E.V. Ovcharova

Tax Compliance in Russia: Balance between Administrative Enforcement and Stimulating Measures

2019. No. 1. P. 89–111 [issue contents]
The article is devoted to the examination of tax compliance as a system for preventingviolations of tax legislation, on the one hand, assessing and managing tax risks, onthe other hand. This approach to tax compliance allows for the examination of both:approaches, aimed at identifying violations of tax legislation, to the assessment of taxauthorities’ tax risks; and taxpayers whose goal is to optimize tax by lawful means. Taxcompliance is analyzed as a system, simultaneously, of preventive and incentive measures of administrative enforcement as well. The analysis of the system of such measures isconstructed having regard to both their purposes and the grounds for their application,the method by which they secure legal order, and the content of the measures in question.This has allowed the author to identify shortcomings in the legal regulation and in thepractice of applying the measures under consideration of administrative enforcement forviolations of tax legislation, as well as to devise and to propose in the article methods forresolving these problems. In the article, a conclusion is reached concerning improperlegal and organizational guarantees of the implementation of the legal status of ataxpayer, a tax agent or a credit institution owing to the absence in tax legislation of adefined and closed (i.e. exhaustive) list of tax risks and criteria for assessing them. Sucha conclusion is made based on systemic legal research of the mechanism of the legalregulation of tax control, specific aspects of organizing it, and the structure and legalstatus of tax control in Russia. Preventive measures of tax compliance are examined aspart of a system of measures of administrative enforcement together with preclusive,provisional, punitive and restorative administrative enforcement measures are appliedfor the violation of tax legislation. At the same time, advantageously for the improvementof tax compliance, the prospects are assessed for a transition from vertical to horizontaltax relationships, i.e. wide implementation of tax monitoring as a method of tax controland a gradual withdrawal from tax audits to the extent that the effectiveness increases ofa risk-oriented approach in tax control. However, all this is possible only if the conceptof lawfulness is unconditionally embedded in the mechanism of legal regulation of taxcontrol, such concept presupposing that all constitutional principles of taxes and levieswill be implemented in legal regulation and law enforcement practice.
For citation: Ovcharova E.V. (2019) Tax Compliance in Russia: Balance between Administrative Enforcement and Stimulating Measures. Pravo. Zhurnal Vysshey shkoly ekonomiki, no 1, pp. 89–111 (in Russian) DOI: 10.17-323/2072-8166.2019.1.89.11
Citation: Ovcharova E. (2019) Nalogovyy komplaens v Rossii: problemy sootnosheniya mer administrativnogo prinuzhdeniya i stimulirovaniya [Tax Compliance in Russia: Balance between Administrative Enforcement and Stimulating Measures]. Pravo. Zhurnal Vysshey shkoly ekonomiki, no 1, pp. 89-111 (in Russian)
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