Personal tax management: Voluntary initiative or forced measure

Abstract

Purpose The purpose of the work is to determine the necessity for individual taxpayers’ conducting personal tax management (by the example of modern Russia) and to develop its conceptual model that reflects the logic of this process. Methodology For determining the level of necessity for personal tax management, the authors use the method “ad absurdum” with foundation on classic logic. This method is supplemented by a complex of general scientific methods: analysis, synthesis, induction, deduction, and graphic presentation of information (formalization). Results The authors analyze ratio of pros and cons of personal tax management and determine that it is necessary in cases of purchase of property, conduct of individual entrepreneurial activities, employment, and decisions on purchase of goods—that is, in most situations faced by a modern individual taxpayer—and allows maximizing the obtained profit, reducing related tax costs, and reducing taxation risks. It is substantiated that personal tax management is a forced measure, which is critically necessary for a modern individual taxpayer. The logic of practical implementation of personal tax management is reflected by the proprietary conceptual model, in which directions and tools of personal tax management are systematized and its purpose and expected results are given. This model is to ensure transparency and clarity of the process of personal tax management for individual taxpayers and make its mass usage possible. Recommendations Wide transition from uncontrolled taxation to personal tax management is recommended—it will allow increasing the population’s living standards as it will ensure more precise individual budgeting and prevention of individual tax crises related to factual impossibility to pay taxes.