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DOI: 10.7256/2454-065X.2022.1.37560
Received:
17-02-2022
Published:
15-03-2022
Abstract:
The object of the study is the tax potential of the subjects of the Far Eastern Federal District (Far Eastern Federal District). The subject of the study is a set of relations and processes arising within the framework of the development and use of the tax potential of the Far Eastern Federal District regions. Particular attention is paid to the construction of models to assess the impact of the tax gap on regional economic growth. In the current conditions, against the background of an unstable economic situation, the issue of developing the tax potential of the regions is particularly acute, since the resources of the federal center are extremely limited. In this regard, the main purpose of the study is to develop a methodological approach to assess the use of the tax potential of the region, to test it on the example of the subjects of the Far Eastern Federal District and to determine its impact on the regional economy. This paper presents the author's definition of the category "tax potential of the region" and its author's classification. The main conclusions of the study are related to the determination of the difference between the nominal and realized tax potential, which makes up the tax gap. Regional authorities purposefully create this gap by providing tax preferences. To assess the impact of the tax gap on the main socio-economic parameters of the region's development, the authors have developed a methodological approach based on regression analysis, the elements of scientific novelty of which are the constructed models for the subjects of the Far Eastern Federal District, allowing to assess the impact of changes in the tax gap on the regional economy over the past 10 years. This approach can be applied in practice and used by the state authorities of the subjects of the Russian Federation in developing the main directions of tax policy related to the effective use of the tax potential of territories from the perspective of economic growth.
Keywords:
regional economy, tax policy, consolidated budget, tax revenues, tax potential, tax preferences, regression, gross regional product, income of the population, investment
This article is automatically translated.
In modern conditions, the development and economic growth of the subjects of the Russian Federation largely depends on their tax policy. When building it, regional authorities should take into account not only the potential amount of tax revenues, but also the multiplicative effect of tax preferences exerted on the regional economy. Due to the fact that investors prefer to "enter" regions with the lowest level of tax burden for them, the state has created various mechanisms to attract them: territories of special socio-economic development (TOSER), the free port of Vladivostok (SPV), regional investment projects, special investment contracts, priority investment projects, concessions, public-private partnerships, etc. – in which investors are provided with tax benefits and various preferences. At the same time, tax revenues are the main source of financing of state programs and mandatory budget expenditures [1]. Considering that today about 70 subjects of the Russian Federation remain subsidized, the issues of assessing the use of tax potential are relevant. The powers of the subjects of the Russian Federation to determine the main parameters of taxes are fixed in the Tax Code of the Russian Federation: these are rates and benefits for regional taxes, reduced rates for certain categories of taxpayers for federal taxes. It should be noted that when planning a regional tax policy, namely the provision of benefits and other tax preferences, an important step is to assess the tax potential: determining its size and degree of use. In this regard, the main purpose of the study is to develop a methodological approach to assess the use of the tax potential of the region, to test it on the example of the subjects of the Far Eastern Federal District and to determine its impact on the regional economy. The main objectives of the study: 1) consider approaches to the interpretation of the concept of "tax potential" and study its classification; 2) develop an algorithm for assessing the use of tax potential by regions; 3) to test the proposed method and assess the impact on the economy on the example of the Far Eastern Federal District regions. Currently, there is no clear definition of the concept of "tax potential" in the regulatory literature. The Budget Code of the Russian Federation (Article 138) gives the following interpretation of the tax potential: "tax revenues per inhabitant that can be received by the budget of a municipal district (municipal district, urban district, urban district with intra-urban division) or the consolidated budget of a municipal district (municipal district budget, urban district budget, consolidated urban district budget with intra-city division) based on the level of development and structure of the economy and (or) the tax base" [2]. At the same time, domestic and foreign authors adhere to different approaches (Table 1). Table 1 – Classification of approaches to the interpretation of the term "tax potential of the region" | Name | Representatives | The essence of tax potential | | Fiscal approach | Gorsky I. V. [3], Matrusov N. D. [4], Prokopenko R. A. [5], Lotz J. R., Mozz E. R. [6], Hoynes H. [7] |
the maximum amount of tax revenue that can be collected in a certain territory under the current tax system | | Resource approach | Kolomiets A. L., Melnik A.D. [8], Osipova E. S. [9], Bed R. M. [10] | the total amount of taxable resources of a certain territory | | Institutional approach | Dzagoeva M. R., Slanov A. E. [11] | the ability of subjects of tax relations to form the flow of tax payments in a certain territory | | Mixed approach | Shalyukhina M. N. [12], Arkhiptseva L. M. [13] and others. | the maximum amount of tax revenues of the budget, taking into account the available resources and parameters of the taxation system in a certain territory | Thus, economists consider the tax potential both in a broad sense (the totality of taxable resources) and in a narrow sense (the maximum amount of tax revenues). Matrusov N. D. considers the tax potential as the maximum possible amount of tax revenue that can be collected from a certain territory. The same position is held in their works by Lotz J. R. and Mozz E. R. In turn, Kolomiets A. L. and Melnik A.D. define the tax potential as a set of objects of taxation. Bede R. M. considers the tax potential through the function of mobilizing financial resources that are subject to taxation. Each approach has its drawbacks. In particular, the fiscal approach does not take into account the specifics of the tax base and its capabilities. The resource approach, on the contrary, considers only the amount of taxable resources, without taking into account the size of tax rates and benefits. A mixed approach is more objective. Therefore, in this study, we will define the tax potential of the region as a set of tax resources of the region, which, under the current taxation parameters, are converted into tax revenues of the budget. Due to the variety of approaches, there are also different classifications of tax potential (Fig. 1).
