Tax risk zones and the specifics of tax offenses in Russia and France for VAT

About the authors:

Pierre Tifin, Doctor of Law, Professor of Public Law, Dean of the Faculty of Law, Economics and Management, University of Lorraine (Metz, Nancy, France); pierre.tifine@univ-lorraine.fr

Irina I. Ogorodnikova, Cand. Sci. (Soc.), Assistant Professor, Department of Economics and Finance, Institute of Finance and Economics, University of Tyumen, i.i.ogorodnikova@utmn.ru

Alexander A. Stepanov, PhD Student, Faculty of Law, Economics and Management, University of Lorraine (Metz, Nancy, France); daistipuhu@gmail.com

Abstract:

The predominance of indirect taxation in the formation of Federal budget revenues in the Russian Federation is largely due to the introduction of a value-added tax in 1992. By 2019, the share of VAT in the consolidated budget is about 20 %. But the realities of modern taxation are still associated with tax risks. Tax risk analysis is related to the study of negative financial consequences for both the state and taxpayers, which in turn is due to a number of internal and external factors. Value-added tax in many countries of the world occupies an absolute leading position and is budget-forming, and VAT evasion is fraught both for the country’s economy and budget filling. Digitalization of the tax administration process and the use of IT technologies allowed to increase the revenue of the value added tax, but at the same time failed to eliminate tax violations that occur during its calculation and collection. The introduction of digital tax administration technologies strengthens the state’s position in the field of tax control. Setting the VAT rate from 2019 to 20% as an indirect tax resulted in an increase in the tax burden and did not eliminate the problems that arise with tax offenses in the calculation and collection of tax. This aspect is typical for all countries that apply value-added tax in their tax system. The purpose of this work is to identify the causes of VAT evasion, as well as typical violations in its calculation and collection. Studying, including foreign experience, and adapting it to Russian realities will reduce the tax risks of repeated occurrence of tax offenses and in the future will prevent the fact of tax evasion and minimization, which will be an element of scientific novelty.

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