TAX CONTROL IN MODERN CONDITION: The Main Objectives

• The inevitable punishment for violators of the legislation on taxes and fees;
• Ensure the correct calculation, timely and complete introduction of taxes and fees in the budget (state budget funds);
• A warning of violations of legislation on taxes and fees, as well as damages caused by the state due to failure of the taxpayer (tax agent) and other persons of their duties. Greek banking sector

Contents of Tax Control Includes

• Verification of the individuals and organizations responsibilities for the calculation and payment of taxes;
• Verification of tax registration and enforcement of taxpayers related duties;
• Validation of accounting (tax) register, timely submission of tax returns and the reliability of information contained therein; verify compliance costs of large individuals of their income;
• Verification of the execution of tax agents calculation duties, withhold from taxpayers and transferred to the appropriate budget (state budget fund) taxes and fees;
• Verification of compliance by taxpayers and other persons remedial order under tax legislation;
• Verification of compliance by banks obligations under tax law, to verify the correctness of the cash-register machines to provide cash payments to the public;
• Prevention and suppression of violations of legislation on taxes and duties, the identification of problematic categories of taxpayers;
• Identifying violators of tax laws and bringing them to justice;
• Compensation for material damage caused to the state due to failure of the taxpayer (tax agent) and other persons responsibilities under the tax laws.

Methods of tax control are those techniques and methods by which this control is exercised.

Among the problems of fiscal control would like to mention the problems arising during audits of small businesses. Small business sector is among those areas of business that are least amenable to tax control. If financial flows organizations, which is a major taxpayer, are always under the scrutiny of tax authorities, and current tax payments are subject to ongoing monitoring, in relation to small business tax management objective may not be such a global comprehensive.

Ensuring rational selection of taxpayers for field tax audits is a major problem, without a principle decision of which it’s impossible to maintain a quality control over the area of small business. This attention to small businesses is not by accident. So, if relatively large taxpayers problem of selection is not worth, for such taxpayers must periodically be selected for inspection based on the sole criterion for selection – the value of tax revenue for the formation of budget revenues, the tax control for small businesses without the use of targeted screening would be more resemble fire from guns on sparrows.

Only the application of high selection system will allow providing a maximum concentration of efforts of tax authorities to verify the categories of taxpayers, the probability of detecting violations which seems the most real.

The most important factor in increasing the effectiveness of the control of tax authorities is to improve existing procedures audit.

The most promising looks an increase the number of inspections of tax compliance, conducted jointly with the financial police. Effectiveness of their very high, so continuation of joint activities could lead to increased revenues from such audits.

Also, one of the most effective forms of fiscal control are rechecking companies that have committed tax evasion on a large scale during the year from the date of such concealment. Such repeated testing allows companies to monitor compliance with the act of the previous inspection, as well as the reliability of the current account. Practice has shown that very useful in the work of tax authorities is to carry out raids in the night time, also significantly increases the effectiveness of control in the application of cross-checks, the essence of which is in departure of staff departments of some tax authorities in the territory of other tax authorities.

Essential features of any effective system of fiscal control are:
• An effective system of selection of taxpayers for the raid audits, making it possible to choose the most optimal direction of the use of limited human and material resources of the tax authorities, to maximize the impact of tax audits with minimal effort and money, by selecting for audit those taxpayers, the probability of detecting tax violations of which is the highest;
• Use of effective forms, methods and techniques of tax audits, based on both the developed tax authority a single integrated standard procedure organization audit and on a sound legal framework, providing tax authorities broad powers in the sphere of fiscal control for the effects of unscrupulous taxpayers;
• Use performance appraisal system of tax inspectors, which will allow to take into account the results of each of them, to effectively distribute the load in the planning of control work.
• Increasing the size of penalties for tax offenses.

The problem of rational selection of taxpayers for audit acquires special importance in the face of massive violations of tax laws, typical for modern Kazakhstan.

The problem of rational selection of taxpayers for audit acquires special importance in the face of massive violations of tax laws, typical for modern Kazakhstan.

It is necessary to substantially change the existing methodology for planning control measures. In order to effectively plan the control work it is necessary to have a modern, meeting the requirements of today’s system of selecting taxpayers for offshore inspections, including taking into account the peculiarities of specific regions and specific taxpayers.

One of the biggest challenges is improving the existing software procedures of desk audits and the selection of taxpayers for the raid audits. Currently, the Ministry of Finance is continuing to further improve the procedures of selecting and developing a unified software, implementation of which will automate the process of selection of taxpayers with the most characteristic performance levels, the dynamics of relations of various accounting figures from permissible for such ventures outside, to assess the real limit obligations of the taxpayer.

However, currently there are enough examples where a number of tax authorities used independently developed automated selection system, the use of which even the far-not the most perfect technical base brings a very tangible results.

Used by tax authorities the software informational complexes allow not only an automated desk audit and laboratory analysis, but by their results – the selection of taxpayers for the offshore tax audits. However, the lack of effective software processes desk audits and off-site analysis is that it involves the complete automation of the procedure itself only a desk audit, and the selection of taxpayers for offshore inspection is carried out mainly in the uplink mode, that is selection criteria introduced by the tax inspectors themselves with the high change of subjective factor.

In addition, current software is developed without taking into account the industry specification of taxpayers, and not focused on a comparison of levels of individual indicators contained in the reports, with the limit values of these indicators for the industry.