Development of the tax administration in Russia: Results and prospects

Georgy A. Borshchevskiy, Nodar Z. Mossaki


The study aims to identify the milestone events in the development of the tax administration in post-Soviet Russia and to offer recommendations for its further improvement. We tested the hypothesis about the relationship between the development of the tax system and tax administration, which, once established, can play a role in the improvement of the tax administration’s efficiency. The study relies on quantitative (regression and correlation analysis, factor analysis, principal component analysis) and qualitative methods (classification, thesaurus analysis, SWOT-analysis, critical points method). We also analyzed the legal acts describing the goals (target indicators) for the development of the tax system and tax administration and propose a set of integral indices characterizing these processes. The key events (factors) for the period starting from the 1990s to the present were identified and ranked in order of importance. Their impact was investigated with the help of SWOT-analysis and factor analysis methods. We found that in the given period, there was an increase in the correspondence between the goals of the tax administration and the goals of the tax system. This means that the tax administration’s management and staff have become more motivated to upscale their priorities and to orient their activities towards public good. The analysis of indices for the given periods has shown improved performance of the tax system and tax administration. The index of tax administration development is based on four indicators. Between the 1990s and 2010s, the index grew by 13% mainly because of the expanded scope of functions of the tax administration, staff downsizing and optimization of the remuneration system. We found that there is a significant statistical relationship between the indices of development of the tax system and tax administration.

For citation

Borshchevskiy G.A., Mossaki N.Z. Development of the tax administration in Russia: Results and prospects. Journal of Tax Reform. 2021;7(2):114–133.

 Article info

Received May 27, 2021; Revised July 19, 2021; Accepted August 14, 2021



tax system, tax service, tax authorities, tax administration, civil service, reform, SWOT-analysis


