Digitalisation of the Tax Risk Management System in the Federal Republic of Germany and the Russian Federation

Abstract

With the advent of the new decade, the possibility of applying digital tools in certain fields of law is increasingly being explored in a range of legal publications. Particular attention is paid to those fields of law, which are based on an imperative method of legal regulating the relationship between citizens and the State, since in this context the implementation of digital tools can tip the scales in favour of the State and greatly prejudice essential rights and interests of citizens. This issue is particularly acute in the field of tax law, where infringement of taxpayers’ rights and interests may in the short- and medium-term lead to liquidity problems for them and to decrease foreign investments in the country economy in the long-term. To date, the risk of such kind of a threat is most likely to arise in the area of tax risk management, which is the most “digitalised” area of tax law. This article provides a comparative legal analysis of the digitalisation process of tax risk management systems of the Federal Republic of Germany and the Russian Federation. The aim of this study is to identify both common trends and fundamental differences between two systems. In order to achieve this aim, the article first describes the tools and technologies most used during the digitalisation process, followed by a comprehensive study of the structure of the automated tax risk management systems of the Federal Republic of Germany and the Russian Federation. In addition, some legally problematic elements of both systems are critically assessed.