Customer Payment Research Articles

An integrated approach using discrete event simulation and design of experiments for working capital management in the fuel retail trade

ABSTRACT This study introduces an innovative approach to Working Capital Management (WCM) in the fuel retail sector, using Discrete Event Simulation (DES) and Design of Experiments (DOE). Efficient WCM is essential for small businesses, particularly in fuel retailing with its tight margins and intense competition. Unlike static financial tools relying on historical data, DES interacts with indicators such as Working Capital Requirement (WCR) and Liquidity Ratios, providing stochastic and accurate information. The study examined three variables (Supplier Payment Deadline, Credit Card Receipt Deadline, and Customer Payment Profile) across 16 experimental scenarios. The Payment Term to Suppliers emerged as the key factor in reducing WCR. Despite lower liquidity potential, the company balanced short-term obligations, identifying optimal WCM scenarios. The study shifts WCM analysis from static data to forecasted, real-time data, supporting dynamic business decision-making. It concludes that DES is a valuable tool for effective WCM in fuel retail, encouraging further research.

Економіко-правова сутність митної політики: макро- та мікро- аспект

In the context of martial law and the implementation of international customs law norms and procedures in the domestic economic space, the requirements for customs and business operations efficiency of foreign economic operators are becoming more stringent. The issues of the customs policy of an enterprise, as such, which ensures the systematization of organizational, economic and managerial processes and operations to ensure the effective implementation of foreign economic activity, are becoming increasingly important. Based on a study of scientific publications covering customs policy, the author proves that there is no systematic approach to its identification at the micro level, i.e., at the level of enterprises. The author emphasizes the need for clear regulation of foreign economic activity operations at enterprises. It is proved that the absence of a systematic approach to determining the customs policy of enterprises does not fully ensure the achievement of efficiency of foreign economic activity. The author proposes to consider the customs policy of an enterprise as a set of methodological approaches, standards and mechanisms that ensure effective management of business processes related to customs clearance of goods, compliance with customs legislation and optimization of customs payments. The economic and legal principles of interaction between customs policy at the macro and micro levels are revealed, where the State establishes general rules and regulations, and enterprises adapt their activities in accordance with these requirements. It is proposed to include economic (financial management, customs logistics, customs payments, organization of customs procedures) and legal (risk management, legal regulation, information and legal support, partnership with customs brokers, administration) parameters in the elements of the enterprise’s customs policy, each of which will affect the efficiency of foreign economic activity management. It is argued that the introduction of a comprehensive customs policy of an enterprise will help to increase its competitiveness in international markets and ensure the effective functioning of foreign economic activity. Prospects for further scientific research are determined in the plane of applied projection of the proposed provisions for the formation of customs policy to ensure the development of foreign economic activity of domestic enterprises. Keywords: customs policy, elements of customs policy, foreign economic activity, customs payments, financial management, administration, legal regulation.

Statistical analysis of the efficiency of customs warehouses use when applying customs regimes during the period of martial law in Ukraine

The article is devoted to the comparative characteristics of the organization of storage of goods in customs warehouses under the «customs warehouse» regime. A general scientific method of comparison was used to identify disparities between the volumes of customs payment receipts in the regional section by individual customs offices. An algorithm for determining the maximum term of storage of goods in a customs warehouse depending on the applied customs regime has been built. The grouping of customs offices by the area of customs warehouses in terms of their types was carried out on the basis of the register of enterprises that were granted permission to open and operate customs warehouses for 2022–2023. The possible options for placement of goods in the current customs warehouses at the customs of Ukraine are given, which allowed establishing the specialization of customs by types of customs warehouses. A statistical analysis of the structure and dynamics of customs payments by customs in 2021 and 2022 was carried out, which made it possible to determine the most effective and ineffective customs in terms of revenue to the State Budget of Ukraine. The comparative characteristics of the normative regulation of the order of organization of storage of goods in the customs warehouse under the conditions of the «customs warehouse» regime and other customs regimes in accordance with the Customs Code of Ukraine are given. It was put forward to test the hypothesis that one of the important factors affecting the receipt of customs payments to the State Budget of Ukraine is the area of customs warehouses. The coefficient of determination was applied as a method of correlation-regression analysis, which confirmed the existence of a significant relationship between the area of customs warehouses and expected customs payments to the State Budget of Ukraine. It has been established that among the factors affecting the receipt of customs payments, 38 percent is accounted for by the area of customs warehouses, and 62 percent by other factors.

