2023 (20), №3

Evaluating the Effectiveness of the Tax System and Incentives: Criteria and Methods in Russian and International Research

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Rozenberg, A. V. (2023). Evaluating the Effectiveness of the Tax System and Incentives: Criteria and Methods in Russian and International Research. AlterEconomics, 20(3), 641–662. https://doi.org/10.31063/AlterEconomics/2023.20-3.8


The task of evaluating the effectiveness of the tax system is crucial for two main reasons. Firstly, it aligns with global efforts to improve financial transparency and combat economic inequality. Secondly, in Russia, this assessment is especially important as it pertains to reducing offshore activities in the national econo­my and refining the tax framework to boost economic growth and address the aftermath of the 2022 recession and financial shock. This study examines research by Russian and international scholars on the effectiveness of the tax system and incentives. Emphasizing the diverse perspectives in constructing tax systems, our study aims to review the contemporary approaches in Russian and international literature and to ascertain their applicability in enhancing the Russian tax system. We employed the snowball method to source academic materials, starting with searches in international databases and the Russian e-Library using keywords like “taxation”, “tax system”, etc. The selection was then broadened by reviewing references cited in these articles. Our analysis covered 48 publications, categorized into four clusters: economic inequality, economic growth, investment, government budget, and tax burden. Our study underscores the effectiveness of employing regression analysis for the comprehensive evaluation of national tax systems. It also highlights the importance of supplementary research methods when assessing national tax systems, particularly considering the influence of the international taxation system. This approach allows for a more nuanced understanding of each country’s specific dynamics. Looking ahead, our research can serve as a valuable tool for appraising the efficacy of the Russian tax regime in regulating cash flow movements, including those to the Republic of Cyprus, a key offshore jurisdiction for the Russian economy prior to the onset of the 2022 crisis.

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Artem V. Rozenberg — PhD Student, Ural Federal University named after the first President of Russia B. N. Yeltsin; Senior Associate of the Audit and Assurance Department, PricewaterhouseCoopers Ltd; https://orcid.org/0000-0001-8035-771X (19, Mira St., Ekaterinburg, 620002, Russian Federation; Nicosia, the Republic of Cyprus; e-mail: rozenberg.art@yandex.ru).

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