Control and Supervision Activities as a Factor of Boosting Business Activity of Tax Authorities

Abstract

The paper examines the key management decisions of tax authorities in the control and supervision area and their importance for enhancement of business activities of economic entities. The subject of the research is management decisions of tax authorities in carrying out the program “Reforms of control and supervision activities” and the practice of their implementation. The purpose of the research was to reveal current trends in the control and supervision policy of tax authorities aiming to ensure a business-friendly environment for legal entities and individuals. The research methods included the content analysis of the legal and regulatory framework, the economic and statistical analysis of tax reporting; tabular and graphic data visualization and performance monitoring of tax authorities. Based on the research findings it is stated that the tax authorities are making significant efforts to improve the control and supervision activities, which makes it possible to reduce the administrative burden on the business and raise the quality of services provided to taxpayers. However, there is a number of still existing organizational and legal aspects that do not allow full optimization of the control and supervision functions for ensuring more favorable conditions for doing business in the Russian Federation. There are circumstances that prevent better servicing of taxpayers by the Inspectorate of the Federal Tax Service. It is concluded that the criteria for assessing the efficiency and effectiveness of control and supervision activities need to be reviewed and updated.