PLEKHANOV RUSSIAN ACADEMY OF ECONOMICS
Report "The Tax Law"
Student: Julia Efimova
Academy supervisors:Ekaterina Vladimirovna Bagreeva
Per Oyvind Berg-Knutsen
1) Taxes and the Tax Law 4
2) Taxpayers 7
3) Tax authorities 9
4) Tax offences 10
4.1) Court Proceeding in a tax offence case 11
Among economic instruments, by means of which the state influences market economy, taxes play the important role. In conditions of market economy any state widely uses a tax policy as the certain regulator of influence on the negative phenomena of the market. Taxes, as well as all tax system, are the powerful tool of management of economy in conditions of the market.
The use of the taxes is one of the economical methods of government and maintenance of interconnection of the interests of the State with individual persons, commercial organizations forms of ownership and organizational - the legal form of the enterprise. By means of taxes mutual relations of businessmen, the enterprises of all forms of ownership with the state and local budgets, with banks, and also with the higher organizations are defined.
1) Taxes and the Tax Law
A tax is a compulsory charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e.g., tribes, secessionist movements or revolutionary movements). Taxes could also be imposed by a sub national entity.1
A tax shall be defined as an obligatory and individually non-refundable payment collected from organisations and individuals in the form of alienation of money resources owned by them by right of ownership, economic jurisdiction or operational management for purposes of financing the activity of the state and/or municipalities.2
Taxes play the most important role of the state revenue. In 2002 the taxes made up 81,21% 3 of the profitable part of the federal budget.
Tax law is the codified system of financial laws that describes government levies (taxes) on economic transactions. The tax law represents a branch of legal system of the Russian Federation which regulates public relations in the sphere of the taxation, which means the relations in connection with the realization of taxation and other obligatory payments, the organization and functioning of the system of tax regulation and the tax control over the all levels of the government and local self-government.
Legislation on taxes and charges consists of the Tax Code, federal and regional laws, local regulative acts. Tax laws which had been adopted before the Tax Code came into force are valid in the part not conflicting with the Tax Code.
A comprehensive Tax Code has been progressively introduced since 1999 and is now largely implemented. The Tax Code is the main legislative tax act which consists of two parts. The first part includes general definitions, lists rights and duties of taxpayers and tax authorities, sets forms and methods of tax control, establishes liability for tax offences, and so on. The second part of the Tax Code consists of chapters covering individual taxes – VAT (Value Added Tax), tax on profit and others. Orders, instructions, guidelines of the Ministry for taxes and charges are mandatory only for the tax bodies and do not relate to tax legislative acts. Only instructions on the order of filling in tax returns are mandatory for taxpayers.
The current tax structure was introduced in 1992 and follows the federal nature of Russia in that the various republics and regions that comprise the Russian Federation have certain rights as regards levying taxes. Taxes may be viewed as follows:
Federal: Applied in the whole of the Russian Federation, at uniform rates. Examples of this category are: Value Added Tax (20%)5, customs duty, income tax from physical persons, enterprise profit tax.
Regional: Applied in the whole of the Russian Federation, but the entire tax rate, or the locally collected portion, is determined regionally. Collection of the tax is split between the amounts allocated regionally, or to the centre. An example of this category is corporate Profits Tax (currently, the federal component is 6.5 percent, with additional regional components of 13.5 - 17.5 percent)6.
Local Taxes: established by the local or regional authority and has only local force. Collection is entirely local. An example of this category is a Land Tax.
Date of enforcement
Federal laws introducing amendments to the Tax Code that establish new taxes and charges, regional and local acts of tax legislation introducing new taxes (charges) take effect not earlier than January 1 of the year following the year of their adoption and not earlier than one month after their official publication.
Other legislative acts on taxes and charges come to force not earlier than upon expiry of one month after the date of their official publication and not earlier than first day of the next tax period set for the specific tax.
Legislative acts on taxes (except charges) also take effect not earlier than the first day of the next respective tax period.
Elements of taxation
According to the Article 17 of the Tax Code of the Russian Federation "General Conditions of Imposition of Taxes and Fees" ,
"1. A tax shall only be considered as imposed if the taxpayers and the elements of taxation are defined, namely,"
Object of Taxation (Art. 38 of the Tax Code)
Tax Base (Art. 53 of the Tax Code)
Tax Period (Art. 55 of the Tax Code)
Tax Rates (Art. 53 of the Tax Code)
Procedure of Tax Assessment (Art. 52 of the Tax Code)
Deadlines and Procedure for Paying Taxes and Fees (Art. 57, 58 of the Tax Code)
"2. In tax imposition, a legislative act on taxes and dues may also provide if necessary tax benefits and grounds for using them by the taxpayer.
3. In imposing fees, their payers and elements of taxation shall be defined relative to particular fees."7
Taxpayers are organizations and natural persons who are under an obligation to pay taxes and/or charges.
Registration of taxpayers
All organisations and individual entrepreneurs must be registered with tax bodies within 10 days following the date of their state registration.
Registration with tax bodies is performed at the place of organisation's location (residential address for individual entrepreneurs)
An organisation acting via separate divisions, property or vehicles must register both at its place of location and at the place of location of each of its division and its property
Natural persons who are not individual entrepreneurs are not obliged to register with the tax bodies on their own
Each taxpayer is given a personal identification number of taxpayer when registered with the tax bodies
Rights of taxpayers:
To claim full compensation for losses caused by unlawful decisions of the tax bodies or unlawful actions (inactions) of their officials
To receive from the tax bodies at the place of registration free information on current taxes and charges, legislation on taxes and charges, and also on the rights and duties of taxpayers, and powers of the tax bodies and their officials
To receive written explanations on application of tax legislation from the tax bodies and other authorised state bodies.
To represent their interests before the tax bodies in person or via their representative
Duties of taxpayers:
To pay taxes and charges set in accordance with law
To register with tax bodies
To keep records of their income (expenses) and objects of taxation
To file tax returns and financial reports and to provide documents required to calculate and pay taxes to the tax bodies and their officials
To fulfil lawful requirements of tax bodies to eliminate tax offences revealed and not to hinder lawful activity of tax officials
To provide tax authority at the place of registration with information