Improvement Directions for the Mechanisms of Corruption Counteracting in Russian Uniform Information System of Procurement
Improvement Directions for the Mechanisms of Corruption Counteracting in Russian Uniform Information System of Procurement

Summary/Abstract: By our opinion, it is necessary to typify state contracts with mandatory inclusion of budget documentation (estimated costs) as an integral part of the state contract. The analysis also shows that changes in the tax legislation make changes in theeffectiveness of corruption counteracting. These innovations should provide for the calculation and payment of profit tax and value added tax (VAT) on state contracts separately from receipts for other reasons (for example, cash flows of sales of goods, works and services received from non-state organizations and private individuals) to the prime contractor and its subcontractors performing at least 70% of the scope of work (services).The adoption of these measures will improve the information base of financial and tax control in order to raise money laundering risks and forming conditions for corruption in Russian government procurement system.

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