TAX CONTROL IN MODERN CONDITION: Illegal Tax Reduction

Avoidance entails negative consequences for the economy and the state as a whole. In addition, tax evasion has serious economic consequences in terms of distortion of competition. For example, two companies that manufacture the same goods in case of failure of one of them from paying taxes will be at a disadvantage.

The state is struggling with tax evasion in various ways (especially legislative):

Zapolnenie Gaps in the Tax Law

One of the objectives of the legislator is to fight for maximum replenishment, in particular by combating tax evasion. One form of this struggle is the prompt elimination of gaps in the legislation.

In this regard, the long-term tax optimization (eg, long-term contracts, the results for which are not subject to taxation) it is likely that in the end this “loophole” is closed. As a result of such intervention of the legislator may suffer as taxpayers took advantage of loopholes in order to streamline and all the rest. The new rules, to stop tax evasion, are introduced as rigid as entirely legitimate activity becomes impossible. Insurance market

Currently, the most common and at the same time bringing the state’s largest expense method of tax evasion -“cashing out” a “phony” (in fact, such firms may exist and to “work” for a long time). “Ephemeral” – firms registered at the Nominee and having a nominee director, who usually serves in one person. By some estimates the number of such firms is comparable to the number of legal firms.

States to establish barriers to registration of such companies (holding replacement passports – many firms are counted in lost passport or a “dead” souls, re-registration organizations and the creation of a unified state register of legal entities; complication of the procedure of registration and a notarized signature of the person registering firm), but this does not solve the problem.

Further steps of the state in this direction – it is the legislative establishment of the possibility of liquidation of the company “without any signs of life” (sit-reporting and not having turnovers on accounts over a period of 1 year) under a simplified procedure initiated by the tax authorities. This also applies to companies registered before the entry into force of this Act. Thus, the state introduces another barrier to the activity of «ephemeral» and trying to get rid of such companies registered before, and creating an additional burden on tax and reduces the efficiency of tax control.

Improving Tax administration

Improving tax administration improves the efficiency of tax authorities and tax control measures. Reduce the total amount of taxes, primarily through consolidation of taxes, which have the same tax base, and the elimination of low taxes collected and taxes, the proceeds of collection are low, will offload the tax authorities, and focus on the major taxes, which is formed by the state budget. In recent years, you can send tax returns via telecommunication channels (Internet) and in electronic form, which also increases the efficiency of the tax authorities.

The Reduce of Tax Burden

Reducing the tax burden reduces the effectiveness of interventions to reduce taxes (illegal as well as legal).

Establishing special tax treatment allows you to simultaneously improve tax administration and reduce the tax burden (especially in regard to small business).

Also, the state uses, and other ways to combat tax evasion (tax advocacy, etc.). In addition, the tax authorities have enough options in the implementation of measures of fiscal control and accountability in case of detection of tax evasion, including the interaction with other government agencies.

For example, will not only exchange information but also collaborate to develop training materials to identify schemes to minimize taxes in the insurance sector, as well as conduct joint inspections, meetings, conferences and seminars.

The state is obliged to create a solid foundation for the organization and conduct of fiscal control, make it independent. Independence from local government authorities in a major change of economic relations, affecting the interests of all businesses and the majority of citizens, involves the implementation in practice carried out in the country’s tax policy by using the rules of tax law, rather than subjective decisions and opinions.

The special role of fiscal control is also necessary for stabilizing the financial system, steady revenue budget revenues, compliance with fiscal discipline as a condition of high-quality obligations to the state of physical and juridical persons. Analyzing the studies, we obtained the following results:
• To increase in the tax authorities of tax control efficiency to comply with tax laws, provide opportunities and ways of using new technologies and methods;
• In the direction of the organization of work as a “close contact” between members of the Tax Committee and the taxpayers: scientifically proven dissemination of information, training, counseling;
• The tax authorities, other institutions for the exchange of information within the system as part of a common information space with other tax committees, to strengthen the powers of tax authorities in legal relations in the management information system of taxation;
• Integrated assessment of the effectiveness of the tax authorities by taxpayers subject to “self and other payment systems” to create its database, classifying possible use of valuable indicators of the tax committees;
• Consider the tax-and-control relationship management system as a functional element of the tax mechanism. Given all the above we can conclude that the tax control is not only in verifying compliance with tax laws, but also in checking the correctness and completeness of the calculation and timely payment of taxes and other mandatory payments to the budget, as well as eliminate violations of the law of the Republic of Kazakhstan.