RIA Rating - July 14 The total revenues of the regional budgets of the constituent entities of the Russian Federation for January - May 2017, according to the Federal Treasury, amounted to 3.766 trillion rubles. According to RIA Rating experts, compared to the same period in 2016, the total volume of budget revenues of the constituent entities of the Russian Federation increased by 10.1%, and the growth rate is significantly faster than inflation, which, according to Rosstat, amounted to 1.7% in the first five months of 2017. In 66 Russian regions there was an increase in budget revenues, in the Republic of Tyva their volume did not change, and in 18 it decreased. It is worth noting that in 45 regions the growth rate of budget revenues was higher than the Russian average.

The total tax and non-tax revenues of the budgets of the regions of the Russian Federation for January - May 2017 amounted to 3.15 trillion rubles, which, according to RIA Rating experts, is 10.2% higher than for the corresponding period in 2016. The volume of tax and non-tax revenues of regional budgets also increased in 66 constituent entities of the Russian Federation, did not change in the Rostov region and the Republic of Buryatia, and decreased in 17 regions.

The leader in terms of growth rates of tax and non-tax revenues was the Nenets Autonomous Okrug, where the volume of revenues increased by 95%, which was largely due to an almost twofold increase in corporate income tax collections. The five-fold increase in corporate income tax revenues made a significant contribution to the total volume of tax and non-tax revenues of the Republic of Crimea, which grew by 82% over the five months of 2017. The top three leaders in terms of growth rates of tax and non-tax revenues are closed by the Kemerovo region (+52%), where corporate income tax revenues also increased significantly.

The volumes of tax and non-tax revenues decreased most significantly in the Sakhalin region (-34%) and the Kabardino-Balkarian Republic (-35%).

The total volume of regional budget expenditures at the end of five months of 2017 amounted to 3.2 trillion rubles, which is 5.2% higher compared to the same period in 2016. The growth rate of regional budget expenditures turned out to be lower than the growth rate of income, which led to an increase in the total budget surplus of the constituent entities of the Russian Federation and an almost halving of the number of regions with a budget deficit: according to the results of five months of 2017, there were only 25 of them compared to 45 a year earlier.

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Verbatim wording: “The discrepancy between the growth rate of expenses compared to the growth rate of income according to tax reporting data and the growth rate of expenses compared to the growth rate of income reflected in the financial statements.”

“Deciphering the indicator” contradicts the name of the indicator.

In fact, there are two criteria to check here:

1) Tax expenses should grow no faster than tax revenues (criterion “Expanding growth rate of expenses over the growth rate of income from the sale of goods (works, services)”)

The growth rate is calculated as the ratio of the current indicator to the base one (for example, the indicator for last year and for the current year). Tax income and expenses are determined from the profit declaration on lines 010, 020, 030, 040 of Sheet 02.

Example

According to the income tax return for 2010, the income of the Alpha organization from the sale of goods (work, services) amounted to 74,256,158 rubles. (page 010 sheet 02). The organization's expenses from the sale of goods (works and services) amounted to 69,448,546 rubles. (page 030 sheet 02). For 2009, income from sales amounted to 65,683,546 rubles, and expenses that reduce the amount of income from sales amounted to 64,354,645 rubles.

Revenue growth rate was 1.07 (74256158/69448546)
The growth rate of expenses was 1.02 (65683546/64354645)
The growth rate of expenses does not outpace the growth rate of income (1.02<1,07)

As a result, the organization is not included in the on-site inspection plan.

2) The ratio should be approximately met (criterion “Discrepancy between the growth rate of expenses compared to the growth rate of income according to tax reporting data and the growth rate of expenses compared to the growth rate of income reflected in the financial statements”):

Tp	Expenses cash	≈	Tr	Expenses bang	(2)
Tp	Income cash		Tr	Income bang

It is determined in three stages.

First, they find out the ratio of cost growth to revenue growth based on the income tax return.

Then the same calculation is made according to Form No. 2, while accounting income and expenses are determined from Form 2 by summing the lines (010, 060, 080, 090) and (020, 030, 040, 070, 100) of column 3 for reporting until 2011.

According to financial statements from 2011. income and expenses are determined on the Profit and Loss Statement by summing the lines (2110, 2310, 2320, 2340) and (2120, 2210, 2220, 2330, 2350) columns for the reporting period.

Lastly, the results obtained are compared.

Continuation of the previous example

data on LLC "Alfa"

Growth rate of accounting expenses 1.01 (65083/64254)

Accounting income growth rate 1.08 (75226/69745)

Relationship (2) is satisfied; the growth rate of accounting expenses does not outpace the growth rate of accounting income.

