International Accounting
 

Updating the essence of tax controversy and the measures to mitigate it under crisis: Fighting the shadow economy and the transition to fair taxation rules

Vol. 21, Iss. 1, JANUARY 2018

Received: 26 April 2017

Received in revised form: 23 June 2017

Accepted: 13 July 2017

Available online: 16 January 2018

Subject Heading: Tax and taxation

JEL Classification: D63, E62, H2, K34, O17

Pages: 103Ц120

https://doi.org/10.24891/ia.21.1.103

Manushin D.V. Kazan Innovative University named after V.G. Timiryasov (IEML), Kazan, Republic of Tatarstan, Russian Federation
predmet22@mail.ru

ORCID id: not available

Subject The article addresses the issue of tax controversy and measures to mitigate it.
Objectives The aim is to study and update the term of tax controversy to facilitate the search for realistic contradictions in the Russian economy and offer measures to moderate them; to define and describe the essence of each measure, taking into account the influence of the shadow economy on them, other institutional factors, and overt economic crisis.
Methods The paper rests on the abstract and logical method.
Results I redefine the tax controversy concept, prove that the phenomenon exists in the Russian economy, formulate tax equity rules and measures for their implementation. For better implementation, I offer schemes preventing taxpayers from moving to the shadow economy. The paper substantiates the importance of a transition period for any action in the taxation area.
Conclusions The revised concept necessitates a review of all other theoretical aspects in this area, i.e. types, stages, principles, functions of tax controversy, etc. The new taxation rules lead to the recognition of importance to review all laws and regulations related to measures for changing tax rates other than progressive ones.

Keywords: tax contradiction, shadow economy, crisis, rules tax equity

References:

