Tax Expertise in the Tax Administration System

Musa Shamsudinovich Basnukaev

1,2 a

and Reseda Ruslanbekovna Madaeva

Chechen State University, Grozny named after A.A. Kadyrova, Grozny, Russian Federation

Laboratory of Economic Research, Integrated Research Institute named after H.I. Ibragimova RAS, Grozny, Russian

Federation

Keywords: Taxes, tax expertise, tax control, tax administration.

Abstract: The variety and complexity of tax relations require a large amount of special knowledge, so the number of

appointments of forensic tax examination in court is increasing. It seems that tax expertise should be singled

out as a separate type of expertise, as requiring special knowledge in the field of tax legal relations, as well as

having an independent subject, object. A feature of not only tax, but also other examinations is the fact that

the appointment and evaluation of the expert's opinion is carried out by law enforcement agencies, courts, and

research is allowed only by independent experts. Consequently, the quality of examinations is influenced by

the selection of documents provided to the expert for the study, their completeness and quality, as well as the

formulation of questions, the accuracy of wording, etc. The direction of improving forensic tax expertise as a

method of tax control is the use of digital technologies in conducting research and presenting the results of

such research.

1 INTRODUCTION

Economic relations in Russia, as in most countries of

the world, are expanding, this entails the complication

of institutions interacting with business entities, incl.

institute of tax administration. The tax system of

Russia is dynamic, which in this case cannot always

be considered as a positive factor: changes in

legislation, algorithms and mechanisms for the

interaction of tax authorities and business entities, a

large number of taxes and several options for tax

regimes, other reasons become causes of

disagreement between participants in tax relations

which are decided by the court.

2 MAIN PART

The variety and complexity of tax relations require a

large amount of special knowledge, so the number of

appointments of forensic tax examination in court is

increasing. There is no normatively established

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https://orcid.org/0000-0001-8025-9132

definition of forensic tax examination; the general

concept of forensic examination is enshrined

in Art. 9 of the Federal Law “On State Forensic

Activities in the Russian Federation” and is defined

as follows - this is “a procedural action provided for

by the legislation of the Russian Federation on legal

proceedings, which includes conducting research and

giving an opinion by an expert on issues requiring

special knowledge in the field of science, technology,

arts or crafts (No. 73-FZ, 2001). This definition

corresponds to the practical needs of tax expertise.

Forensic tax examination performs several

functions, it is:

− an instrument of tax control, providing

feedback;

− evidence in court;

− prevention of the prevention of offenses in the

tax sphere;

− a method of improving tax administration.

The Plenum of the Supreme Court classified tax

offenses as socially dangerous offenses, therefore,

improving the organization and methodology of tax

examination is a socially significant process and

should be carried out with due responsibility and care.

Basnukaev, M. and Madaeva, R.

Tax Expertise in the Tax Administration System.

DOI: 10.5220/0011555800003524

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Tax expertise in the structure of the tax system

should be attributed to tax control, which,

accordingly, is the basis for managing the tax system.

"Tax control as an element of taxation management is

a necessary condition for the effectiveness of the tax

system, while providing feedback from taxpayers

with government bodies that are endowed with

special rights and powers on taxation issues"

(Skopintseva, 2016).

Tax expertise is one of the youngest, so far its

recognition as an independent type of expertise has

not been fully formed. There is not enough theoretical

work in this area; generally accepted theoretical

approaches have not developed. In practice, the

classifications established by the regulations of the

Ministry of Internal Affairs of the Russian Federation

and the Ministry of Justice of the Russian Federation

are used.

Thus, there is a contradiction between various

normative acts regarding the classification of tax

examinations. It seems that tax expertise should be

singled out as a separate type of expertise, as

requiring special knowledge in the field of tax legal

relations, as well as having an independent subject,

object. The subject of tax examinations can be

interpreted in a broad and narrow sense:

− in a broad sense - this is a study of the

fulfillment of the obligation of taxpayers to pay

legally established taxes and fees;

− in a narrow sense - this is the identification and

study of the facts of unreliable reflection of

business transactions in tax, accounting,

reporting documents, evasion of paying various

levels of taxes, fees, and other payments to the

budgets that have become the subject of legal

proceedings and regarding which the expert

conducts research on the basis of the set before

him questions by established persons

(investigator, court, etc.).

More often, the authors define the subject of

expertise in a narrow sense, so V.A. Timchenko

believes that the subject of a forensic tax examination

is “factual data (circumstances of the case being

investigated or being considered in court) on the size

of the taxable base, on the amount of taxes to be

calculated and paid to the budget for a certain period,

on taxes actually paid to the budget and some others”

(Timchenko, 2018).

