Management of Taxation at a Modern Company: Tax Optimization Versus Tax Load

Abstract

Purpose This work is aimed at studying the essence of taxation management at a modern company, consideration (by the example of modern Russia) of accessible means of tax optimization, determination of related problems, and development of the optimization algorithm of conduct of taxation management at a modern company. Methodology The research is based on the existing methodology of evaluation of effectiveness of tax optimization at a company. Results In the course of complex analysis of accessible means of taxation optimization at a modern company it is determined that tax optimization is related to emergence of undesired consequences (problems) for a company, most of which have non-tax (production or marketing) nature. Neglecting these consequences distorts the expected results of tax optimization and reduces effectiveness of taxation management at a modern company. Recommendation The proprietary optimization algorithm of taxation management at a modern company allows considering not only advantages from tax optimization but also expenditures for its conduct and related risks (problems) for a company, due to which it ensures receipt of precise and authentic estimate results and guarantees high effectiveness of taxation management at a modern company. Usage of the offered optimization algorithm of taxation management at a modern company allows making the practice of tax optimization widely accessible (due to simple and clear calculations) and ensuring well-balanced management of tax and finance, production, and marketing components of entrepreneurial activities, thus leading to growth of global competitiveness of modern Russian companies.