We compare growth rates in tax and accounting.

1.02 > 1.01 tax expenses grow faster than accounting expenses

1,07 < 1.08 налоговые доходы растут медленнее бухгалтерских доходов

The presence of both discrepancies may be interpreted by tax authorities as signs of concealment of sales proceeds while simultaneously inflating expenses.

There is a possibility that an on-site inspection will be scheduled for Alpha LLC.

What to do if you are at risk for this indicator

The accountant should analyze the situation and find out the reasons for the discrepancies.

Possible reasons for discrepancies in indicator (1):

Prices for manufactured products do not increase as significantly as for the necessary raw materials and components

You can refer to the accelerated growth of other costs: staff salaries, utility costs, etc.

Documents that will be useful in such a situation: statistical directories, information from exchanges, accounts of counterparties, price lists of suppliers, etc.

In addition, events such as a one-time payment of significant indirect costs, the development of new activities and almost inevitable losses, or a temporary cessation of shipment of goods can be used as arguments.

Possible reasons for discrepancies in indicator (2):

A large volume of transactions, reflected differently in accounting and tax accounting (policy for writing off inventory, fixed assets, etc.).

Judicial and arbitration practice

Decisions in favor of the taxpayer

1. The tax authorities recognized the increase in management expenses of UdmurtEnergoNeft LLC as unfounded. The reason is that these costs did not lead to an increase in profits.

The organization has created a new management system. Such expenses will not lead to a rapid increase in income since they are aimed at the future. Expenses aimed at generating income are considered justified.

(Resolution of the Federal Antimonopoly Service of the Ural District dated 04/05/2007 No. Ф09 -2229/07-С3)

2. Tax authorities, during an inspection of Molvino Agro, recognized the costs of major repairs of fixed assets that had not passed state registration as unfounded.

Court decision: to refuse the tax authority's request.

Expenses for the repair of fixed assets are taken into account for tax purposes regardless of the state registration of the right to fixed assets.

(Resolution of the Federal Antimonopoly Service dated January 26, 2010 in case No. A72-8244/2009)

The decision is not in favor of the taxpayer

1. The tax authorities, when auditing OJSC MPZ, did not recognize the expenses for consulting and management expenses as justified.

Court decision: satisfy the tax authority's demands.

The contractors who provided these services have disappeared, and it is impossible to verify the authenticity of the documents.

According to the literal meaning of paragraph. 3 clause 4 of the Publicly Available Risk Assessment Criteria, it is necessary to compare the following two indicators:

The result of comparing the growth rate of expenses with the growth rate of income according to tax reporting data

The result of comparing the growth rate of expenses with the growth rate of income according to financial statements.

The tax authorities did not explain how to make this comparison. The only thing that is clear is that any discrepancy between the indicators will be significant.

In our opinion, for ease of comparison it is necessary to first determine:

The difference between the growth rates of expenses and income according to tax reporting

The difference between the growth rates of expenses and income according to financial statements.

To do this, the value of the growth rate of income must be subtracted from the growth rate of expenses.

The calculation formulas are as follows:

1) Rtn = TRn - TDn;

2) Rtb = TRb - TDb,

where Rtn is the difference in the growth rates of expenses and income according to tax reporting;

Rtb - the difference in the growth rates of expenses and income according to financial statements;

TRn is the growth rate of expenses determined from tax reporting;

TDn - income growth rate determined from tax reporting;

TRb - rate of growth of expenses determined from financial statements;

TDb is the rate of income growth determined from financial statements.

A positive result of such a calculation will show that expenses are growing faster than income, and a negative result will show that income is growing faster than expenses. A zero result will indicate that the growth rates of expenses and income coincide.

The resulting values ​​can then be compared. Their equality will indicate that both in tax and accounting, expenses and income increase (or fall) in the same proportions.

If the resulting differences differ from each other, then tax authorities may suspect something is wrong.

We believe that tax authorities will have the most reason to pay attention to you if a positive difference in rates in tax accounting corresponds to a negative difference in rates in accounting.

This will mean that your tax expenses are increasing and your accounting expenses are falling, or that your tax income is falling while your accounting income is rising.

However, even if there are two positive differences, the attention of tax authorities may be attracted if the value of the difference in growth rates in tax accounting is greater than in accounting. Unfortunately, the Order does not indicate what difference in values ​​the tax authorities will consider critical for inclusion in the inspection plan. We believe that if the difference is small, there is no point in attaching importance to it.

