Tax Benefits in the Taxation of Individuals’ Property

Abstract

The article examines the economic content of tax benefits, their classification and application. Benefits have been established for the property tax of individuals, as well as for other taxes. Tax benefits include both full and partial tax exemption. The definition of the concept of "tax benefit" is given in Article 56 of the Tax Code of the Russian Federation. The definition states that the benefit provides certain categories of taxpayers and payers with certain advantages in comparison with other tax payers. Exemptions are attributed to tax benefits according to the Code. The exceptions allow to reduce the tax base and the amount of tax to all taxpayers. They are not an advantage for certain categories of taxpayers. In this case, the reduction of the tax base for calculating the property tax of individuals on the cadastral value of the established number of square meters of taxable objects cannot be attributed to tax benefits. It is almost impossible to assess the effectiveness of tax benefits for the property tax of individuals. These tax benefits are of social importance and are not aimed at increasing production or investment. The provision of benefits leads to budget expenditures. The article analyzes the budget expenditures for the provision of benefits for the property tax of individuals in the Irkutsk region. It is noted that the amount of the benefit depends on the cadastral value of the object, which is not entirely fair. The Russian tax legislation establishes a large number of benefits of various types. Monitoring the correctness of the application of benefits leads to additional costs for both the state and taxpayers. In the budget legislation, tax benefits are considered as budget expenditures. In this regard, it is most fair to provide benefits as subsidies to certain categories of taxpayers and approve them as budget expenditures.