Disadvantages and gaps in the legal regulation of the financial activities of the united territorial communities and ways to improve them

Abstract

This article addresses the legal issues of securing revenue for the budgets of the united territorial communities. Legal acts governing their financial activities have been clarified. The norms of the Budget Code of Ukraine on financial support of activities of the united territorial communities, distribution of intergovernmental transfers, obtaining of loans, expansion of the list of financial revenues are analyzed. It is proved that the Tax Code of Ukraine occupies a significant place in the normative provision of financial activity of communities, since it establishes the types of local taxes and fees and the procedure for their penalty. It has been determined that the amount of financial revenues in the revenue side of the budgets of the united territorial communities has been increased by the introduction of a simplified single tax system. The gaps and shortcomings of the current legislation on the legal provision of the revenue part of the budgets of the united territorial communities, which are connected, firstly, with the separation of powers of the executive and local self-government bodies regarding the formation, distribution and use of local finances, and with uncertainty over the powers of officials of executive bodies of local councils responsible for financial activities. It is proved that the implementation of actions aimed at creating a strong financial and economic base of local self-government by: improving the legislative framework for the formation and collection of local taxes and fees; creating preferential conditions for local taxation to stimulate business activity in the region optimization of the tax burden on the leading local industries, taking into account the balance of the local budget; improving the fiscal efficiency of mandatory payments by improving the administration system; optimization of tax benefits; organization of tax control and reduction of tax offenses and crimes, including tax evasion; work on improving the legal culture of the population regarding the movement of local finances.