NATALIA KORNIENKO: AUTHORITIES DO THEIR UTMOST TO DEMOTIVATE “LABOR PIRATES”

Natalia Kornienko, Head of Tax System Development Department of the Gaidar Institute, moderated session «Tendencies of tax legislation” at the Conference “Taxes-2019” held on June 27 in Moscow.
Onus of proof related to tax default  should rest on the state, the most interested party, if monitoring over citizens’ expenditures will be introduced in the Russian Federation. Natalia Kornienko, moderator of the session, expressed this opinion at the Conference.

Bella Panina, Deputy Director of the Investment Policy Department, Ministry of Economic Development, has earlier said that Ministry consider the idea to introduce systemic control over expenditures and incomes of individuals aimed at prevention of gray economy. Natalia Kornienko supported the idea of the Ministry of Economic Development.

Expert expressed her opinion as follows: «Probably, not everybody wants it but the most civilized way to put the gray part under the spotlight is to introduce control over expenditures. No investigation will be required, no need to break the door of the apartment with a boot kick. Nothing of this kind will be needed. Probably, the whole process will involve something but it will be minimum. If you have assets, you are responsible for them, you have to show source of income”.

However, according to Natalia Kornienko the authorities of the Russian Federation do their possible and impossible to demotivate “labor pirates”. «People pay taxes and charges in order to get various services from the state, i.e medicine, pension, infrastructure, etc. Expert explained the philosophy of “gray” employees: If citizens see that their taxes disappear in the black hole unreturned, what ifs the reason for them to “heat the Universe”?