  1. Manushin D.V. [Estimation and improvement of the RF government plan for providing the sustainable social-economic development of Russia in 2016]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2016, vol. 10, no. 3, pp. 5Ц27. (In Russ.)
  2. Manushin D.V. [Evaluation of the anti-crisis plan of the Russian government for 2015 and development of measures to improve it]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2015, no. 3, pp. 45Ц54. (In Russ.)
  3. Andryushchenko Ya.V. [The necessity of tax conflicts settlement at the pre-trial level]. Vestnik Tomskogo gosudarstvennogo universiteta = Tomsk State University Journal, 2009, no. 329, pp. 113Ц116. (In Russ.)
  4. Kashuba V.M. [Actual aspects of tax risk management in Russian companies]. ETAP: ekonomicheskaya teoriya, analiz, praktika = ETAP: Economic Theory, Analysis, Practice, 2012, no. 4, pp. 32Ц49. (In Russ.)
  5. Loginova L.V., Figlin L.A. [State management of regional development in Russia]. Vestnik Saratovskogo gosudarstvennogo sotsial'no-ekonomicheskogo universiteta = Vestnik of Saratov State Socio-Economic University, 2012, no. 2, pp. 171Ц177. (In Russ.)
  6. Miller N.V., Bazhenov S.S. [Harmonization of taxation of the VAT of participants of the foreign trade activity in the conditions of the Customs Union]. Vestnik Omskogo universiteta. Seriya: Ekonomika = Herald of Omsk University. Series Economics, 2013, no. 3, pp. 55Ц58. (In Russ.)
  7. Tyutin D.V. [The Russian institution of tax agents: Hidden contradictions]. Nalogoved, 2013, no. 4, pp. 12Ц21. (In Russ.)
  8. Lysunets M.V. [Impact of global crisis on national tax policies]. Natsional'naya assotsiatsiya uchenykh = The National Association of Scientists, 2016, no. 2, pp. 44Ц45. (In Russ.)
  9. Li E.A. [Problems and contradictions of the tax system of the Russian Federation]. Elektronnyi vestnik Rostovskogo sotsial'no-ekonomicheskogo instituta, 2016, no. 2, pp. 247Ц253. (In Russ.) URL: Link
  10. Grigor'eva K.S. [Contradictions of interests and conflicts in system of tax relations]. Vestnik Tomskogo gosudarstvennogo universiteta. Ekonomika = Tomsk State University Journal of Economics, 2012, no. 1, pp. 108Ц112. (In Russ.)
  11. Krugova L.I. [Contradictions of economic interests of managing subjects in the tax sphere as threat of economic safety]. Sotsial'no-ekonomicheskie yavleniya i protsessy = Socio-Economic Phenomena and Processes, 2012, no. 9, pp. 77Ц79. (In Russ.)
  12. Chuzhmarova S.I. [Contradictions of State taxation management]. Korporativnoe upravlenie i innovatsionnoe razvitie ekonomiki Severa, 2014, no. 2, pp. 127Ц136. (In Russ.) URL: Link
  13. Basnukaev M.Sh. [Contradictions and shortcomings of the functioning taxation system: Russian experience and practice]. Vestnik Severo-Osetinskogo gosudarstvennogo universiteta imeni Kosta Levanovicha Khetagurova = Bulletin of North Ossetian State University, 2017, no. 1, pp. 110Ц113. (In Russ.)
  14. Manushin D.V. [A fresh apaproach to the concept and specifics of economic contradictions]. Innovatsii = Innovations, 2016, no. 10, pp. 74Ц85. (In Russ.)
  15. Wanniski J. Taxes, Revenues, and the 'Laffer Curve'. National Affairs, 2017, no. 32, pp. 3Ц16.
  16. Buchanan J.M., Lee D.R. Politics, Time and the Laffer Curve. Journal of Political Economy, 1982, vol. 90, iss. 4, pp. 816Ц819.
  17. Johnson S., Kaufmann D., Zoido-Lobatón P. Regulatory discretion and the unofficial economy. American Economic Review, 1998, vol. 88, iss. 2, pp. 387Ц392.
  18. Schneider F. Shadow Economies Around the World: What Do We Really Know? European Journal of Political Economy, 2005, vol. 21, iss. 3, pp. 598Ц642.
  19. Fedorova E.I., Vasil'eva T.Yu. [Taxes as a factor of shadow economy emergence and development]. Vestnik Chuvashskogo universiteta, 2006, no. 6, pp. 475Ц478. (In Russ.)
  20. Nesterova N.V. [The shadow economy and tax evasion]. Upravlenie ekonomicheskimi sistemami, 2008, no. 13, pp. 19Ц21. URL: Link (In Russ.)
  21. Sukharenko A.N. [Shadow economy of the Far East: Dismal prospects]. Oikumena. Regionovedcheskie issledovaniya = Ojkumena. Regional Researches, 2011, no. 3, pp. 149Ц156. (In Russ.)
  22. Kokin A.S., Yasenev O.V., Yasenev V.N. [Shadow economy in the world economic space]. Vestnik Nizhegorodskogo universiteta im. N.I. Lobachevskogo = Vestnik of Lobachevsky State University of Nizhny Novgorod, 2014, no. 1-1, pp. 333Ц337. (In Russ.)
  23. Kopylova Yu.G. [The essence, purpose and main contradictions of Russia's economic policy with respect to the shadow economy]. Sovremennye problemy nauki i obrazovaniya, 2014, no. 2. URL: Link (In Russ.)
  24. Malis N.I. [Tax policy in combating the underground economy: Improving tax collection]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Research Institute. Financial Journal, 2014, no. 1, pp. 81Ц90. (In Russ.)
  25. Prostokvashin S.V. [Influence of tax burden on the financial condition of economic entities of the Russian Federation as a cause of shadow economy sector development]. Informatsionnaya bezopasnost' regionov = Information Security of Regions, 2014, no. 4, pp. 73Ц77. (In Russ.)
  26. Ablizina N.N., Poltorykhina S.V. [Problems and trends of budget fund expenditures]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2014, no. 3, pp. 26Ц33. (In Russ.)
  27. Farrakhova E.G., Derevenskova M.G. [Analysis of the role of taxes in the formation of federal budget revenues]. Ekonomika i sotsium, 2015, no. 6-3, pp. 1142Ц1156. (In Russ.)