The fiscal function of the customs authorities of Ukraine in the conditions of the legal regime of martial state: analysis of the problems in the context of the decisions of the higher government bodies

The article analyzes the problems of implementation of the fiscal function by Ukrainian customs authorities during the legal regime of martial law in the context of the decisions of higher state authorities. The significance of the fiscal function of the customs authorities of Ukraine for filling the revenue part of the State Budget of Ukraine in the pre-war period and after the beginning of the full-scale invasion of the russian troops on the territory of Ukraine was researched. The approach to reforming the customs authorities of Ukraine based on the priority of the fiscal function is critically evaluated. The necessity of using modern trends in the organization and functioning of customs administrations in the developed countries of the world during reforms of the Ukrainian customs authorities is indicated, which primarily consist in changing approaches to understanding the activities of customs authorities of Ukraine not only as fiscal, but also as protective and regulatory. In the course of the analysis of the normative legal acts of the government and the parliament, adopted with the aim of stabilizing the situation in the economy of Ukraine after the beginning of the full-scale invasion of the russian troops on the territory of Ukraine, a number of shortcomings of the rule-making activities of these higher state authorities were revealed, which led to the failure of the state budget to receive significant amounts of customs payments. Based on the study of the norms of acts of the Verkhovna Rada of Ukraine and the Cabinet of Ministers of Ukraine, changes to the relevant normative legal acts were proposed, which could improve the state of implementation of the fiscal function of the customs authorities of Ukraine in the first weeks after the introduction of martial law on the territory of Ukraine. It has been established the need to involve employees of specialized units of the State Customs Service of Ukraine in the development of normative legal acts that affect the implementation of the fiscal function by the customs authorities of Ukraine. It is indicated the basic directions of improvement of the regulatory and legal regulation of the activity of the customs in the implementation of their fiscal function.

Перспективы развития системы уплаты налогов посредством единого налогового счета и единого фискального счета в России

The general and specific features of a single tax account, a single tax payment, and advance customs payments are considered. The legal relations arising when using a single tax account and advance customs payment are analyzed. A conclusion is made about the feasibility of introducing a single fiscal account.

Tax audits of customs payments

Tax audits of customs payments

Dynamics and structure of customs payments in the Kyrgyz Republic

The article analyzes customs payments as a significant source of formation of the revenue side of the state budget of the Kyrgyz Republic and tax revenues. A detailed analysis of the dynamics and structure of customs duties was carried out.

Роль и значение экономического анализа в системе инструментариев таможенного аудита

The relevance of the research topic is due to the need to improve analytical support and decision support systems in the field of customs control through the development of a customs audit system. The problem is the absence today of separate analytical tools for assessing the activities of enterprises participating in foreign trade activities for violations of customs legislation in the field of customs payments. The purpose of the study is to identify the features and directions of development of customs audit, including through the optimization of analytical procedures in relation to monitoring the correctness of payment of customs duties by business entities. Research methods: monographic, tabular. Results and key conclusions: the relevance of the development of customs audit based on the symbiosis of audit and revision has been proven, with justification for the role and significance of economic analysis in the system of its tools. The object of the study is the theoretical and practical aspects of conducting audits and audits in relation to participants in foreign trade activities, the subject is the process of conducting analytical procedures in relation to enterprises participating in foreign trade activities. The theoretical and methodological significance lies in the fact that the essence of the economic analysis of customs payments in various territorial segments is revealed, allowing the use of its tools when conducting a customs audit. The results of the work have practical significance for decision-making by the management of customs authorities to manage the customs audit process as part of control after the release of goods.

Administrative responsibility for violation of customs rules during the movement of goods by natural persons across the customs border of Ukraine: reasons and signs

