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The aims and scope of revamping a tax system


On 2 June 2017, AEB CEO Frank Schauff made a report on a panel session “The aims and scope of revamping a tax system” during St. Petersburg Economic Forum.

Among other participants of the session were: Jörg Gasser, State Secretary for International Financial Matters, Federal Department of Finance of the Swiss Confederation; Tatyana Golikova, Chairwoman, Accounts Chamber of the Russian Federation; Vladimir Mau, Rector, Russian Presidential Academy of National Economy and Public Administration (RANEPA); Anton Siluanov, Finance Minister of the Russian Federation; Yuriy Gorlin, Deputy Director of the Institute of Social and Policy Sciences, Russian Presidential Academy of National Economy and Public Administration (RANEPA); Dmitry Satin, Deputy Commissioner, Federal Tax Service (FTS). Andrey Makarov, Chairman of the Committee on Budget and Taxes, The State Duma of the Federal Assembly of the Russian Federation moderated the session.

In his speech Frank Schauff paid attention to tax issues, especially worrisome foreign companies operating in Russia. Among them are: Tax maneuver 22/22 ( 22% social taxes and 22% VAT); Unified system of mandatory payments; Tax security and tax comfort; Increasing the effectiveness of tax benefits; Definiteness, distinctness of the rules and predictability of changes.

"There are more than 50 mandatory payments in Russia, surprisingly similar to taxes and fees. These payments are not provided for by the Tax Code and are called fees, deductions, fees and so on. For many industries, such payments become very noticeable. We believe that we need to get rid of the parallel tax system. To do this, all mandatory payments must be subordinated to the rules of the Tax Code. Creating a separate code is a non-systemic decision”, said Frank Schauff