Tax Potential

Tax Potential

In 2022, the Federal Tax Service will start forecasting the amount of taxes for the regional budgets of the Russian Federation using the new analytical system “Tax Potential”.

All categories of business will come under control, from self-employed and sole entrepreneurs to organizations, regardless of the type of activity and the amount of revenue.

Based on 50 indicators, “Tax potential” will analyze the financial condition of the company and tax risks in order to determine the objective level of the tax base, that will allow to track deviations in the level of profitability, tax burden and average wages by industry and region.

The identified deviations will not at all show that the company is doing business outside the legal framework, but will become a signal for the Federal Tax Service to include these companies in the area of increased attention. Consequently, business shall be waiting for additional inquiries, salary commissions and field inspections from the Federal Tax Service.

One might see two purposes of using this analytical system:

• Firstly, the social goal –the system will allow regional authorities to more accurately predict budget indicators, because it will be based on potential tax revenue data.

• Secondly, the fiscal goal, they want to estimate how much taxes a business can bring and where else there are additional taxes for the budget.

Let's see what comes in 2022 and let’s hold our fingers crossed for the Federal Tax Service not to overestimate the potential of taxpayers.