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On Optimization of Tax Administration Costs

Author:

Andrey L. Anisimov and Sergey V. Shirpuzhev

Abstract:

The article considers main methodological and practical problems of development of an eco‑ nomic-mathematical model for optimizing costs of tax administration. It graphically represents basic propositions of the concept of cost optimization and a list of auxiliary models needed for designing a conceptual economic-mathematical model of cost optimization. Allowing for the economic essence of the term “optimization” as a factor behind profit increase, a method for overcoming crisis, a means of improving investments’ efficiency as well as its mathematical definition as a process of finding function’s extreme value or choosing the best option from possible multiplicity of them, a process of working out the optimal solution or a process of putting a system into the optimal condition, the au‑ thors regard optimization of tax administration costs as achievement of such amount of costs, which will enable the maximum difference between tax revenues to budget and costs of getting them, i.e. the maximum “net profit”.

Keywords: cost management; cost optimization; taxation mechanism; tax administration; tax revenues.

For citation:

Anisimov A. L., Shirpuzhev S. V. Ob optimizatsii zatrat na vzimanie nalogov i sborov [On Optimization of Tax Administration Costs]. Izvestiya Uralskogo gosudarstvennogo ekonomicheskogo universiteta – Journal of the Ural State University of Economics, 2016, no. 5 (67), pp.39–45.