Control function of taxes: description and examples

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The essence and objectives of taxes are primarily expressed in the functions they perform. There are many of the latter. We will characterize each of them, dwelling in detail on the control function of taxes and the Federal Tax Service. Here is its description, examples.

What counts as a tax?

Next, we will analyze the control function of the tax authorities and taxes. First, consider the characteristics of the term.

Tax is an individual gratuitous obligatory payment levied forcibly by special state bodies from individuals and various organizations. The purpose of such a collection is to ensure the financial activities of both the state in general and its municipalities.

At the same time, taxes are distinguished from all kinds of fees and duties, the collection of which is not free of charge, but is a condition for the payers to perform certain actions, provide them with public services, draw up any documentation, etc.

The collection of taxes in the Russian Federation is regulated by the Tax Code. All of them are divided into federal, local and regional. List of specific taxes in eachfrom the groups approved in the Tax Code.

The totality of all established taxes, forms, methods, principles of their collection, establishment, abolition, control and change is the tax system of the state.

It is important to highlight such tax elements as:

• Taxpayers.
• Tax base.
• Objects of taxation.
• Tax benefits.
• Tax units.
• Orders of calculus.
• Tax rates.
• Sources of tax.
• Tax periods.
• Payment procedures.
• Tax salaries.
• Deadlines for paying taxes.

These contributions to the state treasury are a very common category. Therefore, several classifications have been introduced regarding taxes:

• Direct and indirect.
• Chord and Income.
• Regressive, progressive and proportional.

Spectrum of functions

The control function of taxes is just one of the components. In total, there are several of them:

• Fiscal.
• Regulating.
• Social.
• Control function of taxes.

Now let's voice the characteristics of the categories from this list.

Control room

Let's analyze the essence of the tax control function. This function is designed to create prerequisites for maintaining the proportions of values in the process of formation and further distribution of income of various economic entities. It is thanks to her that it is possible to clearly evaluate the effectivenessthis or that tax channel, as well as the tax "press" on the population. It is possible to identify the need for changes in tax policy.

The control function of taxes allows the state to monitor both the timeliness and completeness of the receipt of funds in the state budget. When collecting, it also helps to track and compare their values.

Taxes allow the state to exercise control over the financial and economic activities of its citizens. Keep track of their sources of income and expenses.

Example of the control function of taxes: there is an assessment of the amount of money received from individuals and organizations. Then - a quantitative comparison of income indicators with government needs for financial resources. Subsequently, on the basis of these data, the effectiveness of the created tax system is evaluated, control over financial flows and various types of activities of citizens is ensured. This function also makes it possible to identify the need for correction of the Tax Code and the budgetary policy of the state as a whole.

Knowing what the control function of taxes is, we will not identify it with tax control. It is carried out by both tax and customs authorities, certain units of off-budget funds. The task of all these departments is to monitor compliance with tax laws through various forms of tax audits.

Social

We have analyzed what the control function of taxes is. Social is somewhatdetached from it, but at the same time closely connected with the regulatory and fiscal. It is expressed through the collection of property and income taxes. In a larger amount, such fees are paid by the we althy part of the population, so that this money in the form of social benefits goes to poor citizens.

Concrete mechanisms for the implementation of this social function - insurance payments. As for the personal income tax specifically, there are the following lists:

• Income that is not taxable.
• Tax standard deductions.
• Professional tax deductions.

In addition, a list of incomes subject to increased tax rates is being introduced.

Fiscal

The fiscal function can be said to stem from the very nature of the tax. It is typical for states of different systems and different eras. It is during its implementation that state resources are formed and the necessary material resources are created to ensure the existence of the state.

The main task in implementing this function is to ensure a stable revenue item for budgets of all levels. This is the broadest concept of all the functions identified in this article. This is understood not only to ensure the participation of citizens in the formation of the budget, from which the national needs are financed.

Note that the implementation of the fiscal tax function also has a number of subjective, objective limitations. If tax revenues are insufficient and government spending becomes impossiblereduce, then you have to resort to other forms of attracting revenue to the treasury. For the most part, these are external and internal state, local, regional loans. The negative point is that they contribute to the accumulation of public debt.

Its maintenance in the future at the expense of budgetary funds often leads to an increase in the tax burden on the population. This causes dissatisfaction among taxpayers and leads to a decline in production. The consequence is the taking of new state loans. As a result of this, a financial pyramid is built, which is not infinite in its essence. At a certain moment, it collapses, turning into a collapse both for the country's budget and for the savings of citizens. There are many examples in history.

Regulatory

No less than the control function of taxes, it is also important to regulate. In modern anti-crisis conditions in the Russian Federation, it is of particular importance. This is the embodiment of the active influence of the state on social and economic life.

