On the Role of Tax Planning in Small Business Entities

Abstract

The article considers: the role of small business in the economy of states, theoretical and practical aspects of tax planning, tax burden management based on a critical analytical analysis of publications and the role of methodologies based on the analysis of indicators with which the amount of tax payments is correlated. Globalization and the growing challenges of the information and digital economy actualize the issues of: modernization of the Russian tax system in order to reduce the tax burden on business; simplification of the current system, increasing the importance of tax planning for all commercial organizations and small businesses as the most significant. The analysis of practical situations and financial indicators of small business enterprises gives grounds to assert that the management of the tax burden at small businesses is not carried out effectively enough, and with the use of illegal and labor-intensive methods. In addition, it is often associated with high risks for the "viability" of businesses and owners, since the optimization (minimization) of taxation is carried out using illegal methods and turns into tax evasion. In the course of the study, the author's methodology for calculating the smoothed integral indicator based on the use of tax burden coefficients for revenue, gross profit and net profit was tested. The results can be used by the management of commercial organizations to manage the tax burden, as well as by government agencies to optimize tax policy.