Strauss H., Schutte D., Fawcett T. An evaluation of the legislative and policy response of tax authorities to the digitalization of the economy. South African Journal of Accounting Research. 2020;8(4):96–126.
2. Tanzi V. Pellechio A. The Reform of Tax Administration. Working Paper Washington, D.C.: IMF, 1995 (No 95/22). Available at:
3. Farny O., Franz M., Gerhartinger P., Lunzer G., Neuwirth M., Saringer M. Tax avoidance, tax evasion and tax havens. Department of Tax Law of the Chamber of Labour Vienna; 2015. Available at:
4. Frampton D. Practical Tax Administration. Bath: Fiscal Publications; 1993. Available at:
5. Bejaković P. How to Achieve Efficiency and Equity in the Tax System? Revija za socijalnu politiku. 2020;27(2):137–150.
6. Augustine A.A., Folajimi A.F., Ayodele A.L. Quality of tax services, Moderated by trust in State Internal Revenue service and voluntary tax compliance behaviour among Individual taxpayers in South-West, Nigeria. Journal of Accounting, Business and Finance Research. 2020;8(2):47–57.
7. Mookherjee D. Incentive reforms in developing country bureaucracies: lessons from tax administration. Washington, DC: World Bank; 1997. Available at:
8. Grote M. How to Establish a Tax Policy Unit. International Monetary Fund; 2019. Available at:
9. Bird R.M. Fiscal Decentralization and Decentralizing Tax Administration: Different Questions, Different Answers. In: Valdesalici A., Palermo F. (eds) Comparing Fiscal Federalism. Leiden: Brill Nijhoff; 2018, pp. 190–220.
10. Jang S., Eger R.J. The effects of state delinquent tax collection outsourcing on administrative effectiveness, efficiency, and procedural fairness. American Review of Public Administration. 2019;49(2):236–251.
11. Klun M. Performance Measurement for Tax Administrations: The Case of Slovenia. International Review of Administrative Sciences. 2004;70(3):567–574.
12. Güler H., Kaba H. The Efficiency of Tax Administration in Turkey. In: Economic Issues in Retrospect and Prospect. Istanbul: IJOPEC; 2018, pp. 301–316. Available at:
13. Vasilyev S.V. Taxation in Russia during the Transition to a Market Economy and Taxes as an Instrument of State Regulation of Economy in the Late Twentieth Century and the Early Twenty-First Century. Economy and Business: Theory and Practice. 2018;(10-1):32–41. (In Russ.)
14. Shibaeva N.A., Zarudneva A.I., Sozinova A.A., Shuvaev A.V., Alekseev A.N. Restructuring of Tax Liabilities as an Upcoming Trend of Economic Diversification in Modern Russia. In: Gashenko I.V., Zima Y.S., Davidyan A.V. (eds) Optimization of the Taxation System: Preconditions, Tendencies and Perspectives. Springer; 2019, pp. 83–89.
15. Belev S.G., Sinelnikov-Murylev S.G., Sokolov I.A., Tishchenko T.V. Fiscal Policy to Address External and Internal Challenges. In: Economic Policy of Russia. Turbulent Decade of 2008–2018. Moscow: Delo; 2020, pp. 218–246. (In Russ.) Available at:
16. Gromov V.V. Regional Tax Competition at Different Phases of Tax System Evolution in Russia. Financial Journal. 2020;12(1):41–57. (In Russ.)
17. Vishnevsky V.P., Goncharenko L.I., Nikulkina I.V., Gurnak A.V. Taxes and Technologies: Past, Present and Future of the Russian Tax System. Terra Economicus. 2020;18(4):6–31. (In Russ.)
18. Moloshnikova D.A., Baytemirova K.R. The Federal Tax Service and Digitalization. Achievements of Science and Education. 2020;(10):22–27. (In Russ.) Available at:
19. Kozaeva O.T., Dobaeva A.V. Improvement of the Forms and Methods of Organization of Debt Collection Activities of the Federal Tax Service. Journal of Economy and Entrepreneurship. 2020;(1):120–124. (In Russ.) Available at:
20. Pogorletskiy A.I., Bashkirova N.N. The dynamics of tax system and tax administration development in the Russian Federation. Journal of Tax Reform. 2015;1(1):4–24.
21. Kartashova G.N. Development of Methodology for Assessment of Tax Administration Efficiency. Nalogovy vestnik. 1999;(11):12–15. (In Russ.) Available at:
22. Alekhin S.N. Methodology of Assessment of Territorial Tax Potential. Rossiiskii nalogovyi kur’er. 2005;(6):6–12. (In Russ.) Available at:
23. Boyko S.V. Methodological Approaches to Research of the Tax Regulation of Innovative Activities of Companies. Journal of Donetsk National University. Series B. Economics and Law. 2020;(1):12–19. (In Russ.) Available at:
24. Kalashnikova P.P. Management of Tax Administration in Russia. Journal of Saratov State Socio-Economic University. 2009;(2):101–105. (In Russ.) Available at:
25. Moroz V.V., Moroz S.V. Indicators of Tax Administration Efficiency. Economic Problems and Legal Practice. 2018;(2):50–53. (In Russ.) Available at:
26. Nadtochy E.V. Methods for Assessing Efficiency of Tax Control. Taxes and Taxation. 2012;(3):21–29. (In Russ.) Available at:
27. Mosaki N.Z. Education in government body universities: The case of the tax academy. Voprosy obrazovaniya / Educational Studies Moscow. 2009;(4):107–8 (In Russ.) Available at:
28. Radcliffe V.S., Spence C., Stein M. Professional repositioning during times of institutional change: The case of tax practitioners and changing moral boundaries. Accounting, Organizations and Society. 2018;66:45–59.
29. Gribnau H. Soft Law and Taxation: The Case of the Netherlands. Legisprudence. 2007;1(3):291–326.
30. Hainsworth R., Tompson W. Tax Policy and Tax Administration in Russia: The Case of the Banking Sector. Post-Communist Economies. 2002;14(3):277–300.


Copyright (c) 2021 Georgy A. Borshchevskiy, Nodar Z. Mossaki

SCOPUS logo eLibrary logoeLibrary logo  DOAJ logo ERIH PLUS logo 

© Journal of Tax Reform : ISSN 2414-9497 (online), ISSN 2412-8872 (print)