Abstract
The purpose of this article is assessment and comparison of the risk component in Italian and Russian tax systems, taking into account the influence of tax revenue structure, certain tax revenue irregularities and interrelation between tax revenues as such. For that reason, we described tax yield rate in both the countries at large and in terms of their basic taxes. On the basis of standard deviation indicator we assessed each tax risk within the framework of the taxation system of each country. Using H. Markowitz’s portfolio-based approach we analyzed the risk level of the tax system at large, relating to both the Russian Federation and Italy. In conclusion we inferred the reasons for the assessment given. The research was done on the basis of the official data provided by the state fiscal bodies and statistical authorities of the Russian Federation and Italy. DOI: 10.5901/mjss.2016.v7n1p45
Highlights
Tax systems assessment is usually carried out on the basis of the indicator of taxation yield that is determined as the relation of tax revenue to the domestic product of the area
There are tax revenues calculated upon the data of the Russian federation and Italy in Tables 1 and 2 respectively
Tax return in Russia is quite evenly distributed between taxes, while in Italy two thirds of return come from two taxes only: personal income tax and value added tax, their return is considerably higher than that in Russia
Summary
Tax systems assessment is usually carried out on the basis of the indicator of taxation yield that is determined as the relation of tax revenue to the domestic product of the area. Such an assessment does not always fully describe the current state of the tax system of a particular country. The tax yield in the countries having a different level of economic development can be similar It is true of Italy and the Russian Federation, in particular, where the level of tax yield is approximately the same, though both the structure and dynamics of tax revenue are considerably different. Tax revenue volatility is of primary importance, as well as its responsiveness to the changes of the macroeconomic situation and elasticity in terms of the real economy parameters
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