Tax control is carried out through the procedural and procedural activities of the tax authorities, the basis of which is formed by specific, fully substantiated techniques, methods and tools that are used in the implementation of control functions. In our article, we will focus on the forms and methods of tax control. Consider the classification of the category and other equally important aspects on the topic.
The main forms of tax control
Under the form of control in the field of taxes and fees should be understood the methodology of a particular expression and the subsequent implementation of control actions. The list of forms and methods of tax control is formed on the basis of the rights of tax services established by the Tax Code. Among them, it is important to note the following:
- Require documentation from the tax agent or taxpayer in accordance with the forms established by state bodies and local government structures, which serves as the basis for the calculation and subsequent payment (in other words, withholding and transferring to the state budget) of tax payments, as well as explanations and papers that confirm literacy calculation and timeliness of operations to withhold and transfer taxes and fees budget.
- To seize the documentation when a tax agent or taxpayer conducts such a form of tax control as a tax audit, which indicates that a tax offense has been committed, if there is sufficient reason to believe that this documentation will be destroyed, hidden, replaced or changed.
- On the basis of a written written notification, call taxpayers, levies or tax intermediaries to the tax authorities to provide explanations on the basis of payment (withholding and subsequent transfer) of tax amounts by them. The reason may be a tax audit, a form of tax control. Other situations relevant to the implementation by taxpayers of legislation regarding taxes and fees are also relevant.
- Inspect (inspect) any tax, used by the taxpayer for profit or related to the maintenance of taxable objects (regardless of their location) trading, warehouse, industrial and other territories and premises, as well as take an inventory of property belonging to the taxpayer.
- To control the compliance of significant expenses of citizens with their income.
- To attract experts, translators and other specialists to implement the currently known forms of tax control.
- Call as witnesses of persons who may know certain circumstances that are relevant to the implementation of tax control.
- Form tax posts in the order established by the Tax Code of the Russian Federation.
So, we examined the forms of tax control that exist today. It is advisable to proceed to the classification of the category.
Varieties of control over implementation time
Forms and types of tax control are the most important aspects of this issue. So, according to the time it is customary to distinguish the following types of control:
- preliminary;
- operational (current);
- subsequent.
A preliminary form of tax control takes place before the reporting period in accordance with a specific type of tax or until the moment is resolved regarding the provision to the taxpayer of certain tax benefits, changes in the timing of payment of tax amounts.
Current control is carried out during the reporting period.It is worth noting that its feature is the implementation in the process of conducting financial or business operations, in other words, with the daily work of taxpayers. This form of tax control is based primarily on tax and accounting, primary documentation, inventory, the procedure for conducting cash transactions, which allows both control bodies and controlled entities to respond as quickly as possible to changes in financial activities, in a certain way to prevent violations of tax legislation and thereby prevent the loss of the financial plan of the municipal or state treasury.
Subsequent control is implemented at the end of the reporting period through analysis and audit of financial and accounting documents. The main goal of the subsequent control is nothing more than an assessment of the completeness and timeliness of the fulfillment of the tax obligation by fiscally obligated persons.
Subject classification
Consider the classification of categories depending on the subject. So, today it is customary to distinguish the following types of tax control:
- Control of tax services.
- Customs control.
- Control of the internal affairs bodies.
- Control of investigative bodies.
Location Classification
At the venue, the following types of control are distinguished:
- Exit It is carried out directly at the location of the taxpayer.
- Cameral. It is implemented at the location of the tax authority.
Control Methods in Financial Law
Considering the types, forms and methods of tax control financially, it is advisable to identify the main methods that are currently used by specialists. It is important to note the following points:
- Observation
- Tax audit.
- Survey
- Analysis.
- Audit.
We will analyze each of the presented methods (forms) of tax control of the Russian Federation separately.
Observation
Under the supervision it is necessary to understand the visual familiarization with the controlled object. Using this technique, it is possible to identify areas of financial work of the organization, organizational management structure, as well as formulate preliminary conclusions regarding its profitability, income and expenses system. It should be borne in mind that during observation it is impossible to accurately determine the state of the object of verification in terms of finance. Nevertheless, in most cases, the conclusions drawn are considered reliable, which can be confirmed by the results of a direct tax audit. Surveillance as a method of financial control is also used in the implementation of the audit, audit or inspection. This technique is used, inter alia, as an option for monitoring the state of the organization financially when implementing bankruptcy proceedings.
Tax audit
Unlike the previous method, verification is carried out directly on the controlled object. Here, the compliance of accounting information with material values that are available is checked. At the same time, during a tax audit, violations in financial discipline are identified and measures to eliminate them are determined. The event is considered to be a single action of the control plan, in other words, it is carried out once and involves the study and analysis of the state of affairs of the company in a particular area of work.
It should be borne in mind that issues of the procedure and organization of tax audits are enshrined in the Tax and Budget Codes of the Russian Federation, as well as the Federal Law “On Accounting”. You should know that the results of the event are made out by means of a special act, which the head of the organization studies without fail. Based on the results of the audit, various measures of influence of an administrative, material, disciplinary and other nature can be used.
Survey in tax control
It should be borne in mind that the survey covers a wider list of financial and economic indicators of the facility. The procedure is carried out to identify financial stability, financial condition and possible prospects in terms of the development of the organization. When implementing this methodology, the primary accounting documentation is not necessarily checked. Control measurements of the volume of work, energy consumption, fuel resources, verification of objects of taxation and financing of hidden type by means of a survey, on-site inspection, questionnaires and so on can be carried out.
Analysis Category
Analysis as a method of financial control implies a detailed study of annual or periodic financial and accounting reports in order to provide an overall assessment of the results of financial work, as well as to ensure own capital, efficiency of its use, liquidity, etc. This tax control method differs primarily in a systematic approach. It includes economic-mathematical and statistical techniques, including grouping, summarizing, calculating the values of the generalizing type (average, absolute and relative), analysis of time series, index, tabular and graphical methods, building models of the economic-mathematical plan based on calculated coefficients . It is worth noting that the analysis is used as widely as possible for the economic assessment of the functioning of business entities or some aspects of financial and economic work, for example, the cost of commodity production, costs of its sale, and so on.
It must be borne in mind that the special role of this technique is manifested in the management system with respect to state and local finances, since a comprehensive analysis serves as the basis for the development of budgetary policies in the long term, as well as for the full regulation of socio-economic processes. For example, according to Art. 1152 of the Budget Code in force on the territory of the Russian Federation, one of the conditions for the availability of municipal and state guarantees is considered to be the analysis of the principal's condition in financial terms.
Audit as a method of tax control
An audit is a system of control actions of a mandatory nature on the actual and documentary verification of the justification and legality of financial and business transactions by the audited structure, the literacy of their reflection in the financial statements and accounting, the legality of the actions of management and the chief accountant, as well as other persons who are responsible according to law for their implementation.
In accordance with their content, revisions are documentary and factual. The first includes verification of financial documentation, as well as accounting and reporting.
Final part
So, we fully considered what are the forms of tax control and implementation methods. In addition, we sorted out the classification of the category that is known today. It is worth noting that the most comprehensive and deepest method of control is audit. However, the main form of control is a tax audit. The fact is that it is more effective in comparison with other procedures, judging by the practical point of view.