Dialectics of Contradictions in Legal Regulation of Value Added Taxation

Abstract

The article examines a set of contradictions in the taxation of value added in the contemporaryRussia, which can be found at the borders of the systems of public administration, fiscaldistribution, social and economic reproduction. Among the social contradictions thatcannot be overcome within the framework of existing legislation and which tend to increasein all groups in legal relations, allocated: economic-legal (manifested mainly in the sphereof production of material goods) between the nature of legal regulation of taxation of valueadded and the level of development of productive forces; between labor and capital as themain factors of production, affecting the performance of the mechanism of legal regulationof taxation of value added; financial and legal relations: between the actual nature of themodern Russian model of financial redistribution of added value and socially-orientedtarget settings for the use of funds received from value-added taxation; law enforcement:between the declarations of the fight against corruption and the situation when the majorityof VAT tax fraud detected in the Russian Federation is based on schemes organized andexecuted with the participation of officials themselves within regulatory and law enforcementagencies; between the costs of effort and resources that are diverted to improving the legalregulation of VAT, and the persistent inability of the state institutions to eliminate the criminalnetworks of VAT fraud that form a new sector of criminal business; social and legal issuesthat are manifested in the process of structural deformations of civil society. The conclusionis made about the need to reform VAT in line with the conscious and systematic resolutionof contradictions in the legal regulation of value-added taxation, expressed in the currentRussian Federation legislative acts. The main conditions for overcoming the contradictionswithin the legal regulation of VAT have to become the following legislative restrictions:the state’s legal policy have to be purposed at a fair financial and legal distribution of VATrevenues and the actual reduction of income inequality between the richest and pooreststrata of the population; the largest part of tax payments is spent on the needs of themajority of citizens; the state’s industrial policy must be aimed at the growth of capitalintensivemodern production and labor productivity.
For citation: Bachurin D.G. (2021) Dialectics of Contradictions in Legal Regulations of Value Added Taxation. Pravo. Zhurnal Vysshey shkoly ekonomiki, no 3, pp. 56–81 (in Russian) DOI: 10.17323/2072-8166.2021.3.56.81