Tax monitoring as a new form of control was introduced in a separate section "V.2." in part one of the Tax Code of the Russian Federation by the Federal Law No. 348-FL of November 4, 2014.
Tax monitoring consists in providing tax authorities with access to taxpayers' accounting records for real-time control. If errors are found in accounting, the tax authorities are obliged to inform taxpayers about this.
This form of control is possible only upon a voluntary application of taxpayers and a decision of the tax authorities under the certain conditions.
The Federal Law No. 470-FL of December 29, 2020, amended the RF Tax Code providing for a significant reduction in the criteria for tax monitoring.
- the amount of taxes paid for a calendar year has been reduced from 300 to 100 million RUB;
- the annual total volume of income received and total value of assets has been reduced from 3 to 1 billion RUB.
In addition, the changes affected the grounds for conducting on-site inspections for the period when tax monitoring is carried out. Thus, on-site inspections are carried out in case of non-fulfillment by the taxpayer of the reasoned conclusions of the tax authorities before December 1 of the year following the period of tax monitoring. Previously, this period was not set. Clarification of tax returns with an increase in loss can also be a reason for on-site inspections.
The amendments also provide for:
- the right of officials of tax authorities conducting tax monitoring to demand from counterparties or other persons documents or information regarding the activities of taxpayers;
- the duty of tax authorities to notify taxpayers in electronic form about the appearance of grounds for early termination of tax monitoring and the right of taxpayers to provide appropriate explanations in this regard.
According to the Federal Tax Service of the Russian Federation, in 2017 tax monitoring was carried out in 21 organizations, in 2020 - in 95. Based on the results of consideration of the submitted applications, in 2021 this form of tax control will be applied for 209 companies.
Reducing the criteria for tax monitoring provides the potential for such control to be carried out on more than 5,000 taxpayers. Calculations are based on the data from the Information and Analytical system Globas.
Information agency Credinform has prepared a review of trends in manufacture of refrigerators and ventilation equipment.
The largest companies (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2014 - 2019). The company selection and analysis were based on data of the Information and Analytical system Globas.
The largest company in terms of net assets is LLC VEZA, INN 7720040225, Moscow region. In 2019 net assets of the company amounted to almost 5,5 billion RUB.
The smallest size of net assets in TOP-1000 had JSC DZERZHINSKHIMMASH, INN 5249014667, Sverdlovsk region, the legal entity is declared insolvent (bankrupt) and bankruptcy proceedings are initiated, 01.12.2017. The lack of property of the company in 2019 was expressed in negative terms -5,6 billion RUB.
For the last six years, the average industry values of net assets showed the decreasing tendency with negative dynamics of growth rates (Picture 1).
For the last six years, the share of ТОP-1000 enterprises with lack of property had the negative growth trend (Picture 2).
In 2019, the total revenue of 10 largest companies amounted to 37% from ТОP-1000 total revenue (Picture 3). This fact testifies the high level of monopolization in the industry.
In general, the growing trend in sales revenue with positive dynamics of growth rates is observed (Picture 4).
Profit and loss
The largest company in terms of net profit is JSC POLAIR-REAL ESTATE, INN 7703721898, Mari El Republic. In 2019 the company’s profit amounted to more than 1,5 billion RUB.
For the last six years, the average profit values show the growing tendency with the negative dynamics of growth rates (Picture 5).
Over a six-year period, the average net profit values of ТОP-1000 show the growing tendency, along with this the average net loss is decreasing (Picture 6).
Main financial ratios
For the last six years, the average values of the current liquidity ratio were higher than recommended values - from 1,0 to 2,0, with growing trend (Picture 7).
Within six years, the growing trend of the average values of ROI ratio is observed (Picture 8).
For the last six years, this business activity ratio demonstrated the decreasing trend (Picture 9).
92% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, their share in TOP-1000 total revenue is 38%, which is significantly higher than the national average value in 2018 – 2019 (Picture 10).
Main regions of activity
TOP-1000 companies are registered in 65 regions of Russia and are unequally located across the country. Almost 49% of the largest enterprises in terms of revenue are located Moscow region and Moscow (Picture 11).
Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest part have average financial position (Picture 12).
Solvency index Globas
Most of TOP-1000 companies got superior/high and strong/medium Solvency index Globas , this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).
A complex assessment of the manufacturers of refrigerators and ventilation equipment, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of positive trends within 2014-2019 (Table 1).
|Trends and assessment factors||Relative share, %|
|Dynamics of average net assets value||-10|
|Growth/drawdown rate of average net assets value||-10|
|Increase / decrease in the share of enterprises with negative net assets||-10|
|The level of capital concentration||-10|
|Dynamics of average net profit||10|
|Growth/drawdown rate of average revenue||10|
|Dynamics of average profit (loss)||10|
|Growth/drawdown rate of average profit (loss)||-10|
|Increase / decrease in average net profit of companies||10|
|Increase / decrease in average net loss of companies||10|
|Increase / decrease in average values of current liquidity ratio||5|
|Increase / decrease in average values of ROI ratio||10|
|Increase / decrease in average values of assets turnover ratio, times||-10|
|Share of small and medium-sized businesses by revenue more than 22%||10|
|Financial position (the largest share)||5|
|Solvency index Globas (the largest share)||10|
|Average value of factors||1,2|
favorable trend (factor), unfavorable trend (factor)