Pinskaya M.R.Financial University under Government of Russian Federation, Moscow, Russian Federation MPinskaya@fa.ru
Maksimova E.N.Financial University under Government of Russian Federation, Moscow, Russian Federation nalog_nii@fa.ru
Importance Due to the difficult financial situation of regions, the problem of analysis and assessment of their budget losses in the form of the lost tax revenues assumes great relevance. Objectives The article aims to evaluate and analyze the lost budget revenues of territories arising in connection with granting the tax privileges. To achieve these tasks, we discussed the following issues: clarification of the concept of lost budget revenues to perform an assessment of budgets of the territories; identification of the reason for the lost revenues of the territories' budgets; development of the evaluation techniques of lost revenues of the territories. Methods By using the econometric methods, we have analyzed the losses of budgets of the territories in connection with the tax incentives provision for business property tax and land tax, which are payable by organizations. We provide our own definition of lost tax revenues, which contains a reference to a time period, which allows taking into account the peculiarities of preparation of particular laws on budgets and performance reports. The paper identifies the causes of lost tax revenues of the territories' budgets. We have also developed the technique of lost revenues calculation, which was tested for statistical data of tax reporting, in terms of the Russian regions as well. Results The calculations showed that in some regions the losses amounted to 80% of the tax amount calculated excluding privileges, wherein the greatest losses occur on the land tax paid by organizations. We analyzed the evolution of the lost revenues structure by tax benefits provided by corporate property tax and land tax. We also revealed the deficiency of presenting statistical tax reporting that hinders budget loss evaluation, and proposed recommendations for its improvement. Conclusions and Relevance Our recommendations might be used by the representatives of the State and municipal authorities while planning and forecasting the territories' budget revenues.
Keywords: regional budget, local budget, tax relief, lost income, corporate income tax, entity property tax, land tax
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