Other cases of unequal differences are also associated with the risk of inclusion in the on-site inspection plan. However, it is not that big.

Difference Comparison Results

between the growth rates of expenses and income

according to tax reporting

and growth rates of expenses and income

according to financial statements

Note

Instead of differences, you can use ratios of growth rates for comparison, i.e. the quotient of the growth rate of expenses divided by the growth rate of income. In this case, the rapid growth of expenses will be indicated by a quotient value exceeding one.

Of course, there can be reasonable explanations for any discrepancies in growth rates. For example, financial reporting indicators are significantly affected by an unstable economic situation. However, tax officials will probably find out this during an on-site audit.

Therefore, in any case, it is necessary to analyze the reasons for the identified nonconformity and take measures in accordance with the results of the analysis.

EXAMPLE

Comparisons of differences in the growth rates of income and expenses according to tax reporting and according to financial reporting

Situation

According to income tax returns for 2013 and 2012. The growth rate of income for the Alpha organization was determined to be 107% and the growth rate of expenses to be 102%.

In turn, according to the financial statements, the growth rate of income will be 107%, and the growth rate of expenses will be 103%.

Solution

1. Let’s determine the difference between the growth rates of expenses and income according to tax accounting data. It will be -5% (102% - 107%).

2. Let’s determine the difference between the growth rates of expenses and income according to accounting data. It will be -4% (103% - 107%).

3. Let's compare the values.

As you can see, the difference between the growth rates of expenses and income in tax accounting is less than in accounting. For tax control purposes, such a ratio will most likely not be of interest to tax authorities. But another option cannot be ruled out.

In this regard, it is advisable for the Alpha organization to check its accounting data.

Outpacing growth rate of expenses over the growth rate of income from sales of goods (works, services)

Additional wording: “The discrepancy between the growth rate of expenses compared to the growth rate of income according to tax reporting data and the growth rate of expenses compared to the growth rate of income reflected in the financial statements.”

In fact, this criterion means checking two indicators:

1) Tax expenses should not grow faster than tax revenues (“The growth rate of expenses exceeds the growth rate of income from the sale of goods (works, services)”).

The growth rate is calculated as the ratio of the current indicator to the base one (for example, the indicator for last year and for the current year). Tax income and expenses are determined from the profit declaration on lines 010, 020, 030, 040 of Sheet 02.

You should analyze the structure of income and expenses and find out the reasons for the discrepancies. Possible reasons: prices for manufactured products do not increase as significantly as for the necessary raw materials and components. You can refer to the increase in other costs: staff salaries, utility costs, etc. Documents that will be useful in such a situation: statistical reference books, information from exchanges, counterparty accounts, supplier price lists, etc. In addition, you can use arguments use events such as one-time payment of significant indirect costs, temporary cessation of shipment of goods.

2) The proportion between expenses and income reflected in the tax and financial statements must be maintained (“Inconsistency between the growth rate of expenses compared to the growth rate of income according to tax reporting and the growth rate of expenses compared to the growth rate of income reflected in the financial statements”): Accounting income and expenses are determined from Form 2 by summing the lines (010, 060, 080, 090) and (020, 030, 040, 070, 100) of Column 3. Then the resulting results are compared. These discrepancies may be caused by transactions that are reflected differently in accounting and tax accounting (valuation of inventory, depreciation of fixed assets, etc.). The rules are prescribed in the “Order on the accounting policy of the enterprise”, taking into account the needs of the organization. On the one hand, it may be beneficial for her to show more profitable financial statements for investors or the bank, on the other hand, at a certain stage it may be legal to reduce income tax.

Payment of average monthly wages per employee below the average level for the type of economic activity in the constituent entity of the Russian Federation

It is proposed to obtain information on statistical indicators of the average level of wages by type of economic activity in a city, district or in a whole subject of the Russian Federation from statistical bodies (in particular, from official Internet sites, from statistical collections and upon requests), as well as from bodies Ministry of Taxes and Taxes of the Russian Federation.

Tax authorities usually calculate the average salary based on tax return data or calculation of advance payments for insurance contributions to the Pension Fund, since it is submitted by all organizations (both the simplified tax system and the UTII), and these reports are submitted quarterly. The tax base is taken from this report. And the average number of employees is determined from the 4-FSS form, since the reports to the Pension Fund simply contain the number of working people.

If this criterion is of interest to the tax authorities, it is necessary to provide the maximum number of facts and documents showing the justification of the low income of staff. Possible reasons for low wages:

employees working part-time (this should be visible from time sheets);

short experience in the company;

low qualifications of personnel (this is evidenced, in particular, by length of service).