Issue ? 31. April 2012

Tax Budgeting in a Commercial Bank - Financial Management Technology

Elena V. Smirnova – graduate student, associate professor, Astrakhan State Technical University.
E-mail: econom1963@yandex.ru 

Tatiana V. Kotova – Ph.D., associate professor, Vice President for Financial and Economic Activities, Astrakhan State Technical University.
E-mail: t.kotova@astu.org

Tax planning in a commercial bank is a part of the overall corporate banking management, which allows predicting the tax payments of the credit institution, while optimizing its portfolio of tax for the local conditions and ensure long-term savings on taxes and income from the invested tax revenue in fiscal security.
Budgeting is, in a narrow sense, a tool, but in the presence of an organized system of budgeting, a technology (in a broad sense) of financial resources management.
To make effective use of technology of budgeting in the financial management, the technology should be characterized by all of the functions of the management process, namely planning, accounting, control and analysis, i.e. budgeting must synthesize them. Thus, tax planning in the budgeting system takes the form of self-control process of managing the tax liabilities by the  bank, combining some of the tasks of its individual elements.
To distinguish tax planning from tax planning in the budgeting system, the authors suggest to us the term “tax budgeting” for the latter. Tax planning in the budgeting and fiscal budgeting combines the features of the tax planning per se, as well as specific management technology of budgeting.

Keywords

Fiscal budgeting, tax planning, commercial bank, corporate management, management technology.