Abstract
The current global financial market is witnessing the activation of cryptocurrency as a payment instrument and a means of accumulation. However, the risks of money laundering, terrorism financing and tax evasion that cryptocurrency transactions imply lead to the need to implement their state regulation, an important component of which is tax control.Therefore, the purpose of the article is to substantiate the value orientations when forming the system of cryptocurrency transactions tax control in Ukraine taking the positive experience of developed countries into account. The scientific results of the study consist in the emphasizing structural, functional, systemic and institutional approaches to understanding tax control, which became the basis for identifying the features of cryptocurrency transactions as a tax control object.It was revealed that the lack of personalization of the agreement parties, the relatively high level of information security, free international turnover and a decentralized payment system are the factors of the cryptocurrency market further development. On the other hand, this leads to the loss of tax revenues for Ukrainian budgetary system, taking into account the forecasted trends in the development of the cryptocurrency market by 2022 through methods of sums, least squares and expert estimates. Given the institutional approach to the understanding of tax control, an institutional structure of the cryptocurrency transactions tax control in Ukraine is proposed.It is established that domestic state institutions are able to carry out tax control over these transactions. It is also determined that introducing fiscal control will result in the receipt of additional revenues by budgets, reduction of shadow economy, counteraction to cybercrime and terrorism financing.The practical importance of the results is in the need to form an effective system of cryptocurrency transactions tax control as a function of public administration.It has been determined that transactions on cryptocurrency supply, on the determining exchange rates and transactions on cryptocurrency disposal should be an object of tax control in Ukraine. Mining transactions, receipt of income (profits) in the cryptocurrency are subject to general taxes, depending on the taxpayer’s legal status, in particular, personal income tax, corporate income tax and a unified social tax (UST). Taking into account the EU recommendations on the non-application of value added tax in the cryptocurrency transactions taxation, it is not appropriate to implement it in this area. Establishing tax control over cryptocurrency transactions will expand the powers of state authorities that are empowered to control observing financial discipline by economic agents in Ukraine and the financial capabilities of state and local budgets.
Highlights
Under the international trade intensification, cross-border capital movements and the information technology development, a gradual transformation of financial systems towards the use of electronic money is taking place
The Blockchain 1.0 technology, which was incorporated in Bitcoin, was upgraded to 2.0 version, resulting in the emergence of a new digital currency, Ethereum, whose principle of operation lies in the functioning of “smart contracts”, The formation of the cryptocurrency market took excluding the impact of the human factor on the place in 2008
As a result of the research conducted, it was found necessary and expedient to implement tax control of cryptocurrency transactions on the basis of the preliminary determination of the cryptocurrency legal status, which would help prevent the use of cryptocurrency in terrorist financing, money laundering, tax evasion and ensure the filling of the revenues of the state and local budgets of Ukraine and other countries
Summary
Under the international trade intensification, cross-border capital movements and the information technology development, a gradual transformation of financial systems towards the use of electronic money is taking place. The world financial market is witnessing the circulation of cryptocurrency as a payment instrument and accumulation means, which is due to the benefits for financial services consumers and a decrease in confidence to state institutions and, in particular, to traditional financial intermediaries. The cryptocurrency development makes an innovative foundation for the transforming financial services market, creating new opportunities for investment, lending, insurance, payments and money transfer. The mechanism for the cryptocurrency transactions includes the risks of money laundering, terrorist financing and tax evasion. This necessitates their state regulation, an important component of which is tax control, which has recently been intensified in developed countries. Shaping the system of cryptocurrency transactions tax control and defining its objects and subjects will provide institutional modernization of the domestic tax system, increase the possibilities of the state and local self-government bodies to finance social and economic programs through additional tax revenues and working against negative phenomena such as shadow economy and cybercrime
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