Figure 1 – Classification of the tax potential of the region The analysis of scientific papers has shown that the issue of using the tax potential remains poorly understood. The vast majority of authors study the problems of determining the volume of tax potential, consider methods and tools for more accurate assessment of it. And only a few mention the issue of further use of the tax potential. Thus, M. P. Maloletkina writes: "it is not enough to form the tax potential of the territory, it is necessary to realize it into the tax revenues of the territory with the maximum possible efficiency" [18]. Therefore, this paper proposes a new methodological approach to assessing the level of use of tax potential, which will answer the following questions: "What is the level of realization of tax potential?", "What is the effect of underutilization of tax potential for the economy of the region?". In this regard, we will use this classification of tax potential: the nominal tax potential of the region is the maximum amount of tax revenue that can be received by the budget of the region with full payment of taxes on all taxable resources (full use of opportunities); the realized tax potential of the region is the amount of tax revenue that has entered the budget of the region under the current taxation system (actually accumulated). This classification makes it possible to assess the results of the tax policy pursued by the regions: what economic effect has been obtained from the establishment of reduced tax rates and the provision of tax benefits, whether the goals of providing tax preferences have been achieved. In other words, to what extent the gap between nominal and realized tax potential has affected the dynamics of socio-economic indicators. In accordance with the proposed classification, we will develop a methodological approach to assessing the implementation of the tax potential of the region and test it on the subjects of the Far Eastern Federal District (hereinafter – the Far Eastern Federal District). Algorithm for assessing the use of tax potential: 1) calculation of the nominal and realized tax potential of the region for a certain period; 2) determination of the degree of use of tax potential; 3) construction of equations of dependence of socio-economic indicators on the value of the gap; 4) assessment of the identified influence (grouping of subjects); 5) determination of the optimal level of tax potential. To calculate the nominal tax potential of the region, we will use formula 1 [19]: NPnom = Npost + NL + NZ (1) where  is the amount of taxes received,  is the amount of tax benefits granted,  is the amount of tax arrears. This formula was not chosen by chance, since in modern scientific works the authors note the leading role of tax administration in the formation and realization of tax potential [20]. At the same time, the calculation of the amount of taxes received, tax benefits and arrears will be made on the basis of data from the consolidated budgets of the subjects of the Far Eastern Federal District. The consolidated budget reflects the full picture of the emergence and expenditure of financial resources by budgets of all levels in the relevant territory. Since in the future the work will use indicators of socio-economic development of the regions as a whole, as a single territory, it is necessary to take into account not only the tax revenues of the regional budget, but also local budgets. We take the realized tax potential of the region equal to the volume of tax revenues received in the consolidated budget for the year. Table 2 shows the obtained values of the tax potentials of the subjects of the Far Eastern Federal District, according to statistical tax reporting [21]. Table 2 – Estimated data for 2020
| Name of the subject of the Russian Federation | Nominal NP, million rubles. | Realized inventory item, million rubles. | Gap between nominal and realized NP | | million rubles . | % | | Sakha Republic | 152 782,7 | 139 042,5 | 13 740,2 | 8,99 | | Kamchatka Region | 38 545,7 | 36 619,8 | 1 925,9 |
7,60 | | Primorsky Krai | 121 026,5 | 111 826,6 | 9 199,9 | 21,42 | | Khabarovsk Territory | 120 303,3 | 94 532,4 | 25 770,9 | 5,88 | | Amur region | 72 076,2 | 67 835,3 |
4 240,9 | 5,00 | | Magadan region | 39 584,3 | 28 621,5 | 10 962,8 | 27,69 | | Sakhalin Region | 139 568,3 | 136 042,9 | 3 525,4 | 2,53 | | Jewish Autonomous Region | 8 022,7 |
References
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First Peer Review
Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.
