The economic basis of a tax: the concept and the principle

Abstract

The subject. The article investigates the legal content of the concept of the economic basis of a tax and the relevant principle. The reason for choosing this subject of investigation lies in the emerging practice of how the statutory principle applies which is set out in article 3(3) of the Russian Tax Code, according to which taxes and levies should have an economic basis. Purpose of the study. The article analyses the existing ideas about the economic basis of taxes, proposes and substantiates the legal definition of the concept, specifies the types of taxable economic benefit and discloses the content of the principle of the economic grounds of a tax.Methodology. The methodological framework comprises a systemic analysis of the provisions of Russian tax legislation, studying the practice of courts and administrative bodies, higher courts and opinions of experts, the historical background and the interrelation between the economic and legal aspects of taxation.Conclusions. The economic basis of a tax should be understood to mean gaining an economic benefit to which tax legislation pegs the emergence of the obligation to pay the tax. Economic benefit should be understood as a positive economic outcome. The article delves into the types of economic benefit, which includes the following: added value, profit, net profit and natural resource royalty. To impose a specific tax, the principle of economic basis of a tax means an imperative requirement for the taxpayer to have relevant economic benefit.