V.V. interprets the subject of tax expertise in the

same narrow sense. Golikov as "factual data

(circumstances of the case), investigated and

established in legal proceedings using special

knowledge in the field of accounting and tax

legislation, based on the study of the patterns of

subjects and elements of taxation, the amounts of

calculated, paid and payable taxes (fees) and their

compliance correctness and completeness of the

calculation to the requirements of the tax legislation”

(Golikova, 2011). Note that V.V. Golikova rightly

notes the close connection between tax expertise and

accounting. Currently, these two types of accounting

are organically linked, with the expansion of

digitalization, the development of tax legislation, etc.

tax accounting is separated from accounting, their

relationship is weakening,

The professional training of an expert, his

education, practical skills and other competence

characteristics are interconnected with the

specification of the subject of tax expertise.

Consolidation of tax expertise as a separate type of

economic expertise will allow training specialists to

be more focused on the existing needs of practice,

satisfying to a greater extent the demands of law

enforcement and judicial authorities.

This list in the Tax Code of the Russian

Federation is closed. In the scientific and special

literature, the vast majority of cases are considered

when tax examinations are initiated in relation to

taxpayers. Payers of fees and insurance premiums

close to this category, tax agents do not constitute an

alternative category or a category that differs

significantly from taxpayers. Practice shows that in

relation to officials of tax and customs authorities,

examinations are also initiated, which are tax ones. It

seems appropriate to single out groups of entities

regulated by the legislation on taxes and fees, in

respect of which tax examinations can be initiated:

− taxpayers, payers of fees and insurance

premiums, tax agents;

− officials of tax and customs authorities.

Consideration of examinations expands the list of

objects that can be singled out in a separate group, as

having a specific subject composition. The

development of the methodology of tax expertise

makes it possible to expand the list of documents and

other materials that may become objects of expertise,

as such objects in relation to taxpayers, payers of fees

and insurance premiums, tax agents are:

− primary tax and accounting documents;

− supporting documents of the taxpayer (for

example, cashier's checks, etc. in advance

reports);

− copies of primary and supporting documents of

the counterparty of the taxpayer;

− registers of accounting and tax accounting;

− other documents closely related to operations

for the calculation and payment of taxes and

fees;

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− technical, production documentation (for

example, documentation that allows you to

determine performance indicators, production

capacity);

− business contracts;

− tax (tax declarations) and accounting

(financial) statements, production reports;

− documents and records of managerial or

informal accounting;

− protocols of inspection of premises, territories

and things and documents located there

belonging to a legal entity or an individual

entrepreneur;

− materials of cameral and field tax audits;

− documents (for example, certificates) on

additional tax control measures taken.

The list of documents, other materials that may

become objects of tax expertise in relation to officials

of tax and customs authorities are:

− objects of expertise, listed as such, for

taxpayers, payers of fees and insurance

premiums, tax agents;

− acts of surveys of taxpayers, payers of fees and

insurance premiums, tax agents, contractors;

− official regulations for employees of customs

and tax authorities;

− personnel documents, etc.

The objects of tax examinations are not all

documents containing information on taxes and fees,

but those of them that contain facts of economic life

that have become the objects of legal proceedings and

in respect of which the expert gives an opinion on the

basis of questions put before him for resolution by

established persons. Established persons are persons

who have the right to appoint examinations, such as

investigators, interrogators, prosecutors, judges.

In the context of the increasing isolation of

documents reflecting tax relations from other

relations characterizing the activities of an

organization, other taxpayers (individual

entrepreneurs, self-employed persons, etc.), there are

more and more arguments for recognizing tax

expertise as a separate type of expertise.

We highlight the features of judicial tax

examination:

− basic normative acts, as sources of information

for tax examination are acts of legislation on

taxes and fees; regulations governing related

disciplines accounting, controlling, financial

management, auditing, civil, labor law,

economic analysis, etc. play a significant, but

not primary role in tax examinations;

− the subject of judicial tax examination can be

defined in a broad and narrow sense. In a broad

sense, this is a study of the fulfillment of the

obligation of taxpayers to pay legally

established taxes and fees; in a narrow sense -

this is the identification and study of unreliable

reflection of the facts of economic life in tax,

accounting, reporting documents, evasion of

paying various levels of taxes, fees, and other

payments to the budgets, violation by officials

of customs and tax authorities of official duties

that have become the object of legal

proceedings;

− the object of tax expertise are documents

containing information on taxes and fees that

have become the objects of legal proceedings

and in respect of which the expert gives an

opinion on the basis of questions put before

him for resolution by identified persons.

The quality of tax examinations depends to a

certain extent on the persons who appoint the

examination. A feature of not only tax, but also other

examinations is the fact that the appointment and

evaluation of the expert's opinion is carried out by law

enforcement agencies, courts, and research is allowed

only by independent experts.

Consequently, the quality of examinations is

influenced by the selection of documents provided to

the expert for the study, their completeness and

quality, as well as the formulation of questions, the

accuracy of wording, etc. In accordance with the law,

the expert does not have the right to independently

select or collect documents for examination.

