Model of Digital VAT Administration as a Tool to Reduce Tax Risks
How to Cite
Stroiteleva V.A. Model of Digital VAT Administration as a Tool to Reduce Tax Risks. Humanities of the South of Russia. 2019. Vol. 8. No. 5. P. 284-294. DOI: https://doi.org/10.23683/2227-8656.2019.5.24 (in Russ.).
Abstract
In this article the author aims to determine the optimal model of digital VAT administration as a tool to minimize the tax risks of inefficient execution of tax obligations of economic entities in developed and developing countries.Existing models of digital VAT administration as a tool to minimize tax risks from tax evasion are compared. Model 1: reverse digitalization assumes that the state creates the most favorable conditions for the modernization of the practice of accounting, calculation and payment of VAT by taxpayers. Model 2: direct digitalization, where the activities of the tax service itself are modernized on the basis of the introduction of artificial intelligence. Model 3: system digitalization, where both the practice of accounting, calculation and payment of VAT by taxpayers and the practice of tax administration of this tax are modernized.It is proved that the system accounting for the efficiency and competitiveness of the tax system, taking into account not only the shadow economy (result), but also the cost of tax administration (costs), the model associated with the modernization of the system, is impractical. In both developed and developing countries, model 2 is optimal: direct digitalization, which involves the modernization of only the activities of the tax service itself. Therefore, it is the most promising model of digital VAT administration.
Keywords:
modernization, tax administration, value added tax (VAT), shadow economy, minimization of tax risks, tax evasion, digital economy
References
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Gashenko, I.V., Zima, Y.S., Stroiteleva, V.A., Shiryaeva, N.M. (2017). The mechanism of optimization of the tax administration system with the help of the new information and communication technologies. Advances in Intelligent Systems and Computing. Springer.
Global forum on transparency and tax information exchange. Tax transparency: progress report (2018). OECD. Available at: https://www.oecd.org/ tax/ transparency/global-forum-annual-report-2018.pdf.
The Global Competitiveness Report 2018 (2018). World Economic Forum. Available at: http://reports.weforum.org/global-competitiveness-report-2018.
Annual information on the implementation of the federal budget (2019). Ministry of Finance of the Russian Federation. Available at: https://www.minfin.ru/ru/statistics/ fedbud.
The International Tax Competitiveness Index (2019). Tax Foundation. Available at: https://taxfoundation.org/ publications/international-tax-competitiveness-index.
World digital competitiveness ranking (2018). IMD. Available at: https:// www.imd.org/wcc/world-competitiveness-center-rankings/world-digital-competitiveness-rankings-2018.
Migai, C.O., de Jong, J., Owens, J.P. (2019). The sharing economy: Turning challenges into compliance opportunities for tax administrations. Zhurnal nalogovykh issledovaniy, 16 (3), 395-424.
Indicators: private sector (2019). World Bank. Available at: https:// data.worldbank. org/indicator.
Popkova, E.G., Parakhina, V.N. (2019). Managing the global financial system on the basis of artificial intelligence: possibilities and limitations. Lektsionnyye zametki v setyakh i sistemakh, 57(1), 939-946.
Popkova, E.G., Egorova, E.N., Popova, E., Pozdnyakova, U.A. (2019). The model of state management of economy on the basis of the internet of things. Issledovaniya v oblasti vychislitel'nogo intellekta, 826 (1), 1137-1144.
Shadow Economies Around the World: What Did We Learn Over the Last 20 Years? (2018). IMF. Available at: https:// www.imf.org/en/Publications/WP/Issues/2018/01/25/Shadow-Economies-Around-the-World-What-Did-We-Learn-Over-the-Last-20-Years-45583.
Citation Formats
Other cite formats:
APA
Stroiteleva, V. A. (2019). Model of Digital VAT Administration as a Tool to Reduce Tax Risks. Humanities of the South of Russia, 8(5), 284-294. https://doi.org/10.23683/2227-8656.2019.5.24
Section
ECONOMY AND MANAGEMENT
