FINANCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600200332-2
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: June 29, 2011
• Sequence Number: 332
• Publication Date: October 19, 1948
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
%
194?, 611 were late.
In the Belorueeian 8s[l the situation is gttito unsatisfactory: 42.8
percent of all the amoral reports for 1946 aria 22 peroet of the
sad 2,348 monthly reports for 1946 which failed to observe the prescribed
tide limits. Of the amoral reports for 1946, d . in January cM February
ohibf acocuntents of enterprises which oompilad incorrect reports or
failed to nreaeat throe in time. In 1946. for instance. finnnoial
emp1oynes were very lenient towards iid1ractione of the regulations for
reports, they haw's not used their right of action against directors sad
oheakinC of these reports by state revenue inspectors.
The most ialportant conditions for the fulfi l ent of the state
revenue plan is the timely receipt from enterprises aa3 eaonomio organ-
Rhe irspartance of the deae@e to the bttd8et caused by violation of
the state fiismial dieoi_lYas dad by negli0ent finaaoial agenoiee can
be illustrated by the sass of the .Aserbaplz1 an edninietration of
Glavnaftmmb in Mministrat on of Petroleum 2upply):lateness of the
Jsamul'y 1946 report delayed the pigment of 503,300 rubles of ttarnover
agencies with considerable delays.
tax for 25 days, the February report delaysd 934,.700 rubles for 18
daps, the Oune report delayed 364,800 rubles for 56 days, etc.
Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
C:,4SSIF!CATION 1M0J IcT
CEIfRAL INTELLIGENCE AGENCY
INFORPI QED
FOREIGN DOCUMENTS OR RADIO BROADCASTS
COUNTRY U98R
SUBJECT Finance
HOW
PUBLISHED Pericdical
WHERE
PUBLISHED Dm
DATE
PUBLISHED AnCuct 1947
LANGUAGE Russian
or TI: 0111111 IT T" null ill AOIIAC ?
I. S. C., SI&J. ,l.MA5(ll11. ITS 446/11N01 01 TWO 11tlu4W1
(I 141 001111110 U A03 $011011 TO Al 2"7/111"0 $0111111 19 -lo-
511$. 101*111 TAB 1K111?LIe1Y?III ?SCAT or *311l /OIY 1A let?'11110[11
Y lilltF lillfllll Mt I.. 0?t1Yll/ "Asev.
REPORT
CD NO.
DATE DIST. 19 Oct 1948
NO. OF PAGES
SUPPLEMENT TO
THIS IS UNEVALUATED INFORMATION FOR THE RESEARCH
USE OF TRAINED INTELLIGENCE ANALYSTS
SOURCE IDENTIFICATION 611 lye Fy , vol VIII, No 8, August 1947.
?"AA'be -- Translation specifically requested.)
-STAT
 Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
I
R9 TRED
checked the reports received carelessly and with great delays.
Thus, during the first quarter of 1947 they were late in checking
The Beim base cf Giavpaz r (Main Administration of the Perftme,
Cosmetics, Synthetics, and Soap Industry), by presenting its February
report late, retained in its turnover 1,311+,000 rubles for'28 days, and
its August report retained 1,327,200 rubles for 5 days. Financial
agencies not cmly did net bother to enforce regulations for reports, but
25 percent, of the annual turnover-tax reports for 19446 and 41 per -
cent of the monthly reports for the first quarter'of 1947.
'reports by state revenue Inspectors Is the principal defect in the work
of 1 financial agencies.
additional turnover tax was late by frusa 20 to 110 days.
Superficial and, in mein came, Inaccurate checking of tax
of Negorno Soabakh Aut ous Oblast in checking the April 191+6
report of Zagotalcot (Cattle Procurement) of ice of this oblast, the
additional. (dope iebislennyy) turnover tax, aeatmting to 1'10,000
rubles, ems paid into the budget after a delay of over 5 months.
financial ogenciee of the Belorussian R.