The subject of the study. The article is devoted to determining the content of the tax potential of the region and its assessment. It should be noted that the title of the article does not correspond to the content of the article, since the title indicates "assessment of the use of tax potential". The author is recommended to adjust the title of the article taking into account the content of the article. Research methodology. In conducting the research, the author uses methods of comparing different approaches to interpreting the content of the tax potential of the region, as well as econometric methods in conducting its assessment. It is valuable that the results of calculations are accompanied by a graphical representation in the form of tables and graphs, which increases the level of visual perception. It is important to note that the results obtained are accompanied by subsequent interpretation. Relevance. The relevance of assessing the tax potential of regions (especially the subjects of the Russian Federation) is beyond doubt neither from a theoretical point of view nor from the standpoint of solving specific practical problems. Indeed, the implementation of a responsible tax policy will ensure the growth of resources for the financial support of the implementation of state programs of the Russian Federation, subjects of the Russian Federation, national, federal and regional projects, and thereby achieve the national development goals of the Russian Federation, defined by the Decree of the President of the Russian Federation dated 07/21/2020. Scientific novelty. There is a scientific novelty in the article. In particular, the author has carried out a classification of approaches to the interpretation of the term "tax potential of the region". Moreover, when conducting the classification, the author took into account not only domestic, but also foreign scientific works, which allowed for a better scientific study. The author substantiates a proposal for the use of a regression model for determining the level of tax potential. At the same time, it is valuable that effective factors have been identified for key taxes, the revenues of which are credited to regional and local budgets. At the same time, it is recommended to clarify in the text of the article the expediency of accounting for tax revenues credited to the budgets of municipalities when determining the tax potential of the region. The article could also be strengthened with proposals to expand the practice of using tax potential in government decision-making (taking into account the title of the reviewed article). Style, structure, content The style of presentation is strictly scientific. At the same time, it is recommended to correct a number of technical points: to abandon the abbreviation "RF" when naming the Russian Federation, specify the data sources under each graphic object according to GOST requirements. It is also recommended to enter abbreviations used (for example, TOSER, SPV, RIP, SPIK, PIP) into the text, writing in full at the first mention. This will ensure that the risk of the reader not understanding the content of individual fragments of the article is eliminated. Structurally, the article is structured mainly competently: in the introduction, the relevance of the research is determined (it is recommended to add the purpose, objectives and methodology of the study), the content of the key terminological apparatus on the problem under consideration is studied with the classification of approaches, the main part presents the results of the author's empirical research using bright graphic objects. At the same time, there is no meaningful section in the article "conclusion", where key conclusions and generalizations based on the results of the study of the issue under consideration would be presented. The content of the article partially corresponds to the selected title, but the problem is solved by correcting the title of the article. It should also be noted that at the beginning of the article, when determining relevance, the author rightly says that "in modern conditions, the development and economic growth of the subjects of the Russian Federation largely depends on their tax policy," but to what extent can the subjects of the Russian Federation influence the establishment of elements of taxation on taxes, the collection of which forms the bulk of regional budget revenues? When making calculations, the author uses data for 2020. How correct is it to compare with data from other years? It is recommended to assess the impact of the 2020 coronacrisis on the amount of tax potential. The author concludes that in all subjects of the Far Eastern Federal District, with the exception of the Kamchatka Territory, there is a tendency for the gap in tax potential to grow. However, the data in Table 3 indicate the presence of this trend in other regions (for example, in the Republic of Yakutia, in the Amur Region, in the Jewish Autonomous Region, etc.). It is recommended to clarify the content of the author's judgment, taking into account the above factual results of assessing the gap in tax potential. Bibliography. The author presents at the end of the article a bibliographic list consisting of 22 sources, including 8 foreign ones, which allows us to conclude that the author is responsible for studying scientific literature on the chosen research topic. It is also valuable that the author relies on official statistical sources (databases of the Federal State Statistics Service and the Federal Tax Service), which allowed the author to conduct an interesting empirical study of the problems under consideration. At the same time, the author has not studied scientific publications in 2020-2021. The elimination of this remark would allow the author to take into account the current trends of the scientific community towards solving the problems raised in the text of this article, thereby ensuring higher quality and attracting a wider readership. When making a list of references, it is recommended to add the date of reference to the specified electronic sources. Appeal to opponents. The above-mentioned wide list of sources in the bibliographic list was actually formed on the basis of their study and active scientific discussion throughout the text (both in determining the content of the terminological unit under consideration "tax potential of the region" and in interpreting the numerical data obtained). Conclusions, the interest of the readership. The reviewed scientific article is of great interest to the readership, both because of the relevance of the research topic and from the point of view of the high level of its disclosure using the author's approach, including on the basis of a wide array of data. However, a number of technical errors do not allow us to recommend this article without eliminating them.
Second Peer Review
Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.
