Abstract
The issue of taxation of advocacy is undergoing a new stage of discussion and debate. Today, the taxation of a lawyer’s income depends on whether the lawyer works individually, as a self-employed person, or as an employee under an employment contract in a law office or association.Working independently, a lawyer pays tax and other mandatory payments in the total amount of about 42% (personal income tax 18%, military levy 1.5%, single social contribution 22%), while persons who are on the simplified system taxation, pay a single tax (for example 5%) and a social contribution.Laws (bill) No. 2200, No. 2200-1, which provide for the right of lawyers, as self-employed persons, to be on the simplified taxation system for the main type of their activity (activity in the field of law) introduce novelty in this matter.The issue of the lawyer’s right to choose the taxation system, in particular, the simplified taxation system, which is applied to individual entrepreneurs, remains debatable in the context of guarantees of the stability and independence of the lawyer’s activity, provided for by the interests of the state and the lawyer. The importance of transparency of tax relations and the validity of simplifying state control over tax assessment and payment are discussed.At the theoretical level, the effectiveness and efficiency of tax payment and the increase of budget revenues from advocacy activities in the case of the legislative granting of the right to a simplified taxation system to an attorney are ascertained. It is indicated that such an approach corresponds to the principle of fairness and impartiality to the lawyer’s activity in terms of its taxation.The article reveals the problem of discrimination of self-employed persons and entrepreneurs in the field of taxation. The material presents an analysis of draft laws and their rationale. Tendencies to changes in the legal regulation of tax relations of self-employed persons are outlined. A comparison of the features of advocacy and entrepreneurial activity was carried out. Attention is focused on the issue of taxation of the lawyer’s income. The regulatory and legal regulation of tax collection from advocacy activities is characterized. The judicial practice and legal positions of the Supreme Court have been elaborated and their influence on the formation of the object of taxation from advocacy activities has been outlined. Arguments were searched for the need to legislate for the lawyer the right to choose between the general and simplified taxation systems. The conclusion is made about the need to regulate the lawyer’s right to choose the taxation system, which is a constituent element of guaranteeing the lawyer’s independence.
Published Version
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