Taxation


Taxation
   Since independence, the Russian taxation system has regularly been criticized as one of the country’s most pernicious problems. Under Boris Yeltsin, it was estimated that barely one-half of all tax revenues were collected. In 1999, a major reform of the system was initiated, focusing on simplification and the elimination of loopholes. Under Vladimir Putin, there has also been an attempt to lessen the burden on businesses and individuals. One of the mainstays of the system is a profit tax on corporations; however, firms developed extremely effective mechanisms for avoiding reporting gains. A popular saying in Russia is: “If a company reports a profit, then it has a bad accountant.” Other sources of tax revenue for the federal government include a capital gains tax, a 13 percent personal income tax, the Unified Social Tax to support the welfare and health care systems, a value-added tax or VAT (18 percent on most goods), customs duties, and federal license fees. Asset taxation is an important source of income for regional governments. Other funds come from taxes on real estate, gambling, and transportation, as well as sales taxes and excise taxes on luxury goods, tobacco, and alcohol.
   Income taxes on foreign residents are often higher than those on Russian citizens, but profit taxes are lower in order to attract foreign investment. Taxes on the oil and natural gas industries are critical to the government budget. Mikhail Khodorkovsky, once Russia’s wealthiest person, was arrested in 2004 on fraud and tax evasion charges, though politics are thought to have been the driving force behind his detention.

Historical Dictionary of the Russian Federation. . 2010.

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  • taxation — tax‧a‧tion [tækˈseɪʆn] noun [uncountable] TAX 1. the act or system of charging taxes: • These reforms will occur at the same time as changes in banking and taxation. • Reinvested profits would be exempt from taxation (= would not be taxed ) …   Financial and business terms

  • taxation — [ taksasjɔ̃ ] n. f. • taussacion 1283; lat. taxatio ♦ Le fait de taxer (I); son résultat. 1 ♦ Fixation par voie administrative, réglementaire, du prix maximum (parfois minimum) applicable à certains biens, certains services. Taxation de denrées… …   Encyclopédie Universelle

  • taxation — tax·a·tion n 1: the action of taxing: as a: the imposition of taxes b: the judicial determination of costs 2 a: revenue obtained from taxes b: the amount assessed as a tax 3: a particular system of taxing …   Law dictionary

  • Taxation — refers to the act of a taxing authority actually levying tax. Taxation as a term applies to all types of taxes, from income to gift to estate taxes. It is usually referred to as an act; any revenue collected is usually called taxes. Taxation can… …   Investment dictionary

  • Taxation — Tax*a tion, n. [F. taxation, L. taxatio a valuing, estimation, from L. taxare. See {Tax}.] 1. The act of laying a tax, or of imposing taxes, as on the subjects of a state, by government, or on the members of a corporation or company, by the… …   The Collaborative International Dictionary of English

  • taxation — Taxation. s. f. v. Il n a guere d usage qu au pluriel, & sign. Certains droits attribuez à quelques Officiers qui ont le maniement des deniers du Roy. Il a tant pour ses taxations. de tout l argent qui luy passe par les mains, il a cinq deniers… …   Dictionnaire de l'Académie française

  • taxation — [tak sā′shən] n. [ME taxacion < MFr taxation < L taxatio < pp. of taxare: see TAX] 1. a taxing or being taxed 2. a tax or tax levy 3. revenue from taxes …   English World dictionary

  • Taxation — (v. lat.), Schätzung, Würdigung des Werthes eines Gegenstandes, bes. wenn sie im Processe od. sonst in Veranlassung eines juristischen Geschäftes geschieht. Die T. erfolgt durch Personen, welche entweder von den betheiligten Parteien eigens zu… …   Pierer's Universal-Lexikon

  • Taxation — (lat.), Schätzung oder Wertbestimmung einer zum Verkauf, zum Austausch oder zur Übergabe bestimmten Sache, geschieht auf Anordnung einer Staatsbehörde oder auf Veranlassung von Privatpersonen durch Taxatoren, Sachverständige, die von den Parteien …   Meyers Großes Konversations-Lexikon

  • taxation — (n.) early 14c., imposition of taxes, from Anglo Fr. taxacioun, O.Fr. taxacion, from L. taxationem (nom. taxatio), noun of action from pp. stem of taxare (see TAX (Cf. tax) (v.)) …   Etymology dictionary

  • taxation — ► NOUN 1) the levying of tax. 2) money paid as tax …   English terms dictionary