Inepeotorc of the Finance Ministry of the USSR rechecked the reports
of sae eaaterpriaes, previously checked by state revenue Inspectors of
lower financial agencies. It appeared that for the Azerbeydzhen SSR,
for Instance, in 12 out of 18 reports checked, a total of 881,900
rablee of tax was to be added, ank for the Pelorusetan 88R, in 21 out
of 24 reports, a total of 2,530,000 rubles.
l}ospeetore of the Finance Ministry of the Aserbaydzhan 80, after
The work of financial agencies of the Azeerba dzham SSR and the
:9?1,aruseian GM was., audited in the f .rat and second quarter of 1947.
of tax for-319 of them by a total of 5,658,000 rubles, an& inspectors
of the Ministry of Piuance of the Belorussian M, for 57 reports out
A major reason for the poor quality oY the checking of reports in
In melay financial agencies Is the lank of practical inst w tion fsum the
checking.
. MV even wellquea11fled inspectors often forget that the checking
of tax "ports is the final stage in the w rk ci calculation of t> r
of 105,incraased the taz by 8,087,000 rubies.
Merry young state ravemee i spectors with insufficient experience
use pa*I dtive ant usvpI4 Incorrect methods of checking, often waste
considerable time obeckIng documents having no connection with the
calculation oat payment of taxes, aid lose sight of the principal
on the tsolmiquee of checking.
RESTRICTED
STAT
Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
 Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
l
RESTRICTED
ana its addenda have been signed by the director and the chief aaocaun-
ant.
a
on the nontaxable turnover is added to the report, ant whether the report
the established forms for the report have been observed; whether
data have been entered as to which enterprise has presented the report
ffi for which month of the year; whether or not detailed information
Inprelininaery checking the inspector aunt first of all note whether
y p
performed by state revenue inspectors. This checking not be performed
not later than the day following thereceapt of a report from or
enterprise, before its transmission to the State ~evenue Accounting
Section.
different branches of econorgy, for different enterprisos, aril even for
different groups of puroaucta, juvoli-de recur, irlction of a nethoai of.
report checking equally acceptable, with no exceptions, for all
enteitses. Thairefc:o, lot us consider methods of checking monthly
reports for the majority of organizations for which there is no ccmun
system for ta~ payments.
The process of checking tax reports from economic agencies to
divided into two stages, the preliminary and the final.
reliminary' checking is ,understood the checking of accounts
B
Pint of all, it in necessary to point out that the completty of
the system and the opoolal regulations of the turnover tax .or ;1c
It sans.
decia9ee an tau aiffiu~ent gr?blez7e which may arise during the ~liminery -40-. Chn
or on a sepsrate sheet of paper under the following haabing: "As
a result or the preliminarY check of this report it is fount *aeoesear7
to make the following cor'rectiona:"
tin+ea diri'icu It for th State revenue inspoc ..or to
of the prel'lmimry checking are to be noted at the end of the report,
complete reelxmaitility:
in data, etc.,) because the report ie a document for the quai.it,Y of
which the director of the enterprise eat the chief accountant have
Yn the pr+eltninery chock the state revenue Suapsator neat make no
car ectieaes on. the report (crossing c+st of f3A,us 3.e Gr teat, wrri tang
g i total of the tax.
Finally the ttxnn7er side of the account to checkod for every
inter which does not require special explanations.
pe
tax rates (cO1n s 8) aal also the correctness of oalcnletiana of torn-
over tax (column 9). For this purpose the staterevonue inspector, after
ascertaining the correctness of tax retoa, must himeolfcal.culate the
o
o
e
of ool=n 6 (all the nontaxable turnover cacx" "A's
of c,-l=a 3,4, ant 5; whether the taxable turnover (column 7), which
reprecent the difference between the data of eolwmr 2, and column 6,
in ahrim oorreatly; whether for the given taxpayer, the nontaxable
goods are properly classified in accordance with current regul.ationa.
o4a1 attention is to to paid to chocking the correctness of
S
(column 2) affi with the totals by different kinds of goods or categories
of goods. In particular, it is necessary to chock whether 1.h+ total.
ll
th
t
t
next, it is necessary to chock that the list of god or categories
subjected to different tax rates is complete _a Ld accurate. After this,
STAT
Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
 Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
I
RESTRICTED
V o fins.]. eheck?ng of turnover-tax reports is the docruontary check,
poriornod directly a:.: the enterprise with borkkoep1n_ materials and
ordinal dr:co nentc on. ha-A.
