POSSIBLE APPROACHES OF DEFINING MINIMUM LEVEL OF VAT REFUNDS IN TAX ADMINISTRATIONS Cover Image

POSSIBLE APPROACHES OF DEFINING MINIMUM LEVEL OF VAT REFUNDS IN TAX ADMINISTRATIONS
POSSIBLE APPROACHES OF DEFINING MINIMUM LEVEL OF VAT REFUNDS IN TAX ADMINISTRATIONS

Author(s): Mikheil Chikviladze
Subject(s): Economic policy, Political economy, Policy, planning, forecast and speculation
Published by: Asociaţia de Cooperare Cultural-Educaţională Suceava
Keywords: Fiscal risk; Forecasting refunds; Minimum level of refunds; Operational risk; VAT refund;

Summary/Abstract: Poorly organized VAT refund system represents operational (Failure in fulfilling all claims within defined deadlines) as well as fiscal risk (accumulation of large stock of overpaid amounts in the long run subject to refund immediately or at a later period and theoretically claimable within the same period of time) for tax administrations. Hence it is important for tax authority to prepare and forecast expectable minimum level of possible refunds in advance. Refunds claimed above the previously estimated amounts, may also be used as an additional indicator of possible fraud or refund abuse. It also needs to be noted, that adequacy of refund system, happens to be one of the indicators, used to evaluate efficiency of tax administration and tax system as a whole.

  • Issue Year: 8/2019
  • Issue No: 2
  • Page Range: 0-0
  • Page Count: 4
  • Language: English
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