The article is devoted to the disclosure of the features of administrative responsibility in the movement of goods by natural persons across the customs border of Ukraine, its grounds and features. Attention is focused on the categories: «offence», «customs offence», «natural person», «resident», «non-resident», «customs rules», «administrative responsibility», «violation of customs rules», «administrative responsibility for violation of customs rules». It was found that the violation of customs rules during the movement of goods by individuals across the customs border of Ukraine belongs to the category of administrative offenses and is a type of legal responsibility. It is suggested that the violation of customs rules in the case of movement of goods by individuals across the customs border of Ukraine should be understood as intentional or negligent action or inaction of an individual who interferes with the established procedure for movement of goods by them across the customs border of Ukraine, implementation of customs clearance procedures and customs control of such goods, or ( or) exemption or settlement of customs payments. It has been proven that the elements of violation of customs rules when moving goods by individuals across the customs border of Ukraine must include: a) object; b) the objective side; c) subject; d) the subjective side.
 The grounds for administrative liability for violation of customs rules during the movement of goods by natural persons across the customs border of Ukraine have been disclosed. A proper definition of administrative responsibility for violation of customs rules during the movement of goods by individuals across the customs border of Ukraine is proposed as a specific form of negative response of the state in the form of its authorized bodies (customs and judicial) to violations of customs rules during the movement of goods by individuals across the customs border, according to which physical persons who have committed such violations are subject to onerous consequences of a material or other nature for their illegal actions and provides for administrative fines for this in the order and form determined by the Customs Code of Ukraine. The signs of administrative responsibility for violation of customs rules during the movement of goods by individuals across the customs border of Ukraine have been clarified.

Separate legal aspects of movement of vehicles for personal use by natural persons across the customs border of Ukraine

The article is devoted to revealing the specifics of the practical and theoretical problems of moving vehicles for personal use by natural persons across the customs border of Ukraine, certain aspects of their customs control and customs clearance within the framework of customs regulation. Definitions of the categories "goods", "vehicles", "personal vehicles”, "commercial vehicles", "natural persons", "citizens", "personal use of a vehicle", "commercial" use of a vehicle" are defined. It was established that commercial vehicles are not goods according to the requirements of the Customs Code of Ukraine. The types of individual prohibitions when natural persons import vehicles for personal use into the customs territory of Ukraine have been clarified. It was established that customs clearance when citizens import vehicles for personal use into the customs territory of Ukraine is possible for the purpose of free circulation, and the first state registration of imported vehicles in Ukraine, new and those that were in use, or manufactured in Ukraine, is carried out on the condition that they comply with environmental standards not lower than the "EURO-2" level in accordance with technical regulations. The declaration form used by citizens to declare vehicles for free circulation has been clarified. It was revealed that in the case of citizens importing vehicles for personal use, which are imported into the customs territory of Ukraine and are subject to state registration, a customs declaration in the form of a single administrative document is provided for declaration. Features of the passage and movement of land vehicles for personal use across the customs border of Ukraine by natural persons who are not their owners are highlighted. The grounds and conditions for exemption from taxation with customs payments upon importation (forwarding) to the customs territory of Ukraine by natural persons of vehicles for personal use have been defined.

MONITORING THE PERFORMANCE AND EFFICIENCY OF CUSTOMS CONTROL IN UKRAINE

Topicality. Ukraine is integrating into the global economic space and is an active participant in regional cooperation. This requires the abolition of certain restrictions on the free movement of goods. Customs control has a special place in this process. Advanced forms and methods of customs control, as well as measures to increase their performance and efficiency, ensure timely detection, prevention, disclosure and termination of offenses, as well as additional receipt of customs payments to the budget with the gradual introduction of European customs norms into the practice of our state.Aim and tasks. To analyze the performance and efficiency of customs control in Ukraine in order to substantiate the vectors for their further improvement.Materials and methods. Legislative and normative documentation, statistical data of the State Customs Service of Ukraine, legislative acts of the state authorities of Ukraine were used in the research process. General scientific and special methods of scientific knowledge, methods of generalization, analysis and synthesis, observation, comparison, grouping are applied - in the study of the categorical and conceptual apparatus of customs control, assessment of the performance and efficiency of control measures in the customs sphere.Research results. The choice of forms and methods of customs control depends on the goals set by the customs authorities for the management of customs risks from the implementation of foreign economic activities. Customs control can be effective, but not effective, if resources disproportionate to the achieved effect were spent to achieve the goals. The analysis of the customs audit in Ukraine proved that the main violations of the customs legislation related to the illegal receipt of tax benefits, violation of the requirements of the rules for the classification of goods in accordance with the UCT of the Foreign Trade and unreliable declaration of the customs value of goods. Today, due to the state of war, the emphasis in the work has been shifted to the organization of explanatory work by the customs, the provision of consultations on the practical application of certain norms of legislation on customs matters, and the conduct of a campaign of voluntary payment to the budget of customs payments in connection with the established signs of violation of the customs legislation. In most foreign practices, the customs audit is carried out by conducting a post-audit. This results in speeding up customs formalities and simplifying customs procedures, maintaining a balance between promoting international trade and effective customs control. On the basis of the analysis of the efficiency of the work of regional customs, the problems of their functioning have been identified according to a number of indicators, which indicates the need to focus on these areas during customs control.Conclusion. Prospective directions for increasing the performance and efficiency of customs control in Ukraine are:- increasing the effectiveness of customs audit and post-customs control;- increasing the effectiveness of control over the legality of the application of exemptions from payment of customs payments and the use of goods for their final destination, which will contribute to the increase of customs payments to the State Budget;- introduction of European practices in the field of customs control in Ukraine by building modern, flexible, reliable, service-oriented information and communication systems.Single indicators of performance and efficiency of customs control, which will be coordinated with the customs legislation of the EU member states, are required for further development and publication. They should reflect not only the quantitative indicators of additional revenues of customs payments to the budget, but also indirectly take into account the quality of changes taking place in the customs administration, due to the growth of international trade volumes, the activation of foreign economic activity.