This check is performed by the inspector not later than ow month
after receiving the report. In order to organize this work veil, at the
beginning of the norli a schedule of report checks is ostablished for all
enterprises attached to each state revenue inspector. It sate in advance
the datoo for checking oacb. enterprise. The schedule is approved by the
director of the financial agency, who is responsible for the control of
the carrying out of the schedule.
before starting the dooumentarry Chock the state revenue inspector
must mains preparations for it. Be must make up a list of questions to be
cleared up on the spot, in the enterprise; he must obtain from the state
revenue accountant an extract from the individual account of the enter-
prise as. to the status of its accounts with the budget as of the latest
date, as to failures of the enterprise to observe tins limits for the
po nent of taxes, and as to fines imposed for these failures for the Month
elapsed.
The inspector, upon arrival at the enterprise, must first int'oa
its director of the matters to be checked. The latter must instruct the
accounting service to present to the inspector the bookkeeping materials
and to original documents for checking. From the director of the enter-
prise the inspector obtains information on the new kinds of products nude
by the enterprise, and on all other modifications in the established list
of ma,aifactured goods.
The checking of bookk+eopiog materials eat original documents must
always be performed in the presence and with direct participation of the
chief accountant of the enterprise or his assistant. They must provide the
inspector with explanations for all questions that may arise during the
checking.
]h order to accomplish a better documentary check of the report and,
save time we recommend the following order for the examination of the
account books and original documents.
The checking must start with the exrmination of the turnover balance
(b.uotno-sal'dovoy balans) for the month reported on. Fran this balance
the inspector ez'.reots the turnover data from the accounts for realization
of goads (the credit aide of each "realization" account).
feoaization" (renlizatslya) is the conversion of goads into cash or
credit, b sale consumption within too enterprise, or deliver; (otpask:
"release") to other ecancmio agencies, as iffiicated belou
7
In state and cooperative enterprises, vhioh in the majority of cases
are the payers of turnover tax, the accounts of the balance (sohota balanoa
dealing with realization are des'.4atcd as follows:
1. Realization of production of the enterprise outside the irdnstry
2. Realization of production of the enterprise in capital constrncticn
3. Realization of produoVwn of the enterprise in communal housing
arl in other needs of the enterprise not connected with production
4? D+ilivery of p cdncts of the enterprise to &aavk (main administration)
of a given rx+inob of the economly
Realization of camzaditias f..r mass concun;tion arrived from waste
products +
4-
RR9II2TCT'&i
RESTRICTED
STAT
Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
 Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
f
RESTRICTED
6. Realization of products by public dining-room enterprises
7. Realization of goods by rotail entorprrises
8. Realization of materials, pecking ./literally, tare_7, and
other items of material valve
9. Release of products by delivery to enterprises of the same
The state revenue inspector must care the data on the turnover
by realization of goods, obtained from the turnover balance, with the
data of the tinnover records (oborotn3yo vedomuosti) of the corzesporting
balmxo account. if there are no discrepancies the inspector proceeds
to chops the turnover record, comparing it vitli the analytic accounting
cards, the totale of which are entered in the corresponding turnover
records.
Ater making sure that the data examined, recorded in the turnover
reoorde, checks coMletely, the inspector may proceed to the selective
ohm of original documents (booklmaaping entries ) recorded on the
analytic accounting cards.
In this case it is first nnroscary to ;.hook by the 4XIginal
docmnnte those booklmopiag entries recorded on analytic accounting
cars which classify turnover as not subject to tax in this ;particular
enterprise because exempt from tax; or because the tax is levied on
the purchaser. This to necessary so that the inspector can ascertain
that ew*tion of such turnover is correct.
'Mon it is necessary to aback the original documents with the
bookkeeping entries recorded on the analytic accounting cards on which
the account for the taxable turnover to kept, in order to establish
that the various entries are ^.orrect. were it is reoeasary to kasp in
mit that for each kint or category of goods subject to a different tax
rats, an account on a separate card must be opened.
The state revenue inspector oaeot limit hiiaaxf to the checking of
the correctness of entries on analytic accounting cards dealing only
with mi?t "? turnover-tax rates. The checking of the oozrectneee of
entries mist be perforund for those dealing with wx1m i turnover-tam
rates an von.
An w0 know, all the goola of an enterprise's own production or
procuueme.it real_'zed outside the iaiuat:y, m olading by sale to the
vorleora and employees of the enterprise, as well as goods for its own
capitol eonstxcctien, for the communel eeonony, we for the public
bluing-X008 enterprises rai other enterprises nor oc>noeotited with
production, must be entered in account of tth2 balance dealing with the
realization or the release (atpuak) of goods.
