Vladimir Putin and Boris Titov
Photo: Alexei Druzhinin / TASS
Ombudsman for entrepreneurs Boris Titov has prepared for Vladimir Putin’s main policy document — the annual report of the business Ombudsman. RBC got acquainted with the complaints of the business and the solution of problems which will tell the President
Business Ombudsman Boris Titov has prepared its annual report on the problems of business in Russia, which he will soon present to President Vladimir Putin. The paper has more than 30 sponsors that are distributed across the clusters. In one of the components of the report — “the Book of complaints and proposals of Russian business” — marked 269 600 problems and solutions. RBC has reviewed the document.
Trade papers and reproduction reporting
The first and one of the most extensive sets of problems — control and supervision. According to the Ministry, the number of scheduled and unscheduled inspections of businesses, conducted last year, reached 2 million, writes Titov, however, surveys of entrepreneurs indicate that in fact, it comes to 10 million, taking into account “all types of control measures and administrative investigations”. Entrepreneurs, according to the business Ombudsman, do not notice reduction of the regulatory burden, which report annually to the authorities: officials agree to only 5.1% of respondents, and 56.1 per cent said to increase the number of inspections. More than half of respondents (51%) believe that punishment business has been tightened, and only 4.8% believe that they relented.
The data of the Ministry based on the official data of bodies of the control, while the reduction of inspections “is not the objective of the reform of control and Supervisory activity in and of itself cannot be considered as a definite sign, indicating the reduction of administrative load on business,” retorted the representative of the Ministry of economic development. “This can be a symptom of reducing the burden on bona fide business with a simultaneous increase of the business, systematically violate the requirements of the legislation,” she said.
But its effectiveness proved mode “Supervisory holidays” for small businesses introduced in 2015. In some regions it has helped to reduce the number of planned inspections by almost half. However, the guards behind the business is easy to get around the moratorium due to the growth in the number of unscheduled inspections and administrative investigations, the authors. However, the ban still need to extend for a further three years and it should include all types of control and supervision, which are now holidays do not apply, they say.
State and municipal institutions, in the opinion of the business community, engaged in “trade-paper”: a significant portion of payments of Russian companies is the purchase of certificates and examinations in state-owned enterprises, but not in the budget. The system of paid services in state-owned organizations should be eliminated entirely, believe the authors, and the checks to be spent on the preparation of such documents the money the relying Agency.
Ineffective policy of the state in relation to small and medium-sized businesses, is written in the report. She “is at most a few tens of thousands of businesses” and “cannot be a substitute for large-scale government policy of” development “millions” of companies. Significant problem the SME reporting, forms which continue to “breed”. They “are not harmonized with each other, contradictory, and the entrepreneur has to repeatedly specify the information that state agencies already have”, the authors indicate that the strategy in this area is “substantially revised”.
Offers employers officials could implement fairly quickly, but the problem in the wrong KPI, says the head of the expert center at the business Ombudsman Anastasia Alekhnovich. The authorities are primarily interested not in economic growth and a balanced budget, low inflation, growth of revenues through tax and non-tax payments, from-for what the economic activity and, as a consequence, the tax base is reduced, she believes.
Taxes as the presumption of bad faith
Part of the taxes the business has traditionally complained about the same large volume of reporting, the high fiscal burden and check. The volume reporting is not really reduced, increases the paperwork burden and the need for separate accounting and tax accounting, says the partner of law office A2 Mikhail Alexandrov. In addition, he points out, in recent years on actively introduces notification system (they have to steer business) — controlled transaction, a CFC account abroad, etc., and for each “failure to notify” is a penalty.
In 2016-2017, the number of tax reporting forms have not changed, said in response on to a request to RBC. However, three forms of statements previously submitted off-budget funds of social insurance Fund, pension Fund and HIF combined into one with fewer indicators by 1.6 times, specifies a press-service of the tax service.
Photo: Kirill Kuhmar / TASS
The report’s authors emphasize that tax laws are becoming “increasing sanctions bias” and very fragile — businesses do not have enough time to adapt to the changing rules of the game.
Another issue of business — the arrest of current accounts of the company in identifying tax arrears, it will paralyze the business activities are listed in the “Book of complaints”. While there is a trial, the company can not settle with counterparties and their own employees, business collapses, and the outcome of the case can be resolved in favor of the taxpayer, says the managing partner of the company “Lamczyk, Krupsky and partners” Alexander Lenchik. Procedural measures that can mitigate the business for this problem, in practice do not work well, he says. The report also calls to ban the collection of taxes, not paid by the organizations, with their managers and beneficiaries. By itself, this mechanism has a right to exist, considers Lemchak, but given the tight fiscal orientation of tax audits, the majority of entrepreneurs prefer to close the business to avoid losing all his property.
The transition to the online ticket office has not yet taken place, but will bring a number of challenges, believe the authors of the “Book of complaints”. Requirements for their installation impossible, and in fact the introduction of the online banks will lead to bankruptcy conscientious business and caring in the shadows, according to entrepreneurs. Manufacturers of cash registers was really not ready to transition to online cash the expert of the project “Circuit.CRF” eve Syriska business experiences an acute shortage of fiscal storage. In April, the head of the FTS Mikhail Mishustin assured that the tax would not penalize employers who do not have time to install online cash if the contract for the supply of KKT new sample.
