visualization, monitoring of tax authorities’ performance indicators) and qualitative methods (comparative legal and comparative historical analysis). The main research results: we proposed a comprehensive methodology for assessing the development of the tax system and service of the Russian Federation in 1991–2018; we have tested this methodology on statistical data and calculated the indices; compiled a chronology of key events in the tax system and tax authorities development of the Russian Federation. We conclude the high degree of statistical compliance of the tax system development indices and the tax service indices. Mismatch in the dynamics of the development of the tax system and tax service in the recent period of 2014–2018 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.). Identified patterns can be used to assess the effectiveness and reform of service in the tax authorities.

Is This Tax Reform, or Just Confusion?

“…Between 1986 and 2017, the average statutory corporate income tax rate of OECD countries fell from 47.2 percent to 24.5 percent. 4 Of course, having an economic policy out of step with the rest of the world is hardly a sufficient argument for change; indeed, I imagine most supporters of the Tax Cuts and Jobs Act would not want to use this line of reasoning to justify, for example, US adoption of a national health insurance system or of a 15 percent value-added tax.…”