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Key Propositions of Evaluating Tax Benefits

Author: Mariya A. Troyanskaya, Cand. Sc. (Econ.), Associate Prof. of Finance Dept.

Abstract: The article presents the monitoring of current legislation in the Russian Federation against the issues of assessment of efficiency and results of tax incentives, which showed that the mechanism of their evaluation is of a general nature and does not cover the full list of payers for whom local laws provide tax benefits. It is proved that the process of using regional tax benefits is becoming more organized and ordered. The paper pays attention to the positions of Russian scientists and economists on improvement of methodologies for assessing the efficiency and results of the privileges. It is stated that the creation of a quality methodology to assess the efficiency of provided tax benefits based on separate accounting of granted tax privileges by category of taxpayers will allow evaluating the efficiency of each form of tax benefit and, consequently, reduce the list of inefficient benefits.

Keywords: evaluation; efficiency; tax expenditures; benefits; tax credits.