Issues of improving the effectiveness of enforcing the brics countries’ legislation against tax evasion

Abstract

Taxes are the main source of budgetary income for any state. Tax offences inflict damage on the global financial system and undermine the economy of specific states. According to the available statistics, the BRICS countries bear considerable losses due to tax violations. Among all tax offenses, tax evasion is characterized by the greatest public danger. This delict is criminally punishable under practically any jurisdiction. The author analyzes the legal regimes of combating tax offences in the legislation of the BRICS countries using the example of tax evasion. The author also identifies those constituent elements of crime for which the BRICS countries could have common approaches, thus strengthening the existing forms of inter-state cooperation in combating tax offences. Taking into account the doctrinal and practical knowledge, the author presents possible models of reconciling the differences between the legislation of the BRICS countries regarding the understanding of dangerous forms of tax evasion. The article also raises the issue of differentiating between tax evasion, tax avoidance and tax optimization. The author argues in favor of a differential approach to taxation and criminal law qualification of the taxpayer’s actions depending on how willing they are to cooperate with tax control measures. The use of international experience in developing the standards and measures to combat tax offences implemented within the framework of the UNO, the OECD, and the Council of Europe is recognized as necessary and possible. The author assesses the prospects of unification, harmonization and other forms of coordination of the BRICS countries’ legislation on counteracting tax offences together with the internationally adopted and enforced measures to counteract the diffusion of the tax base and the reduction of taxable revenues.