Tax policy on the background of accounting problems

Abstract

The article considers the problem of imperfection and inconsistency of tax and accounting policies. It is emphasized that the lack of balance of the former has led to the same flaw in the latter, resulting in duplication of accounting procedures, documentation of primary and analytical accounting, confusion in synthetic accounting, and ignoring its economic boundaries in general. At the same time, their names were incorrect, because the latter is actually a component of the former. Therefore, renaming accounting/reporting to financial/ financial cannot be considered methodologically sound. And worse, everyone has forgotten about the inadmissibility of ignoring its economic boundaries in accounting, due to the duplication of primary documentation and the introduction of fictitious accounts, the names of which are also a vivid example of methodological and methodological confusion. This determines the importance of scientific comprehension of the problem of consistency of tax policy with its balanced accounting support in accordance with the classical methodological and methodological postulates. Attention is drawn to the fact that the prevalence of the fiscal approach over the methodology and methods of accounting has led to the introduction of fictitious accounts, the names of which are a vivid example of methodological and methodological confusion and the substitution of declared net balances with gross balances. It is proposed to abandon the anti-methodological use of dual – cash and accrual - methods of income recognition in determining tax liabilities and VAT tax credit, which led to the emergence of fictitious sub-accounts 643 «Tax Liabilities» and 644 «Tax Credit», the essence of which is distorted, therefore leading to the emergence of fictitious assets and liabilities. First and foremost, this diversity should be eliminated by duplication of primary accounting documentation and separation of accounting transactions into the first and second events, and by abandoning the use of two methods of income recognition – cash and accrual – in determining tax liabilities and VAT tax credit: the precedent of «gross income» and «gross expenses» proves that this is not beyond the realm of possibility.