Subject In addition to positive results, the introduction of the consolidated taxpayer institution has revealed a number of problems. The main problem is redistribution of tax revenues between the budgets of the constituent entities of the Russian Federation, which created difficulties with the implementation of expenditure commitments in many regions. Improvement of tax legislation stems from the need to analyze the introduced mechanism and identify its impact on taxpayers, and the revenues of federal and regional budgets. Objectives The objective of the article is to analyze the consolidated taxpayer institution in Russia. Methods On the basis of statistical data, we analyzed tax revenues from consolidated groups of taxpayers and made a conclusion about efficiency of the new tax initiatives. Results Among positive results we identify simplification of tax accounting for business, opportunity to add losses of some companies to profits of other companies and, therefore, to support unprofitable organizations without transfer pricing or, on the contrary, without equalizing the cost of goods, works and services. However, we emphasize that in general the income decreased: in 2012 and 2013 consolidated taxpayers transferred RUB 450.0 and 358.2 billion to the budgets of constituent entities of the Russian Federation respectively. Conclusions and Relevance The main advantages of the single taxpayer concept for the State are reduced costs of the State in terms of control over transfer pricing; reduced burden on tax authorities; improved competitive ability of Russian holdings owing to tax incentives, which ultimately should lead to an increase in tax revenues in the future; more equitable distribution of tax revenues between the subjects of the Russian Federation. As a result of the study, we have made proposals on improving the existing mechanism of consolidated group of taxpayers.
Keywords: corporate income tax, tax base, budgets, constituent entities, Russian Federation, consolidated group of taxpayers, foreign practices, consolidation, revenues, regions, regional tax incentives, tax rates, transfer pricing, tax audits
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