Tax Crisis and Crisis Management in the Taxation System of Modern Russia

Abstract

Purpose The purpose of the chapter is to determine the reasons of emergence of tax crisis in modern Russia and to develop recommendations for optimization of crisis management in the taxation system. Methodology The authors conduct complex study of peculiarities of formation and development of the modern Russia’s tax system with application of the methodology of systemic, problem, and logical analysis, which allows determining the essence and causal connections of emergence of its current crisis and determining the perspectives of overcoming this crisis. Results The authors come to the conclusion that the current tax crisis in modern Russia appeared as a result of non-optimal crisis management in the taxation system. The crisis was formed during the whole period of formation of the Russian tax system (due to absence of preparations for a crisis) and came into effect under the influence of unfavorable internal (aggravation of demographic situation) and external (global economic recession) factors. The implemented anti-crisis measures accelerated the tax crisis in Russia, as they had not been approved by taxpayers. This closed the circle of deepening of the tax crisis; in order to overcome it, it is necessary to change the principles of crisis management in the modern Russia’s taxation system. Recommendations These principles should include mutual responsibility of the state and taxpayers and openness and predictability of state tax policy. It is recommended to implement the developed authors’ algorithm of crisis management in the modern Russia’s taxation system, which reflects the logic of overcoming the current crisis in the Russian tax system and preventing emergence of new crises in the future.