A typical tax-defaulting company is usually a small business, not large corporations. This was told by Kirill Chernovol, a researcher at the Gaidar Institute's Laboratory for the Analysis of best international practices.
According to the expert, small companies often lack the financial reserves to withstand rising costs or delayed payments from customers.
“Small companies may not have financial reserves in case, for example, rent, payroll, or raw materials become more expensive, or if a counterparty delays payment, etc. This is one of the reasons for tax payment delays: salaries, rent, and payments to suppliers are more critical for a business’s survival,” noted Kirill Chernovol.
He also pointed to weak tax compliance in small businesses and a shortage of specialists.
“Small businesses may not have the funds, for example, to hire a tax lawyer or accountant. As a result, there may be more frequent errors in tax calculations and the application of the tax system—hence the arrears,” explained Kirill Chernovol.
Speaking about the rise in tax arrears, the expert noted the impact of expensive loans, rising costs, and increasingly complex accounting. When money becomes expensive, businesses have fewer opportunities to bridge cash flow gaps with loans
Kirill Chernovol emphasized that the rise in arrears is also linked to tighter tax oversight: the Federal Tax Service’s digital systems and risk-based audits, which are increasingly leading to additional tax assessments.