In the process of forming a centralized taxation system, the need arose to create a certain authority, whose responsibilities were to include the widespread implementation of the standards of the approved tax policy. The tax office has become such an institution.
The Tax Inspectorate is an executive body that collects payments and monitors compliance with tax legislation. This institution has a complex hierarchical structure. There are federal, regional, regional, city and district tax inspectorates.
This body performs a number of administrative functions related to economic activities. The main function of this institution is control. Based on the information provided in the tax returns of citizens, the tax inspectorate not only collects money from them, but also takes a number of measures to identify property hidden from taxation.
It is the funds of citizens collected by the tax inspectorate that finance socially significant facilities, subsidies to needy groups of the population, and payment of wages to public sector employees.
The responsibilities of this service also include the registration of firms and commercial associations for the purpose of subsequent control over their financial activities.
The question arises, why the functions performed by the tax inspectorate cannot be distributed among related departments? Why was it necessary to form a separate executive body?
The fact is that the procedures related to taxation are extremely laborious and require a large number of checks and documentary evidence. Due to the daily circulation of citizens, a huge amount of documentation accumulates, the processing and storage of which requires a large staff of employees.
In addition, it is often necessary to carry out field visits in order to establish the reasons for the discrepancy between the data provided in the documents with the actual situation (this may turn out to be both a technical error and deliberate forgery). That is why the tax inspectorate is a separate executive authority.