Assessment of the use of tax potential in the context of socio-economic development of the region The tax potential of the region is the maximum amount of revenue of the budget system, potentially accumulated in the form of taxes, fees and other mandatory payments from economic entities of the territory within the framework of current tax legislation, taking into account the economic development of the region. There are no uniform and approved definitions and an approach to assessing the tax potential of the region. The tax potential of a region is determined by the level of its socio-economic development, investment climate, tax burden and other factors. The assessment of the tax potential of the region and the degree of its realization seems to be a very non-trivial research task. The article is devoted to the study of the problems of assessing the tax potential of the region and the tax gap. The sections are not highlighted in the article, which does not meet the requirements of the journal. At the same time, the material in the article is structured. The introduction substantiates the relevance and significance of the study of approaches to determining and assessing the tax potential of the region, identifies the focuses and objectives of the study. Next, the author analyzes approaches to determining the essence of the tax potential of the region, highlighting fiscal, resource, mixed and institutional approaches that are currently formed by domestic scientific schools. The author provides an algorithm for assessing the use of the tax potential of the region, assessing the tax gap, and testing them for the regions of the Far Eastern Federal District. The author also uses correlation and regression analysis to determine the relationship between indicators of the dynamics of the tax gap at the regional level and indicators of socio-economic development. In conclusion, the conclusions are formulated, as well as possible directions for further research are described. Regarding the title of the article, we suggest that the author work out options for its correction, since the wording "in context" does not seem quite appropriate. Perhaps a more appropriate option is "based on" or "taking into account". The methodological basis of the research is analysis, synthesis, ascent from the abstract to the concrete, logical and historical method, as well as other general scientific methods. Among the specific economic methods, the author actively used economic analysis, coefficient analysis, analysis of dynamics series, correlation and regression analysis. Attention is drawn to the abundance of illustrative material in the article, which helps to increase the level of perception of the research results by readers of the journal. At the same time. Please note that table 3 does not fit into the width of the page in the presented version. The relevance of the article is beyond doubt. The Russian model of tax federalism limits the range of tools for developing tax potential for regions, however, those that currently use the capabilities of these tools have competitive positions in terms of economic development and investment attractiveness. As part of the management of the tax potential of the region and its development, it is necessary to assess and analyze the factors of the tax gap. The presented article is devoted to solving these scientific problems. The article has practical significance, since the presented options for assessing the tax potential of the region and the tax gap (as an indicator characterizing the difference between the nominal and realized tax potential of the region) can be used by authorities to determine the possibilities for developing tax potential and increasing the degree of its realization by reducing the tax gap. The approbation of these approaches given in the article on the example of the regions of the Far Eastern Federal District as a practical illustration confirms the availability of opportunities to implement the research results. At the same time, we draw attention to the need to supplement the data in Figure 6 and the conclusions based on it with the results of correlation and regression analysis in terms of the coefficient of determination and evaluation of the statistical significance of the presented equations. The article reveals the elements of scientific novelty possessed by the author's research. The grouping of regions "according to the use of the tax gap" is of interest. At the same time, we propose to replace the wording "using the tax gap", it is more appropriate to "influence the tax gap", or, as in the conclusions, "dependence of socio-economic indicators on the tax gap". Such a grouping of regions, where there is a correlation between the dynamics and level of the tax gap and investor support, social security and stimulation of economic growth, can be transposed to all regions of the Russian Federation. Determining the possibilities of realizing tax potential by reducing the tax gap also has elements of scientific novelty. The presentation style is scientific and meets the requirements of the journal. At the same time, some shortcomings and errors are not excluded. For example, in the first paragraph, "the multiplicative effect of tax preferences on the regional economy" (to be replaced by "influencing"). The bibliography is presented by 24 sources: research by domestic and foreign scientists, as well as international analytical databases. The advantages of the article include, firstly, the relevance and significance of the chosen research area. Secondly, the author's broad view of the problem under study. Thirdly, the completeness of the presented analysis of economic indicators of the development of the tax potential of the regions of the Far Eastern Federal District based on an assessment of the socio-economic development of the regions. Fourth, the breadth of use of illustrative material. The disadvantages include the following. First, the need to clarify the title and individual formulations in the text of the article. Secondly, there is a need to supplement the data in Figure 6 and the conclusions based on it with the results of correlation and regression analysis in terms of the coefficient of determination and evaluation of the statistical significance of the presented equations. Thirdly, the need to highlight sections of the article and formulate appropriate subheadings. Conclusion. The article is devoted to the study of the problems of assessing the tax potential of the region and the tax gap. The article is able to arouse the interest of a wide readership of the magazine. It is recommended to accept for publication in the journal "Taxes and Taxation" despite the comments indicated in the text of this review due to the insignificance of the latter.
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