Businesses have identified three main challenges they face. All three are government agencies
5 June 2024 15:06
In 2023, domestic businesses filed 1,336 complaints with the Business Ombudsman Council regarding problems in the relationship between entrepreneurs and the state. This is stated in the Council’s report, according to [Kommersant]
According to statistics, most complaints from businesses concerned three main areas. Specific government agencies are responsible for each area.
Top 3 business problems in 2023:
- tax authorities – 64% of appeals to the Council (related to the blocking of tax invoices, non-enforcement of court decisions on their registration and inclusion of taxpayers in the “risky” category)
- law enforcers – 12% of complaints;
- customs – 8% of complaints.
In the first quarter of 2024, tax complaints accounted for 60% of all appeals, 14% of applicants complained about law enforcement, and 7% of entrepreneurs were concerned about customs.
The Business Ombudsman Council claims to be investigating the actions of the tax authorities. As it turned out, its constant activity in inspecting businesses is almost useless.
“The Council found out that 99% of tax revenues are provided by voluntary tax payments, and the share of revenues from additional charges determined as a result of inspections has not reached 1% over the past 6 years,”
– the report says.
The business community perceives tax audits as a fiscal and punitive tool of the state. Therefore, the Council calls on the state to move away from the destructive practices of “punishing” business for any mistake.
“In the Council’s opinion, government agencies should adhere to the principle of good governance, make direct contact with business and consult it before “taking a shot” at those who currently support the country’s economy,”
– the report says.
Meanwhile, entrepreneurs will face other changes: the tax for individual entrepreneurs will be increased by 4 times.
