Anton Kabakov commented on “grey” wages for Expert Severo-Zapad

This week, the online magazine Expert Severo-Zapad published an article which once again raises the issue of payment of “grey” wages which is still relevant in Russia. According to statistics from the Federal Tax Service, the percentage of “grey” wages paid in Russia remains high not only for small and medium businesses but also for large companies.

Anton Kabakov, partner at Forte Tax & Law, shared his view on this matter with Expert Severo-Zapad. Anton is of the opinion that an increase in tax would not rectify the situation and would even have the opposite effect in this case. “There is only one way out of this situation which is to tighten tax administration rather than increase the tax burden”, commented Anton.

Anton also noted that he did not consider the steps taken by the government and the Federal Tax Service to retrieve income from the grey segment ineffective and mentioned that: “The level of tax administration has grown significantly over the past few years thanks, in particular, to the digitalization of this area.”

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