Temporarily, this function is associated with the redistribution of tax payments between legal entities and individuals, various economic sectors, the state and its territorial entities. Its main task is to regulate the level of income of various categories of the population. This is embodied through a system of tax collections, benefits and payments.

The purpose of the benefits is to reduce the tax liabilities of specific groups of citizens. The following stands out here:

• Withdrawals. Benefit aimed at removing from taxationspecific types of objects.
• Discounts. These are benefits aimed at reducing the tax base.
• Tax credit. Benefit aimed at reducing salaries or tax rates.

For tax credits, they can take the following forms:

• Reducing tax rates.
• Salary cuts.
• Tax holidays - complete exemption from paying taxes for a specific period of time.
• Refund of previously paid tax - full or partial.
• Deferment or installment plan of tax payment. This includes investment tax credits.
• Credits for prior taxes.
• Replacing the payment of tax (or the payment of some part of it) with a natural expression.

This function is aimed at regulating the financial and economic activities of various companies and enterprises through a system of tax payments that are accumulated by the state and are intended to restore spent resources (mostly natural), to involve them more in the future in production, to accelerate economic growth.

Regulatory taxes typically include the following:

• Tax on the reproduction of mineral resources.
• Tax on subsoil use.
• Tax on obtaining the right to use objects of the animal world, aquatic biological resources.
• Water tax.
• Forest tax.
• Environmental tax.
• Road tax.
• Property tax.
• Transport tax.
• Landtax.

It is important to note that the regulatory tax function manifests itself not only in the sphere of production. It also operates through the solvency of individuals.

Tax subfunctions

The control function of taxes is to evaluate the effectiveness of tax channels and subsequently adjust the relevant legislation on this basis.

But in addition to this and other functions, there are also sub-functions of taxes. They come from the regulatory. There are three of them:

• Reproductive.
• Stimulating.
• Destimulating.

Let's analyze these subcategories in detail.

Stimulating subfunction

The purpose of this tax sub-function is to support the development of various economic processes. Implementation takes place through a system of benefits and tax exemptions.

For example, the modern tax system of the Russian Federation provides a whole range of preferences to small businesses, associations of the disabled, entrepreneurs engaged in agriculture, organizations involved in charity, and so on.

Destimulating subfunction

As the name implies, it is the opposite of the previous, stimulating tax subfunction. What is the point here? With the help of a destabilizing sub-function, the state, on the contrary, slows down some economic processes.

Reproducing subfunction

The main task of such a tax sub-function is to accumulate funds for the restoration of national resources.

Examples here are deductionscontributions for the reproduction of the mineral resource base, restoration of the country's water resources, etc.

Incentive feature

In some systems and classifications, in addition to the control, social (redistributive), regulatory and fiscal, sometimes there is also an incentive function. It expresses the recognition by the state of the merits of certain categories of the population. In the Russian Federation, these are, for example, participants in the Second World War, heroes of Russia, the Soviet Union, etc.

At its essence, this function is the adaptation of the tax system to the social policy of the state. Thus, deductions are made from the taxable income of citizens for the maintenance of dependents, minor children, the construction and purchase of housing, and the implementation of charitable assistance. The tax base is also reduced in connection with the social expenses of a citizen - the purchase of medicines, paid education for children, and so on.

Functions of tax authorities

Above, we analyzed the control and other forms of tax functions. They are different in relation to the tax authorities. For example, the control functions of the Federal Tax Service of the Russian Federation will be somewhat different than the tax itself.

Let's consider their range in relation to tax authorities:

• Fiscal. Ensuring that fees paid by citizens and organizations are credited to the accounts of the Federal Tax Service in a timely manner and in full.
• Law enforcement. This is the identification of violations of tax laws, as well as their timely suppression. For example, the introduction of various pen alties for late tax payments,violations in reporting documentation, etc.
• Consulting (or informational). The tax authorities have a direct obligation to inform payers about the rules for paying taxes, norms and changes in the Tax Code.
• The control function of the tax authorities. Implementation of control over compliance with the tax code, accounting of taxpayers.

Additional tasks of the Federal Tax Service

Let's list additional control functions of the tax authorities:

• Control over the correctness of the calculation, completeness and timeliness of making tax payments to the state treasury.
• Control over the production and subsequent circulation of ethyl alcohol, alcoholic and tobacco products.
• Control over compliance with currency legislation within the competence of the Federal Tax Service.
• Monitoring taxpayer information.

The control function of taxes allows the state to track the volume and completeness of the receipt of these payments, to analyze the quality of tax channels. And on the basis of these data, adjust the tax code and budget policy. As for the control functions of the Federal Tax Service, they are different from the functions of taxes themselves.