Azrapkina, O. V., Filippova, N. A. Evaluating Efficiency of Tax Administration of Activity of Small and Medium Business Entities in the Republic of Mordovia

Abstract: The subject under research is the activities performed by small and medium business entities in the Republic of Mordovia. The efficient system of tax administration is one of the main conditions for full and timely revenues of taxes payable by small and medium-sized enterprises. There are many qualitative and quantitative indicators that are used to evaluate the efficiency of tax administration but the most important ones are the indicators of efficient inspection as the main function of tax administration. For the purposes of tax control over calculation accuracy and timely and full tax payment by small and medium-sized enterprises tax inspectorates of the Republic of Mordovia conduct cameral and field tax inspections. Results of these inspections are collected by the Supervisory Department of the Directorate of the Federal Tax Service of the Russian Federation. Based on this data the authors of the present article evaluate the efficiency of the supervisory work performed by the tax inspectorates of the republic. Methodological base of the research includes the systems analysis, dialectic approach, deduction and induction methods, the comparison and analogy methods, methods of mathematical economic modeling, mathematical and statistical methods, grouping methods, observation and other research methods. Therefore, the efficiency of tax administration of small and medium business activities in the region can be raised through: – constant monitoring of indicators that assess productivity of inspecting different categories of taxpayers, the number of personnel hours per inspection and the amount of additional charge of tax per hour spent on inspection; -establishment of tax positions in the sphere of trade activity; – comparison of the actual expenditure of materials on manufacture of products with the established material consumption rates and the actual output and sales of products in the sphere of industrial production;– development of measures for discovering fly-by-night companies; – reasonable selection of taxpayers for field tax inspection and improvement of a pre-inspection analysis including that by the means of creating a unified automated information database. The authors make an assumption that application of efficient methods and practices by tax authorities in regard to small and medium-sized enterprises will significantly increase tax revenues into the budget.

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