  28. Aliev B.Kh., Somoev R.G., Kravtsova N.I., Suleimanov M.M. [The role of tax federalism in leveling the interterritorial differentiation of regions]. Nalogi i nalogooblozhenie = Taxes and Taxation, 2015, no. 9, pp. 655Ц664. (In Russ.)
  29. Alimirzoeva M.G. [Modern trends and problems of the Russian tax system development]. Nalogi i nalogooblozhenie = Taxes and Taxation, 2016, no. 7, pp. 563Ц573. (In Russ.)
  30. Varlamova T.P. [Interaction of economic interests and their contradictions under modern Russian economy]. Povolzhskii torgovo-ekonomicheskii zhurnal, 2011, no. 1, pp. 53Ц58. (In Russ.)
  31. Latynina N.A. [Factors of ensuring economic growth]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2013, no. 1, pp. 5Ц9. (In Russ.)
  32. Yakupov Z.S. [Controlling function of a tax in interconnection with its other functions]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2013, no. 3, pp. 171Ц175. (In Russ.)
  33. Yakupov Z.S. [Conceptual basis of forming the efficient fiscal control system]. Gorizonty ekonomiki, 2013, no. 3, pp. 60Ц64. (In Russ.)
  34. Notfullina G.N., Gafurova G.T. [Problem aspects of execution of the budget of the Republic of Tatarstan under incomes and ways of their solution]. Vestnik Astrakhanskogo gosudarstvennogo tekhnicheskogo universiteta. Seriya: Ekonomika = Vestnik of Astrakhan State Technical University. Series: Economics, 2013, no. 2, pp. 214Ц220. (In Russ.)
  35. Gao P., Ma Ju. China: Toward the New Stage of Improving Its Tax System. Journal of Tax Reform, 2015, vol. 1, no. 2-3, pp. 145Ц160.
  36. Manushin D.V. [Defining the functions of anti-crisis management of the Russian economy]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2012, no. 3, pp. 130Ц135. (In Russ.)
  37. Manushin D.V. [Defining the principles of State anti-crisis management in the Russian economy]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economy and Law, 2012, no. 1, pp. 92Ц97. (In Russ.)
  38. Steuerle C.E. And Equal (Tax) Justice for All? URL: Link
  39. Chirkin V.E. [Social justice as a factor of sustainable development of the society (constitutional issues)]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2017, vol. 11, no. 1, pp. 89Ц97. (In Russ.)
  40. Sidgwick H. The Principles of Political Economy. London, MacMillan, 1883.
  41. Cohen-Stuart A.J. On Progressive Taxation. Reprinted in: Classics in the Theory of Public Finance. R.A. Musgrave and A.T. Peacock (eds.). London, Macmillan, 1958.
  42. Cassell G. The Theory of Progressive Taxation. Economic Journal, 1901, no. 11, pp. 481Ц491.
  43. Mill J.S. Principles of Political Economy. London, John W. Parker, 1848.
  44. Edgeworth F.Y. Methods of Graduating Taxes on Income and Capital. The Economic Journal, 1919, vol. 29, no. 114, pp. 138Ц153.
  45. Pigou A. A Study in Public Finance. London, MacMillan & Co., 1928.
  46. Musgrave R.A., Peacock A. Classics in the Theory of Public Finance. New York, MacMillan-Hill, 1958.
  47. Young H.P. Progressive Taxation and the Equal Sacrifice Principle. Journal of public Economics, 1987, vol. 32, pp. 203Ц214. URL: Link
  48. Oishi S., Schimmack U., Diener E. Progressive Taxation and the Subjective Well-Being of Nations. Psychological Science, 2012, vol. 23, iss. 1, pp. 86Ц92.
  49. Derina O.V., Drozdova O.A. [Value Added Tax: Ways of reforming and possible consequences]. Studium, 2009, no. 2, pp. 4Ц16. (In Russ.)
  50. Gryaznukhina-Stepanova V.R. [Foreign experience of taxation in mineral resource management and rental payment expertise]. Vestnik Severo-Vostochnogo federal'nogo universiteta im. M.K. Ammosova = Vestnik of NEFU, 2008, vol. 5, no. 1, pp. 83Ц90. (In Russ.)
  51. Reed T. A Fresh Perspective. URL: Link
  52. Kahale G. The Venezuelan Operating Service Agreements: Trying to Fit a Square Peg in a Round Hole. Middle East Economic Survey (MEES), 2011. URL: Link
  53. Weber J.G., Wang Y., Chomas M. A Quantitative Description of State-Level Taxation of Oil and Gas Production in the Continental U.S. Energy Policy, 2016, vol. 96, pp. 289Ц301.
  54. Monina A.V. [The analysis of the tax on mining (MET) from 2002 to 2016]. Innovatsionnaya ekonomika, 2016, no. 2, pp. 9Ц18. (In Russ.)
  55. Shangaraeva A.I., Shevchenko D.V. [On the algorithm for accelerating the numerical calculations in multiphase filtering problems]. Teoriya upravleniya i matematicheskoe modelirovanie. Tezisy dokladov Vserossiiskoi konferentsii s mezhdunarodnym uchastiem, posvyashchennoi pamyati professora N.V. Azbeleva i professora E.L. Tonkova [Proc. Sci. Conf. The Control Theory and Mathematical Modeling]. Izhevsk, Udmurt State University Publ., 2015, pp. 319Ц320. (In Russ.)
  56. Manushin D.V. [Administrative Barriers in the Russian Economy as Conditions Facilitating the Existence of Corruption, and Measures to Eliminate Corruption]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economy and Law, 2014, no. 4, pp. 52Ц60. (In Russ.)
  57. Abramov A.E., Mau V.A., Radygin A.D. et al. Krizisnaya ekonomika sovremennoi Rossii: tendentsii i perspektivy: monografiya [Crisis economy of modern Russia: Trends and prospects: a monograph]. Moscow, Prospekt Publ., 2010, 654 p.

View all articles of issue

 

ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 21, Iss. 10
October 2018

Archive