The procedural legislation makes it possible to

involve specialists at different stages of the process

(pre-trial and in court). It is specialists who can

supplement the capabilities of investigators and other

persons in the selection of documents for examination

and the formulation of questions.

The expert conducts a tax examination in

accordance with the requirements of procedural law,

the norms of the law "On State Forensic Activities in

the Russian Federation", guidelines, etc (No. 73-FZ,

2001). These questions are often raised by various

authors, and the topic of morality is rarely revealed.

One of the first to consider morality in the

administration of justice was A.F. Koni, who pointed

out the need to put "moral requirements and tasks in

the first place" in the administration of justice. He

wrote: "along with the official duty of a judicial

figure, his moral duty grows" (Koni, 1967). It seems

that in the analysis of moral principles in legal

proceedings, the expert can be considered the subject

of such principles. Modern experts must adhere to

Tax Expertise in the Tax Administration System

121

ethical principles in the production of economic

expertise,

The requirements for the examination and the

expert opinion are quite often considered by domestic

authors. The insufficiently considered issues include

the use of digital technologies and tools in the work

of an expert and documenting the study and its

results. The expansion of the scale of digitalization is

having an increasing impact on all kinds of areas of

human activity, including expert activity, digital

technologies should become an impetus for

expanding the range of expertise tools and

formalizing its results. The widespread introduction

of information technologies in modern life has

created the prerequisites for the formation of new

approaches to control using information systems, the

legislator has set tasks, the solution of which will

bring not only control, but also the entire business

environment to building an information economy.

Work on informatization is actively carried out by the

tax authorities, for example, an information resource

"Risks" has been created, containing background

information for decision-making by officials of the

tax authorities "on the advisability of tax control

measures in relation to specific legal entities" (N ED-

4-2, 2018). It seems that similar resources should be

created among professional experts conducting

research on tax expertise.

The direction of improving forensic tax expertise

as a method of tax control is the use of digital

technologies in conducting research and presenting

the results of such research.

Strengthening the evidentiary characteristics of

the expert's opinion, presented to the persons who

appointed the examination, may be the visualization

of the expert's conclusions by infographics. The use

of infographics by experts will improve the

perception and understanding of the expert's

conclusions through a better understanding of

complex economic information. The formation of an

integral conclusion in combination with animated or

interactive information from experts will enhance the

interaction of all interested parties in the process, first

of all, experts and persons for whom this conclusion

is intended: investigators, judges, etc.

Note that the use of infographics is proposed to be

implemented in the audit and is disclosed by such

authors as E.A. Rybalka, L.N. Kuznetsov, who

believe that the use of infographics should be fixed at

the regulatory level (Rybalka, 2018).

Improving the organization and methods of

conducting tax expertise should be carried out

continuously. An important area of such

improvement should be the exchange of experience

using benchmarking tools. In its most general terms,

“benchmarking is best practice, any practice that

works best” (Kuznetsova, 2013). Each expert has a

unique experience that should be shared with other

experts. There is no practice of using benchmarking

in economic expertise, its use will help to increase the

efficiency of expertise.

3 CONCLUSIONS

Thus, it is expedient to separate tax expertise into a

separate classification type, since it has a number of

specific features, has its own subject and objects.

When conducting a tax examination, an expert

must comply with moral principles, the study and

consideration of which should be carried out in the

educational process.

The direction of increasing the efficiency of tax

examinations is the use of digital technologies in

conducting research and presenting the results of such

a study. Improving the quality of the expert's

conclusion (its probative value) can be the

visualization of the expert's conclusions based on

infographics.

REFERENCES

Federal Law "On State Forensic Activities in the Russian

Federation" dated May 31, 2001 No. 73-FZ.

Skopintseva, A. V., 2016. Tax control as an element of tax

management. Young scientist. 17. p. 471.

Timchenko, V. A., 2018. Judicial tax examination. N.

Novgorod, Nizhny Novgorod University, p. 8.

Golikova, V. V., 2011. Subject, tasks and objects of

forensic tax examination. Laws of Russia: experience,

analysis, practice. 6. p. 73.

Koni, A. F., 1967. Moral principles in the criminal process.

4. pp. 50-51.

Letter of the Federal Tax Service dated September 7, 2018

N ED-4-2 / 17467@ About the information resource

"Risks". SPS "ConsultantPlus".

Rybalka, E. A., Kuznetsova, L. N., 2018. Ensuring the

economic security of the state in the context of

reforming the audit. Legal issues of ensuring economic

security in the context of informatization of society: a

collection of scientific articles of the All-Russian

Scientific and Practical Conference. Rostov-on-Don.

Rostov-n/D. pp. 454-455.

Kuznetsova, L. N., 2013. Analysis of the state of

management accounting in organizations and the

prospects for its development. Management

Accounting. 1. p. 29.

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