Abstract
Under current circumstances, the imperfect conditions of economic activity, which are formed in the country, have a significant influence on the macroeconomic situation. As a result, the economically unreasonable tax legislation, aimed at instantaneous replenishment of the budget, leads to an excessive tax burden on the real sector of the economy and the formation of its shadow segment. The use of shadow transactions to conceal the tax revenue is a manifestation of deeper processes of redistribution of the gross domestic product in favour of the shadow economy and requires active measures aimed at improving the tax system.The main objective of the article is to consider a way to improve the existing fiscal mechanism by identifying the main reasons for the implementation of shadow operations and the transmission features, as well as to determine the directions of increasing the influence of the fiscal mechanism on reducing the shadow sector of the economy.The article reveals the influence of the fiscal mechanism on the unshadowing of the economy through the formation of a fiscal transmission in the Ukrainian economy as a process of successive transfer of impulses of the fiscal policy of the state, reflecting the relationship between tax instruments and business activity in the real sector.The main channels of fiscal transmission are five types of taxes that are defined by the Tax Code of Ukraine: corporate profit tax, income tax, value added tax, excise tax and duty. Each tax becomes a transmission channel of the fiscal impulse in the process of determining its main components and due to their transmission; a positive effect of unshadowing in the short run is achieved. However, to do this, support for the fiscal impulse should be ensured through changes in related areas of activity and the efficient management of taxation, which includes monitoring of the indicators of the taxpayers activities, performance by the fiscal authorities explanatory work of the tax legislation and introducing an effective tax administration system.Article received 01.05.2018
Highlights
Introduction and Research ProblemThe state budget is the most important link in the financial system, which at the expense of the redistribution of GDP ensures the implementation of the state’s economic and social policies, as well as supports socio-economic stability and an adequate standard of living for the population
In the process of fiscal transmission, impulses from the State Fiscal Service of Ukraine are transmitted through specific channels, using certain instruments to the real economy, and promote the stimulation or slowdown of business activity of business entities, the openness of their activities or the formation of shadow schemes, which leads to a change in the volume of revenues in budgets of all levels and macroeconomic indicators, and, affects the level of economic development of the country
The current economy of the country is characterized by a number of features that need to be taken into account when considering the impact of the fiscal mechanism on the unshadowing of the economy
Summary
The imperfect conditions of economic activity, which are formed in the country, have a significant influence on the macroeconomic situation. In the context of the need to restore the country’s economy after a long recession, special attention is paid to using such financial mechanisms that create powerful impulses that have a positive effect on the development of the real economy in the short-term and provide for the shadow economy and macroeconomic stability One of these mechanisms is the fiscal mechanism for the regulation of incomes and expenditures of the state, the functioning of which may be directed at preventing inflation, reducing unemployment, smoothing out the cyclical fluctuations of the economy, withdrawing the economy from the shadow, and increasing GDP. In the process of fiscal transmission, impulses from the State Fiscal Service of Ukraine are transmitted through specific channels, using certain instruments to the real economy, and promote the stimulation or slowdown of business activity of business entities, the openness of their activities or the formation of shadow schemes, which leads to a change in the volume of revenues in budgets of all levels and macroeconomic indicators, and, affects the level of economic development of the country. The transmission mechanism reflects the relationship between fiscal policy and macroeconomic indicators, and makes it possible to identify the most effective levers of the tax system’s impact on business activity and the unshadowing of the real sector
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