OREANDA-NEWS. November 22, 2010. The prime minister congratulated the staff of the Federal Tax Service on the service’s 20th anniversary, and expressed hope that it can continue to meet the challenges of today and reflect the interests of the state to the utmost. In turn, Mikhail Mishustin reported on the agency's results for the first 10 months of this year. He said that, to date, the tax collecting plan for the budget is 87% implemented.

Transcript of the beginning of the meeting:

Vladimir Putin: Mr Mishustin, the 20th anniversary of the establishment of the tax service is upon us. The tax service is not a body that makes money, but one that takes it away. And yet, any rational person understands the important role the tax services play in any economy and any state. It is important, of course, that the legislative, legal, and regulatory framework of the tax service has been properly developed. But how the process of administration is organised is no less important. I want to thank all the employees of the tax service for their work, and congratulate you and all your staff on the 20th anniversary. I wish you success in fulfilling this very important state function, which is necessary for every country. I also want to express my hope that the vital function the tax service performs will be performed in a dignified manner, and that you will give taxpayers the attention they deserve, both individuals and legal entities, and work together with other authorities pursue the results that the government expects of you. You have major tasks ahead of you, for this year and next. In this regard, allow me to ask the usual question: how is your current work going, how are tax collection plans being implemented in the second half of this year? I know that you've set a good tempo. How are you maintaining it in the most recent months of 2010, which is almost over?

Mikhail Mishustin: Thank you, Mr Putin. You are absolutely right about the current situation. The trend, which started at the beginning of the year, has been maintained. Our collection rates for the federal budget are growing. The rate is currently up to 29%. And consolidated, if you look at all budget levels – local, regional and federal – the growth rate is 24.5%. And I would also like to say that today we have summarised our results, including those in October. We have expanded the panel that is comprised of all the heads of the tax inspectorates. And we are confident that we will complete the task for the federal, regional and local budgets. We have completed 87% of work to date on the relevant budget parameters.

In addition, we are encouraged by the trend of growing profit tax. Last year, there was a significant decrease. It played an important role in the consolidated budget of the Russian Federation – 32% in 2008, and declined significantly during the crisis of 2009 – it was 20%. Now it has begun to grow, and today its share is 24%. We hope that this is further evidence of economic recovery.

Mr Putin, I would like you to present you with a souvenir. It is the resolution of the Council of Ministers of the USSR from January 24, 1990 on the establishment of the State Tax Service. Tax services were established at the same time in the Union republics. Here you are (handing over the document), I would like you to keep it as a memento...

Vladimir Putin: Thank you.

Mikhail Mishustin: ... and I want to also say that we had a very large international conference, which, for the first time in Russian history, was attended by representatives of the tax administrations from 32 countries, with 52 delegates. For the first time, the heads of the French tax authorities visited us – the head of the tax service of this country is also president of the European tax administrators. We also had visitors from the United States, Switzerland, Cyprus ... In general, a very large number of countries. During the conference, we were in dialogue with business and were completely open about what the Federal Tax Service of the Russian Federation does, how our business is faring abroad, and how Western businesses are faring in Russia. We conducted many events and examined tax treaties... This is the work that was done.

Vladimir Putin: Very well. The powers of tax authorities are extensive. I hope that you and all your staff will do everything to ensure that the procedures, mechanisms and tools used by the tax service are able to meet the challenges of today, reflect the interests of the state to the utmost and take into account the interests of economic actors and citizens of the Russian Federation.