Tax administration and its development trends
Tax administration is a system for managing the process of taxation by public authorities.
Under tax administration (HA) followsto understand the constantly evolving dynamic process that coordinates all the work of the tax authorities in the conditions dictated by the modern market economy.
Tax administration is an activityspecial government bodies and state power, whose purpose is to implement the adopted laws on taxes and fees, as well as to control the functioning of the taxation system.
From the correctness and consistency of actions, ultimately depends the success or failure of the fiscal policy of a particular country.
The elements of tax administration are:
- hierarchy or structure of tax authorities;
- duties and rights of tax authorities;
- established procedure for collection, processing and control over tax reporting;
- granting of privileges for payment of taxes and application of appropriate sanctions;
- generalization and maintenance of tax statistics, regulation of external tax relations with states.
Tax administration at the macro level must solve such problems:
- to analyze macroeconomic processes of taxation and to develop initial data for forecasting their future development;
- assess the deviations of the actual values of economic macroeconomic indicators from those expected, identify the reasons for the non-compliance;
- to conduct detailed (for the near future) and conceptual (for further perspective) development and refinement of tax legislation.
AT tasks at the microlevel:
- introduce adopted tax laws;
- ensure the daily activities of the tax authorities in collecting taxes and fees to the budget;
- Develop and conduct organizational measures to increase the effectiveness of the tax authorities.
Under the criterion of the efficiency of functioningtax administration is understood to mean the mobilization of taxes and fees in those amounts that are scientifically justified while minimizing the costs of maintaining the functioning of the tax system of the state.
Tax administration in the conditions of the present must continuously monitor such processes:
- a steady increase in the level of tax mobilization;
- creation of a transparent and equitablewhich provides for reducing the costs of tax payers for the high-quality implementation of tax legislation and creating for them the most convenient conditions for paying taxes;
- ensuring equal and fair taxation conditions for such legal entities that operate on the same business entity.
Principles of tax administration
Today NA is based on the following basic principles:
- transparency and predictability;
Analyzing the trends of development of HA, one canconclude that in order to achieve the maximum effect and stability of the tax potential, it is necessary to carry out a comprehensive reform of three interrelated components - the budgeting system, the state tax policy and tax administration.
Recently, large-scalemeasures for the reorganization of activities in the tax service and the development of an integrated model of the functioning of tax authorities. Particular attention is paid to the practice of the principle of self-assessment as a mechanism that corresponds to the tax system of the developed countries of the world. If a large percentage of taxpayers do not voluntarily fulfill their obligations to the state, the tax system is not in a position to successfully cope with its duties. Tax administration will be effective only if it is based on an understandable regulatory framework, established technology of work, and a clear presentation of taxpayers about what they can expect from the taxation system.