RESTRICTED
STAT
Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
 Sanitized Copy Approved for Release 2011/0/6/29: CIA-RDP80-00809A000600200332-2
RESTRICTED
However, in practice it happens that this regulation is violated by
individual ent ises. There are oases when the realization or release
of sop^--ato iota of goals aro not ahovn in the accounts of thy. brlgnco
dealing with realization, but are concealed by writing off the goody
from the accounts of the balance for the finished goods amd transferring
them to the accounts for settlements, iith debtors and oreditora,, with
persons accountable for expenditures, and with workers ant employees, or
simplq tbrm& cash transactions (potty "realization "and releases of
mss)
In order to ensure the levy of a turnover tax on all goods realized
or released but for soma reason not entered in the account of
realization, the state revenue inspector must check those operations and
bookkeeping entries by which the accounts for finished products
may be made to correspond with the accounts of the balance showing the
settlement of accounts. If deliberate concealment of taxable turnover
with the purpose of tax evasion is discovered, it is necessary to
draw up a separate document for the prosecution: of tho guilty parties.
In such cases the turnover tax is exacted under cat bliehed xagulationa.
In the process of the documentary checking of the tax report it is
necessary to check the condition of the accounts of the balance for
"account settlements with the budget for the turnover tax," because
data given by this account often do not coincide with the turnover-tat
-reports presented by the enterprise to the financial agency.
lifter completion of the documentary checking of a tax report the
state rovemus inspector prepares a statement (nkt) of inspection. In
this document, besides accounting data pertaining to the oalouletien
of turnover tax, ant the aonolusions relating thereto, it. Is necessary
to include a statement as to low the plan of psoduotim and of realization
of goods has been performed; furthermore,.. It is necessary to describe
the state of goods left an band as compared w:L+,b the standard; to
shoe the szuotuat of embezzL3rento and thefts; to point out, Ix xr cessu ry
oases of mismanagement in storage or realization of goods; to record
whether the bills forunloadel gods are drawn in time and whether they
are presented for payment to the Coebank; to show the state of iniebtednecs,
ani the meausren undertaken for its liquidation; to show how the e: or.
prise mete its obligations to the state budget; end to determine the
quality cd' preparation and punctuality of presentation of turnover-tax
reports to the financial agoncy (the+ correctness of the setting of prices
and turnover-tax rates, and of the determination of the taxi+ble and ,
nontamble turnover; the mistakes sad errors in the calculation of the
tax; the delays in the presentation of the report, eta.).
The stag revenue inspector must sake suggestions for the elimination
orf,the shortages and W cticna discovered.
The otatenent anti a copy oi' It are eigned by the state revenue
Inspector and by t lixeotor and tbs chief accountant of the on~erprtce
One copy is transmitted to the enterprise :and signed for by its chief
accountant; the other is delivered, the uamr day or not later than the
next day, to the director of the firm ?a] agency or to the senior state
.,;
revenue Inspector, for examination and transmittal totlye accounting
department of state Revenue and entry of the appropriate records in the
In2Ividual account of the paying enterprise.
In every case when the statement of inspection coutaino data shoving
faulty operations, or evidence of important infractions of existing
regulations for the calculation and payment of the turnover tax,
RESTRICTED
STAT
Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
 Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2
the financial agency is obllge& to notify Its superior economic agency,
in order that msasu=es may be taken for the improvement of the work of
the enterprise. When necessary the financial agency reports the results
of the inspection to the local supervising organization, for an Innediate
elimination of the infractions disclosed.
On checking the turnover-tax report for the next month, the Inspector
must check how the enterprise carried out the suggestions made at the
time of the previous checking.
Such are, haaioally, the principles of checking the turner-tax
reports of enterprises. movement In the quality of the turnover-
tax reports will greatly depend on how widely the financial agencies
arranGo for the sharing of experience in this most important work.
The _ asocial agenoida of the republic, the kray, the obl-e6t,
or the city must disseminate as vilely as possible the experience
acquired by the best state revennc inspectors for checking the turnover-
tax reports, and by means of concrete exsmpleo raise the level of
practical knowledge of the young state revenue inspectors.
Sanitized Copy Approved for Release 2011/06/29: CIA-RDP80-00809A000600200332-2