Perspectives for modernization of Russian tax system estimated by OECD experts

The Federal Tax Service of Russia

Published: 17.06.2011 12:10

Today a 3-day seminar “Tax administration of large business taxpayers”, held by the expert team of Organization for Economic Cooperation and Development (OECD) at the Federal Tax Service of Russia, is finished. Among the participants were FTS representatives, delegates from CIS tax administrations, as well as from the USA, Canada, Germany and Denmark. In the follow-up the OECD experts shared some impressions with NALOG.RU correspondent.

According to compliance program manager of Canadian Revenue Agency Mr. Philip Diguer, despite the fact that the program for compliance management of large business was introduced only a decade ago, he was amazed by the enthusiasm and aspiration for further development, demonstrated by FTS representatives. In his opinion, Russian tax system has recently made a breakthrough and, as unanimously mentioned by the OECD team, FTS has the potential for further upgrade of services provided. In particular, adopting new legislation on transfer pricing could make a considerable contribution and could take Russian tax system to a new higher level. Finally, Mr. Diguer on behalf of the OECD pledged willingness to accelerate such process and provide assistance in legislation adjustment, if required.

Moreover, such efforts will expedite Russia’s joining the OECD. As explained by Mr. Dietmar Elbert, federal tax auditor at the German Federal Tax Central Office, in recent years the number of OECD member states considerably increased and the interaction among countries becomes more efficient, as there is opportunity for experience exchange and elaborate joint solutions on key issues.
Currently, mentioned Tax Attaché of IRS in France Mr. Aziz Benbrahim, tax authorities in majority of countries face similar challenge – to create an open dialogue with taxpayers. As an example, Mr. Benbrahim referred to IRS policy, which focus on making relationship between taxpayers and tax administration more transparent.
“Being open for taxpayers, advice them on their actions, render high-level services and expect relevant feedback appears the principal goal for tax system of any country”, added Mr. Benbrahim.

He also gave a high estimate to presentation made by Head of division of analysis, audit planning and monitoring of large business taxpayers Mr. Konstantin Novoselov, who determined rapprochement of taxpayers and FTS as a priority task.

Summing up OECD representatives stated the necessity to establish a closer relationship with Russia and expressed hope to organize seminars and meetings on a regular basis.