Prevention of corruption risks when performing customs procedures: types and concepts

The aim of the work is involves clarifying the theoretical and practical problems of preventing corruption risks in the implementation of customs procedures, the peculiarities of its definition of the essence and concept, and the selection of separate criteria for their classification within the limits of its customs and legal provision. The methodological basis of the study used a set of scientific research methods such as dialectical, formal-legal, systemic, hermeneutic, comparative-legal, empirical, etc. The content of individual categories “corruption”, “corruption risk”, “procedure”, “legal procedure”, “customs procedure”, “customs formalities” was clarified, the constituent elements of customs procedures were revealed. A proper definition of “corruption risk in the field of customs procedures” is proposed. It has been established that the customs procedure is a set of requirements that are determined by the implementation of customs control and customs clearance of goods and the peculiarity of paying taxes and customs payments, and the conditions of their implementation depend on a certain customs regime (that is, on the purpose, form and conditions of the movement of goods). It was determined that the institution of prevention of corruption risks in relation to violations of the established procedure for the implementation of customs procedures has its own specificity of legal support and is a separate subject of research in the science of customs law. It was found that the prevention of corruption risks in the implementation of customs procedures is a component of the prevention of corruption risks in the public administration of state customs affairs and is a separate part of the prevention of corruption in this area. It was concluded that the corruption risk in the field of customs procedures is legal, organizational and other factors and reasons that generate, encourage (stimulate) corruption in the implementation of customs control procedures, customs clearance procedures, as well as tax and customs payment procedures and their order implementation. According to the prevalence, it is proposed to highlight the following corruption risks in the implementation of customs procedures in the activities of customs officials, namely: dishonesty of customs officials, the occurrence of a conflict of interests among customs officials, lack of control by the management of customs authorities, the presence of discretionary powers of customs officials etc.

Determinants of Net Transactions in TARGET2 of European Banks Based on Micro-data

AbstractThis paper examines German and foreign bank factors that can explain net flows of cross-border central bank liquidity between Germany and the rest of the euro area. Using data from the German component of Eurosystem’s real-time gross settlement system TARGET2 and BankFocus for the period between 2009 and 2021, we provide empirical evidence that only few balance sheet items and profit and loss accounts affect net flows with Germany. We control for bilateral bank-specific relationships and time-varying macroeconomic country effects in our regressions. In general, German bank factors seem to be more important than characteristics of foreign banks. A German bank that exhibits relatively high claims against central banks seems to attract less additional central bank liquidity from abroad than a German bank with fewer existing central bank claims. Net claims against central banks, which also control for liabilities, have no effect on net transactions in TARGET2. However, higher overall liquidity of a German credit institution corresponds to additional net inflows. Foreign bank factors only matter for central bank payments and intragroup payments. We also document heterogeneities across different types of transactions which influence the German TARGET2 balance. While customer payments, interbank payments and central bank payments have increased net flows to Germany in sum, intragroup payments and ancillary systems’ transactions have led to net outflows.