Among other problems listed in the “Book of complaints”, the high level of insurance premiums for individual entrepreneurs to over-estimate the cadastral value of the property and nondecreasing level of non-tax payments and fees. The main problems for medium-sized businesses is the presumption of bad faith and excessive rate of contributions, total Aleksandrov from A2. “Jobs [founder of Apple Steve jobs] would have in our reality focus not on the creation of the first Mac, and the calculation and accrual of wages,” he says.
FTS of Russia does not agree with the conclusions given in the report of the business Ombudsman, to the service response to a request to RBC. Most of the changes in legislation associated with the elimination of gaps and ambiguities and is aimed at reducing administrative barriers. The number of site inspections FNS was reduced from 67 thousand in 2011 to 26 million in 2016, said in response to the service. The Finance Ministry has not commented on the report, reported in a press-Department service.
The inflated prices
The natural monopolies ‘ tariffs in Russia on average overestimated by 30%, the report said. The problem in the model tariff: monopoly prices included high cost, including ineffective. As a result, in some regions rates are rising faster than inflation. While the motivation to increase the efficiency of monopolies, since the rates are rising every year.
The authors propose to normalize the costs of the monopolies, to change the method of tariff setting to match rates only at the Federal level and set them in a year, but for six years.
Constantly increasing cross-subsidization in the electric power industry, when some consumers subsidize others (usually connected to networks of higher voltage subsidize connected to networks of lower). Tariffs for consumers on the low voltage classes should grow at an accelerated pace, although for some they still need to subsidize, experts say.
Under increasing pressure due to the emergence of new types of PDM (contract for supply of power was used during the reform of RAO “UES” for construction of new units, guaranteed investors high returns due to higher fees for consumers). Experts suggest to abandon the new PDM in those regions where there is no power shortage.
Another problem is the shortage of rail infrastructure. Not enough roads, and many existing bottlenecks, new construction is slow. As a result of the public overloaded, and the services the Railways do not meet the demands of consumers.
Photo: Valery sharifulin / TASS
The system of regulation of tariffs of the Russian Railways need to review first, written by experts. Now it is based on the so-called tariff corridor, which allows the monopoly to independently raise tariffs for individual consumers.
Dreams on banks
You must enter the insurance funds of small and medium business for 5 million rubles, to toughen responsibility of banks for “improper account activity” and put the Agency on insurance of contributions (ASV) third priority creditors in the bankruptcy of banks, the authors write. They also offer “significantly improve the quality of supervision.”
But to put ACB in the third turn of creditors illogical, as the Corporation uses the funds of the Central Bank to pay depositors, says the head of the Duma Committee on financial market Anatoly Aksakov. “Once the DIA should compensate these funds, and for the most part it is the realization of the assets of the banks,” he points out.
In turn, maintenance of insurance reimbursement for small businesses, already ripe for such a measure is in many countries, says the managing Director of the National rating Agency Pavel Samiev. But there is a great risk that the insurance small business will significantly increase the burden on the banks and the Central Bank (in 2015, the regulator is funding the deficit of the insurance Fund, as received from banks contributions not enough to pay). Under the insurance of small and medium business in the case of a guarantee of 1.4 million gets only 2.4 billion rubles., estimated by Aksakov. It’s a little, but “for insurance in the amount of 5 million rubles will be required where a large amount,” he said.
Dubious and point to toughen responsibility of banks for improper operation, says Samiev: to define such operations difficult, especially for banks and so there are rules that underpin what operations are valid for them and which are not. Initiatives for quality of supervision and responsibility of banks “for the account transactions” — too General requirements, which are more in the nature of slogans, says the Director for Bank ratings ACRES Kirill Lukashuk, in such formulations they are unlikely to consider on the merits.
Technology, construction, agriculture
Food manufacturers are suffering from excessive control, the authors write. Electronic veterinary certification (EMU) to be introduced in 2018, will result in a double financial burden on businesses. “No country in the world, a traceability system does not involve special additional documentation and veterinary certificate is not an instrument traceability”, — agrees the representative of the Soyuzmoloko Maria Rebit.
Camera Titov in his report also stands on the side of the critics of the “law of Spring” according to which since July of 2018, operators will have to store recordings of calls for their users, the content of their correspondence, etc., the November order of the President to clarify the stages of application of the law is not fulfilled, the industry is threatened by damage to at least 4.5 trillion, the authors (a rating issued by the Ministry of communications and FSB).
The report also lists a number of technical procedures that complicate and increase the cost of development projects. Recently, the profitability of the development projects have declined, so legislators are forced to improve the regulatory framework which today is still cheese, I am sure the General Director of investment company Key Capital Sergey kamluk. Most of the proposals Titova extremely relevant and will contribute to the development of the construction market, as well as to somehow improve situation with excessive bureaucracy, I’m sure the kamluk. This view is shared by the partner of the Collegium of advocates “Yukov and partners” Alina Ministry. “Many of the proposals aimed at simplifying the regulatory framework and tax legislation that may be perceived as a positive thing, which will get rid of unnecessary red tape in construction, and hence reduce the cost of the project,” says Ministry. At the same time, the proposal to limit land plots that fall under country Amnesty, acquired before the entry into force of Federal law No. 93 of June 30, 2006, may have a negative impact on ordinary citizens, warns Ministry.
With the participation of Anastasia Demidova, Anna Balashova, Alexei Pastushin