Basic tendencies in the development of Russian and Estonian tax systems. Основные тенденции развития систем налогообложения России и Эстонии.

The purpose of the article is to review the basic principles and criteria of Russia and Estonia tax systems. ...

The purpose of the article is to review the basic principles and criteria of Russia and Estonia tax systems, as well as their development tendencies. The article describes the main aspects of social tax in Estonia and insurance premiums in Russia, obligations to pay it for legal bodies and individual citizens. The articulation of taxation management concept,

At this time period there was a legislative code of laws of the Russian Federation on specific kinds of taxes and fees, the basic principles of which are preserved.

In accordance with article 82, paragraph 1 of the Tax Code the tax control is carried out by the tax authorities within the frames of their competence by means of tax inspections, for obtaining explanations from taxpayers, tax agents and the levy payers, verification and accounting, inspection of premises and territories used for deriving of income (profit), as well as in other forms stipulated by the given Code*18.
During the implementation of tax control it is not permitted to collect, store, use and distribute the personal information of the taxpayer (levy payer, or tax collection agent) obtained in violation of the provisions of The Constitution Tax code of the Russian Federation, Federal Laws as well as violation of the data saving principle of professional secrecy, in particular client-lawyer privilege, and auditoria secrecy*19.
Each year, tax legislation has undergoes through many changes. The past year was no exception, and a number of amendments to the Tax Code of the Russian Federation in the course of the year, have come into effect on January 1, 2013. The most significant change of all taxpaying organizations is that they only need to submit an annual bookkeeping record (financial) statement (with exception of those organizations that are not required to maintain a bookkeeping record). Unlike Russia, the tax law changes in Estonia do not occur so frequently. The tax and book keeping system is more stable, relatively simple and transparent, which was mostly affected by the accession to the EU*20.
The bookkeeping is often called ´´language´´ of business and enterprise. Therefore the general rules must be established in order for all the organizations and all members of business activity to accept and follow them. These rules are governed by the legislative and regulatory acts and regulations at the State level. The method of regulation is determined by the statutory document, as well as management of the bookkeeping records for all business organizations who perform as legal bodies.
In order to improve the quality and accessibility of information generated in the financial accounting and reporting, as well as improving the regulatory system of accounting and control financial statements The Ministry of Finance of Russia has approved the plan for 2012-2015 for the development of the bookkeeping and financial reporting on the basis of international financial reporting standards.
One of the first steps for the plan implementation was the adoption of a new law on bookkeeping (Federal law of 6.12.2011 No.402-FZ)*21, which came into an effect on January 1, 2013. The comparative analysis of the main principles of the new accounting law has showed their radical contrast from the principles applied before the year of 2013 N 129-FZ dated 21.11.1996.
Financial and economic activity consists of:
- source formation which is necessary for the activity. Sources may be financial and tangible;
- investment of funds which were raised and formed: creating production stock, cost of goods manufactured;
- product sales and budget mutual relations in terms of tax assessment and other economic operations*22.
The main objectives of bookkeeping are:
- formation of reliable information about business processes and performance results enterprises necessary for operative management and corporate governance as well as its use by investors, consumers, tax, financial, banking institutions and other persons;
- monitoring provision of the availability of assets and the use of material, labor and financial resources in accordance with approved standards, specifications and estimates; prevention of negative phenomena in financial activities, identification and mobilization of internal resources*23.
Competent organization of bookkeeping allows the company to:
- to ensure the safety of property;
- ensure the effective management of resources;
- calculate the financial result of activity;
- determine tax liabilities.
The original Estonian standard of financial reporting is established by the law of accounting. One of the main objectives of this document is the organization of bookkeeping and financial reporting on the basis of internationally recognized principles. From a practical standpoint it means that financial reporting standards are largely based on international financial reporting standards.
The bookkeeping in Estonia is an accounting period in the large system of economic accounting, the main areas of which are: financial accounting, management accounting, cost accounting, financial analysis. The bookkeeping record as part of financial accounting deals with the registration, accounting and reporting of the company’s business transactions. A precondition for a successful business activity is the asset accounting and business liability. The obligation to keep a bookkeeping record and data reporting is also determined by the need to provide the external consumers and the State with adequate information on the financial status and economic activities of the reporting entity. In accordance with the Commercial Code, the obligation to keep the bookkeeping records up-to-date rests on the company management, who also is held responsible before the commercial Association, its owners or creditors in case of damage caused by breach of this duty or if the performance does not meet the required standards*24.
A well organized bookkeeping system in Estonia has five main features. It is an adequate and effective internal control system; compatibility; flexibility; costs of construction and maintenance of the bookkeeping system shall not exceed a reasonable level; the needs of interest groups must be considered.
Both Russian and Estonian accounting system, generating useless information is generally inefficient. It is therefore advisable to proceed from both internal and external interests of information consumers. Operation of the system and the use its all capacity depends largely on the human factor, that is, on the professional knowledge, skills and expertise of accountants. Cash transactions and payment operations, are the most important factors in ensuring the circulation of funds. Their correct and timely conduct is essential to the production process. The effectiveness of settlement operations depends on the condition of the company’s bookkeeping records. Thus, the accounting department of the company should adhere to a certain accounting principles and accounting methods, as well as the existing legislative framework and regulatory instruments.
Thus, the effectiveness of the tax system is subject to a certain criteria, requirements and principles of taxation. In the basis of the taxation systems of both countries underlie four main principles of the taxation:
- the principle of fairness that assumes the universal taxation and tax uniformity among citizens in proportion of their income;
- the principle of certainty that the amount, method and time of payment should be clearly known in advance to the taxpayer;
- the principle of comfort— tax should be levied at such time and in such a way that represent the greatest comfort to the payer;
- principle of savings that implies a reduction of taxes.