Contibution of Sharia fintech to micro, small, and medium enterprises’ inclusivity in Kisaran City

IntroductionChallenges in access to inclusive financial services are still a major issue for many micro, small and medium enterprises in Indonesia, including in Kisaran City. However, research that specifically discusses this is still rarely carried out.ObjectivesThis research aims to analyze the role of sharia fintech in increasing the inclusiveness of micro, small and medium enterprises in Kisaran City.MethodThis research uses qualitative approach with primary data is obtained by interviewing three MSMEs owners using Sharia fintech. Secondary data is collected from books, the internet, academic journals, archives, and official records.ResultsThe results of this research show an increase in the use of Sharia Fintech by micro, small and medium enterprises in Kisaran City in 2020-2023. Apart from that, the use of Sharia fintech has a positive influence in increasing financial inclusiveness and encouraging the growth of micro, small and medium enterprises in Kisaran City..ImplicationsMicro, small and medium enterprises can use financial services from sharia fintech to increase access to funding and to expand customer payment models. Policy makers can continue to increase the role of sharia fintech for inclusiveness of micro, small and medium enterprises through more certain regulations and also increasing public education.Originality/NoveltyThis study contributes to enrich studies in the field of financial inclusion for micro, small, and medium enterprises with emphasize on the use of fintech.

Теоретические, правовые и информационно-технические аспекты деятельности таможенных органов по администрированию таможенных платежей

The article examines the theoretical, legal and informationtechnical aspects of the activities of customs authorities in the administration of customs payments. The dynamics and structure of revenues of the Federal budget of the Russian Federation administered by the customs authorities are analyzed and the factors influencing it are highlighted. Directions for improving the activities of customs authorities in the administration of customs payments are presented.

Social and legal conditionality of customs duties evasion criminal liability

The subject of this article is the socio-legal conditionality of establishing liability for criminal evasion of customs and other payments. This article aims to answer the question of the validity of the elevation of the specified illegal act in the field of economic activity to the category of criminally punishable acts by analyzing relevant statistical data, recent legislative changes in the criminal law, studying the author's positions on the expediency of criminal law protection of calculation and collection of customs and other payments, and also taking into account technical transformations in the customs infrastructure. The author used dialectical, systemic, sociological, statistical, comparative legal methods to study the patterns of changes in the field of customs relations and subsequent legislative transformations in criminal legislation, the impact of these legislative decisions on statistical indicators of countering customs crime. As a result of the analysis of current statistical data related to the dynamics of the number of registered crimes, economic harm caused, recent legislative changes in the criminal law sphere, the study of author's positions on the expediency of criminal law protection of public relations related to the calculation and collection of customs and other payments, as well as taking into account information and technical transformations in the customs infrastructure the author concludes that it is advisable to establish a criminal law prohibition on evasion of customs payments, special, anti-dumping and (or) countervailing duties levied on organizations, as well as individuals. The relevance of this article is also due to the fact that over the past almost 10 years there have been no works devoted to the analysis of the socio-legal conditionality of establishing liability for evasion of customs and other payments paid in connection with the movement of goods across the customs border.

PENGELOLAAN PIUTANG DAGANG UNTUK MENJAGA KETERSEDIAAN KAS USAHA

The purpose of this community service activity is to help business owners have knowledge about the management of trade receivables, so that business owners can maintain the availability of cash for operational purposes. The partner chosen in the PKM activity is a packaged seasoning business under the Sasia brand. Sasia MSMEs are domiciled in Tangerang city, Banten Province. Based on initial observations to partners conducted by coming directly to meet with business owners, the main problem lies in the management of trade receivables, especially with the business to business (B2B) customer payment system which buys more goods in installments and not cash. The method offered in the activity is training/socialization on managing trade receivables offline. Through this activity, it is hoped that the accounts receivable problems that arise in the seasoning business will be resolved, and partners can maintain and manage their accounts receivable appropriately. Thus, it is hoped that in the future it will be useful in maintaining the availability of business cash needed by a business.

Challenges and cooperation on the way of European integration in the sphere of customs affairs

