Restructuring of tax liabilities as an upcoming trend of economic diversification in modern Russia

Abstract

Purpose The purpose of the paper is to substantiate possible and necessary use of restructuring of tax liabilities as an upcoming trend of economic diversification in modern Russia, and to develop practical recommendations. Methodology In this paper we apply a complex of general scientific methods, as well as methods of time-series analysis in economic statistics—horizontal and trend analysis. Information and empirical background is provided by data of the Center for Macroeconomic Analysis and Short-Term Forecasting of the Russian Federation, RIA Rating, and Federal State Statistics Service of the Russian Federation (Rosstat). To define the relevance of the mechanism for restructuring tax liabilities in modern Russia, the authors address to dynamic pattern of enterprises and closed down ones due to bankruptcy in 2007–2017. Results As a result, we had proved that the restructuring of tax liabilities is an upcoming trend of economic diversification in modern Russia. It is revealed that over recent years, the demand for this mechanism in relation to growing unprofitability of enterprises and their frequent close-down due to bankruptcy has increased in Russian economic system. However, the state introduces tight restrictions for enterprises restructuring their tax liabilities to protect own interests (guaranteed replenishment of budget and extra-budgetary funds). Recommendations In order to ensure widespread availability of the mechanism to restructure tax liabilities for modern Russian enterprises, it is advised legislative consolidation of priority implementation of restructured tax liabilities. To aim this mechanism at diversification of the Russian economy, we propose to grant preferential terms (reduced limit of tax liabilities and extended term of their restructuring) for enterprises of the most promising and strategically crucial branches of national economy in terms of economic diversification.