The Federal Tax Service of Russia
Published: 15.01.2021 14:12
In his opening speech at the Digital Transformation Session of the 13th Plenary Meeting of the OECD Forum on Tax Administration, Bob Hamilton, Commissioner of Canadian Tax Agency, noted that provision of economic support measures, as well as ensuring business continuity during the pandemic significantly changed the role of tax administrations. Representatives of 53 tax administrations, international organizations and business discussed how their work has changed in the context of COVID-19, as well as the expansion of mutual agreement procedures and the International Compliance Assurance Program (ICAP), current issues of tax control in the context of digitalization of the economy, modification of international tax rules (Pillar 1 and Pillar 2), etc. The event took place virtually.
Daniil Egorov, Commissioner of the Federal Tax Service of Russia, made a keynote speech. He presented a draft of Tax Administration 3.0 report, which sets out a vision for changes of tax functions and services over a 10-year period, and the Community on Digital Transformation outcomes. The future trends of tax administration was illustrated by the experience of Federal Tax Service of Russia. One of the main trends here is the digitalization of VAT control up to the sale of goods to end customers. It allowed reducing the tax gap in 19 times and ensuring budget revenues despite of the pandemic. “This became a prerequisite for the establishment of a unified electronic document flow system, which will automatically calculate tax due to the real-time access to transactional data. This will eliminate the burden of providing tax reporting and calculating taxes for businesses”, said Daniil Egorov.
A draft of digital "road map" of the Forum, which defines future directions of international cooperation, was also presented at the Plenary. Future plans include exploring the ways of international standardization of e-invoicing and digital identity systems as well as implementation of compliance-by design systems of PAYE for online platforms.
Daniil Egorov emphasized the importance and necessity of international exchange of best digital transformation practices to ensure economic growth. Thus, within the framework of technological assistance, FTS of Russia supports foreign tax administrations in implementing of Russian VAT automatic control system, which helps to modernize their information systems and business processes.
Pascal Saint-Amans, Director of the OECD Center for Tax Policy and Administration, Georgios Pitsilis, President of the Intra-European Organization of Tax Administrations, as well as representatives of tax administrations from 19 countries, including Canada, USA, Great Britain, Australia, Ireland, Chile, Norway, Singapore and France also made presentations at the Plenary Session. For the detailed information of the event please visit the website.
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