The bylaws of national legislation adopted during martial law and their application in the context of improvement and harmonization with EU legislation and fulfillment of the terms of the Association Agreement between Ukraine and the European Union in the field of customs affairs are analyzed in the article. Attention is focused on strengthening of customs cooperation with the EU countries, as well as developing the administrative, personnel, information and technical potential of the Customs Service of Ukraine and the urgency of overcoming and simplifying of the customs procedures for the movement of goods across the customs border of Ukraine during martial law. Taking into account the cross-border nature of the activities of the customs authorities of the EU member states, attention is focused on the procedures of using of the international agreements during customs control and customs procedures. Certain problems of the law enforcement activities of customs bodies in interaction with other state bodies on three relevant areas of functioning, in particular customs rules, settlement of customs payments, customs services and formalities, are singled out.
 The peculiarities of law enforcement activity in the field of customs affairs are analyzed in detail, namely: its state-authority nature; implementation of law enforcement in a manner specifically provided for by legal norms on the basis of established procedures and in accordance with a clear procedural sequence. Certain areas of activity of state bodies for the restoration of Ukraine are considered, in particular, regarding the implementation of anti-corruption and institutional changes in the field of customs affairs. Considering the conditions of martial law, an attempt to delimit the powers of customs authorities and other state authorities in matters of customs affairs was made, and in the light of the activation of the processes of Ukraine’s accession to the EU, the possibilities of interaction with international partners in the field of ensuring the rights and freedoms of subjects of foreign economic activity were analyzed.
 The conclusion is drawn on need to involve the customs service in the development of the plan of measures for the recovery and development of Ukraine in order to simplify for business the conditions for moving (importing) technical means, equipment, and products necessary for the reconstruction and the export of Ukrainian products across the customs border. Bearing in mind the study of the EU experience and the determination of the possibilities of its using in Ukraine, the main directions for improving the interaction of customs authorities with public organizations and business associations in the conditions of war and the perspective of European integration are outlined.

Митне регулювання в Україні у довоєнний та воєнний періоди

The purpose of the study is to theoretically substantiate customs regulation, identify shortcomings in its functioning in the prewar and wartime periods, develop appropriate practical recommendations, search for alternatives to meet the demand for imported goods and services, as well as restore the customs and financial security of the country with the condition of ensuring global partnership in terms of implementing the seventeenth Sustainable Development Goal «Partnership for Sustainable Development». It is determined that customs regulation is a subsystem of the State regulation of foreign economic activity, which defines and controls the process of movement of goods and services across the customs border. An analysis of current trends, dynamics of customs security and its components in the plane of effective customs regulation and ensuring the customs interests of the country is carried out. The key indicators that determine the level of customs burden on the country’s economy have been calculated and analyzed. There is a negative trend in such indicators as: provision of customs payments to the revenues of the State budget of the country, provision of customs payments of tax revenues, fulfillment of planned indicators for customs payments. The significance of customs payments in the revenues and tax revenues of the State budget is irrefutable. A comparative analysis of the both prewar and wartime structure of customs payments is carried out. The dynamics of the volume of taxed imports and the tax burden on them in Ukraine during 2018–2023 are studied. The key trends of the studied indicators are declining. The largest decline is observed during the pandemic in 2020 and at the beginning of the ongoing war in 2022. The partnership relations between the State and business entities in the context of the issue of customs regulation through the introduction of a system of preferential taxation of imports during the wartime period are studied. A systematization of normative legal acts of 2022, which fixed preferential conditions for business entities, is carried out. The problems of customs regulation of the prewar period, which significantly affected its efficiency and functional capacity in the wartime period, are identified. Measures for further leveling of these problems with the aim of European integration are proposed.

Методологические подходы к формированию системы управления налоговыми расходами

In the context of the increasing role of the state as a subject of market relations, fiscal instruments affecting the economy are expanding as a result of changes in the amount of expenditures or revenues of the state budget, which determines the relevance of the problem considered in the article concerning the formation of a tax expenditure management system. The subject of the study is functioning of the tax expenditure management system in the state in the form of falling revenues of the budget system of the Russian Federation due to the provision of tax benefits, exemptions and other preferences for taxes, fees, customs payments, insurance premiums. The purpose of the work is to systematize theoretical and methodological approaches to the formation of a tax expenditure management system by following the fundamental principles of its formation, identifying and overcoming methodological problems of applying the concept of tax expenditures, in respect of which their assessment and determination of their list for the next financial year and planning period and possible directions of its formation are required. The scientific novelty of the research lies in the substantiation of methodological approaches to the formation of a tax expense management system and the definition of its specific features. Based on the results of the study, it was concluded that the tax expense management system determines the need to improve the methods of accounting, systematization, evaluation, monitoring and control. To determine the meaningful characteristics of these methods, it is advisable to follow the established principles for making decisions on the inclusion of specific tax expenditures in the annually approved list and ensuring the effectiveness of the entire management system in relation to public legal entities.