Model of financial mechanism of stimulation of the reproduction process on the example of national projects implementation

Abstract

The article presents the study of the problem of stimulating the Russia federal budget financing. The authors study innovation in taxation legislation including deoffshorization, the stages of its implementation, structure, current state and the results achieved. The topicality of studying this government approved activity is justified by significant financial outflow abroad. The national measures of fighting offshores are adduced in the article. Russia has joined international conventions on cooperation in taxation and fight against tax evasion. Moreover, in 2018 the country implemented the OECD system for mutual data exchange on foreign accounts, property and assets, that is, the standard of automated exchange of financial information called the Common Reporting Standard. The analysis conducted by the authors proves the hypothesis about shifting priorities of private companies towards huge dividend payments instead of investments in development of their own business and the whole industry. Big private companies being the core of economy are interested in preserving offshore locations with preferential taxation terms. Major threats the government faced were connected with loss of control over strategic assets in fuel and energy complex, metallurgy, machine engineering, defense production and, consequently, with failure to administer the economy. In this situation, the government faces a complicated task of controlling the use of offshore locations and present alternative and perspective options for private business. The initiated deoffshorization should become the starting point for the development of different financial instruments and mechanisms on stimulating investment in federal budget. The authors study the probable tool aimed at maintaining the process of additional financing of the state budget. Modernization of reporting and introduction of additional progressive allowances to the existing taxation can become such an instrument.