The essence and objectives of taxes are primarily expressed in the functions that they perform. There are a lot of the latter. We will characterize each of them, dwelling in detail on the control function of taxes and the Federal Tax Service. We give its description, examples.
What is considered a tax?
Next, we will analyze the control function of tax authorities and taxes. First, consider the characterization of the term.
A tax is an individual gratuitous mandatory payment levied compulsorily by special state bodies from individuals and various organizations. The purpose of this collection is to ensure financial activity of both the state in general and its municipal entities.
At the same time, taxes are distinguished from all kinds of fees and duties, the collection of which is not free, but is a condition for the payers to perform certain actions, provide them with public services, complete any kind of documentation, etc.
Tax collection in the Russian Federation is regulated by the Tax Code. All of them are divided into federal, local and regional. The list of specific taxes in each group is approved by the Tax Code.
The totality of all established taxes, forms, methods, principles of their collection, establishment, cancellation, control and change is the state tax system.
It is important to highlight such tax elements as:
- Taxpayers.
- The tax base.
- Objects of taxation.
- Tax exemptions.
- Taxation units.
- Calculation Procedures.
- 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, in relation to taxes, several classifications have been introduced:
- Direct and indirect.
- Chord and income.
- Regressive, progressive and proportional.
Range of functions
The control function of taxes is only one of the components. In total, there are several of them:
- Fiscal.
- Regulatory.
- Social.
- The control function of taxes.
Now we will announce the characteristics of the categories from this list.
Control
Let us analyze the essence of the tax control function. This function is intended to create prerequisites for observing the proportions of costs in the process of formation and further distribution of income of various economic entities. It is thanks to her that she is able to clearly assess the effectiveness of a particular 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 track both the timeliness and the completeness of receipt of funds in the state budget. When collecting, it also helps to track, 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.
An example of the control function of taxes: the amount of money received from individuals and organizations is evaluated. Then - a quantitative comparison of income indicators with government needs for financial resources. Subsequently, based on these data, the effectiveness of the created tax system is assessed, and control over financial flows and various types of citizens' activities is ensured. This function also allows you 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 consists of, we will not begin to identify it with tax control. It is carried out by both tax and customs authorities, certain units of extrabudgetary funds. The task of all these departments is to monitor compliance with tax laws by conducting various forms of tax audits.
Social
We examined what the tax control function is. Social is somewhat detached from it, but at the same time closely related to the regulatory and fiscal. It is expressed through the collection of property and income taxes. In a larger amount, such fees are paid by a secured part of the population so that this money in the form of social benefits goes to poor citizens.
The specific mechanisms for the implementation of this social function are insurance payments. As for specifically the tax on personal income, then there are the following lists:
- Income that is not taxable.
- Tax deductions standard.
- Professional tax deductions.
In addition, a list of incomes is introduced for which increased tax rates apply.
Fiscal
The fiscal function can be said to flow from the very nature of the tax. It is characteristic of states of different systems and different eras. It is during its implementation that government resources are formed and the necessary material resources are created to ensure the existence of the state.
The main task in the implementation of this function into life is to ensure a stable revenue item of budgets of all levels. This is the broadest concept of all the functions identified in this article. Here it is understood not only ensuring the participation of citizens in the formation of the budget, from which nationwide 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 public spending becomes impossible to reduce, 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 - they contribute to the accumulation of public debt.
Its maintenance in the future at the expense of budget funds often leads to an increase in the tax burden on the population. This causes dissatisfaction of taxpayers, leads to a decline in production. The consequence is the taking of new government loans. As a result, a financial pyramid is built, not infinite in nature. At a certain moment, it collapses, turning into a collapse both for the country's budget and for the accumulation of citizens. There are not so few examples in history.
Regulatory
No less than the control function of taxes, it is important and regulatory. 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.
In temporary terms, 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 income level of various categories of the population. This is embodied through a system of tax fees, benefits and payments.
The purpose of applying the benefits is to reduce tax obligations of specific groups of citizens. The following stand out here:
- Exemptions. The privilege aimed at removing specific types of objects from taxation.
- Discounts. These are benefits aimed at reducing the tax base.
- Tax credit. Benefit aimed at reducing salaries or tax rates.
As for tax credits, they can take the following forms:
- Lower tax rates.
- Reduction in salaries.
- Tax holidays - a full exemption from taxes for a specific period of time.
- Refund of previously paid tax - full or partial.
- Deferral or installment plan of tax payment. This includes investment tax loans.
- Offsets of previously paid taxes.
- Replacing the payment of tax (or payment of any part thereof) 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 the resources spent (mostly natural), for their greater involvement in the future in production, and to accelerate economic growth.
Regulatory taxes typically include the following:
- The tax on the reproduction of mineral resources.
- Subsoil use tax.
- Tax on the right to use objects of the animal world, aquatic biological resources.
- Water tax.
- Forest tax.
- Environmental tax.
- Road tax.
- Property tax.
- Transport tax.
- Land tax.
It is important to note that the regulatory tax function manifests itself not only in the production sphere. It also acts through the solvency of individuals.
Tax Subfunctions
The control function of taxes is to evaluate the effectiveness of tax channels and further adjust the relevant legislation on this basis.
But besides this and other functions, subfunctions of taxes stand out. They stem from regulatory. There are three of them:
- Reproduction.
- Stimulating.
- Discouraging.
We will analyze these subcategories in detail.
Stimulating subfunction
The task of this tax subfunction 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 for small enterprises, associations of disabled people, entrepreneurs engaged in agricultural sphere, organizations involved in charity, and so on.
Discouraging 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 subfunction, the state, on the contrary, inhibits some economic processes.
Reproduction subfunction
The main task of such a tax subfunction is to accumulate funds for the restoration of national resources.
Examples here are the deductions of contributions for the reproduction of the mineral resource base, the restoration of the country's water resources, and so on.
Incentive function
In some systems and classifications, in addition to the control, social (redistributive), regulatory and fiscal ones, the incentive function is sometimes distinguished. It expresses the recognition by the state of the merits of certain categories of the population. In Russia, these are, for example, participants in the Second World War, heroes of Russia, the Soviet Union, etc.
At its core, this function is the adaptation of the tax system to the social policy of the state. So, 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 tuition for children, etc.
Functions of the tax authorities
Above, we examined the control and other forms of tax functions. They are different in relation to tax authorities. For example, the control functions of the Federal Tax Service of the Russian Federation will be somewhat different than the tax itself.
Consider their spectrum in relation to tax authorities:
- Fiscal. Ensuring the crediting of fees paid by citizens and organizations 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 legislation, as well as their timely suppression. For example, the introduction of various penalties for delaying tax payments, violations in reporting documents, etc.
- Consulting (or informational). The tax authorities have a direct duty to inform payers about the rules for paying taxes, norms and changes to the Tax Code.
- The control function of the tax authorities. Monitoring compliance with the Tax Code, taxpayer accounting.
Additional tasks of the Federal Tax Service
We list the additional control functions of the tax authorities:
- Control over the accuracy of calculation, completeness and timeliness of making tax payments to the state treasury.
- Control over the production and subsequent circulation of ethyl alcohol, alcohol and tobacco products.
- Monitoring compliance with currency laws within the competence of the Federal Tax Service.
- Control over informing taxpayers.
The control function of taxes allows the state to monitor the volume and completeness of the receipt of these payments, to analyze the quality of tax channels. And on the basis of these data to adjust the tax code, budget policy. As for the control functions of the Federal Tax Service, they are different from the functions of taxes themselves.