De-Shadowization of Tax Gaps in the System-Compositional Models of State Fiscal Policy: Comparative Analysis of EU Countries and Ukraine

Natalia Trusova,Oksana Hryvkivska,Iryna Lobacheva,Olena Kudyrko,Svitlana Skrypnyk,Nataliia Polishchuk

doi:10.5755/j01.ppaa.20.3.28595

Abstract

The purpose of the article is to consider the empirical calculations of the level of de-shadowization of tax gaps in the system-compositional model of the fiscal policy of the state. The methodological approach to cointegration of the level of de-shadowization of tax gaps into the system-compositional model of fiscal policy is substantiated, taking into account the strategic determinants of financial and economic development of the state. The method of calculation of the integrated indicator of strategic alternatives is presented and represents the configuration of the modified system of fiscal innovations in relation to the taxation of economic entities. A methodical approach to estimating the level of de-shadowization of the tax gap on the income tax of economic entities is proposed. The level of unit testing of variables of de-shadowization of tax gaps from indicators of financial and economic development of the EU and Ukraine is analyzed. It is concluded that one of the most influential factors today is the de-shadowization of the economy. The future directions are the research of the ways to improve Ukraine’s fiscal policy.

Highlights

The current economic system distorts the economy and entrepreneurial activity, and leads to the transition of market structures in the shadow sector, reducing the quality and efficiencyNatalia V
The priority of our study is to develop a new methodological approach to the integration of the level of de-shadowization of tax gaps in the system-compositional model of fiscal policy, taking into account the strategic determinants of the financial and economic development of the state
Each fiscal instrument is supposed to achieve a super-additive effect on the state economy, which is mutually consistent in the budget and tax sphere through: 1) tax regulation, which ensures the effectiveness of existing means of tax incentives for the economy; 2) budget regulation, which improves the principles of budget formation and restrictions on the expansion of state budget expenditures

Summary

Introduction

The current economic system distorts the economy and entrepreneurial activity, and leads to the transition of market structures in the shadow sector, reducing the quality and efficiencyNatalia V. It should be noted that shadow activity exists in all countries and threatens the stability of such fundamental institutions as the legal and fiscal systems The latter is beginning to counteract the various forms and directions of the shadow sector of the economy, forming a single and stable system. At the same time, unregulated fiscal policy, when changing the strategy of macroeconomic development and transformation of economic and legal relations, increases the influence of external factors on the shadowing of the national economy. This leads to ineffective government policies for the development of socioeconomic determinants and the management of tax gaps (Dunets et al, 2019; Ivanishina and Hirna, 2018)

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