Causes, Consequences and Preventing the Abuse of Special Tax Regimes in Russia

Special tax regimes are an international standard in the development of small and medium-sized businesses, as they involve reduced tax rates and simplified accounting. Like all preferential tax regimes, special tax regimes have threshold entry criteria. Sometimes, unscrupulous representatives of large businesses try to illegally obtain opportunities that are provided to small and medium-sized businesses and get tax benefits. They use the popular "business splitting" scheme to divide their large company into several small ones to fall under the criteria of preferential treatment. The identification and prevention of such schemes of abuse of special tax regimes is a serious challenge for the tax authorities. The problems of abuse of special tax regimes are often discussed by the perspective of business representatives and much less by the perspective of the state. Therefore, the relevance of this study lies in the consideration of the subject from the side of public administration. By analysing the law enforcement practice and studying the behaviour of business representatives in informal business forums, telegram channels and other resources, the author of this paper will offer practical recommendations to the Federal Tax Service for a more effective fight against the abuse of special tax regimes in Russian Federation. This will be the result of the paper.