Development Of Tax System Research Articles

НАЛОГОВАЯ СИСТЕМА РОССИИ: СОВРЕМЕННЫЕ ТЕНДЕНЦИИ

Tax collection is one of the basic conditions for the existence and development of any state. The tax sphere, since its inception, has largely succeeded in its development, but today there are quite a lot of problems that need to be solved. In general, the article is a review of current trends in the development of tax systems of the Russian Federation and a number of EU countries, the problems of improving the tax system.

Reduction in the importance of indirect methods of assessing the taxable base in the conditions of digitalization of the economy

Starting from January 1, 2021, the uniform tax on imputed income (UTII) has been cancelled. According to the Federal Tax Service, 96.2% of the subjects who paid UTII have already chosen an alternative tax regime. At the same time, in society, scientific and professional communities, and among business representatives, there are different points of view on this problem, opinions are expressed about the need to preserve indirect methods for assessing the taxable base, and UTII in particular. The state initially had a plan to abandon UTII and consistently implemented the abandonment of indirect methods of assessing the taxable base, implemented under imputed taxation (UTII), and the transition to fair taxation (STS, CTS) based on real income. The introduction of special tax regimes based on fair taxation has contributed to the growth of tax collections and an increase in the number of business entities that have chosen these regimes. Based on the results of the paper, conclusions are presented that can be used in analyzing the prospects for the development of tax systems.

Tax system of Ukraine: genesis and current state

The paper comprehensively examines the development of the national tax system, its constituent elements, and determines its role in the economic activity of the state. Special attention is paid to normative and legal acts that carried out legal regulation in the studied period. The impact of the tax system on stimulating or disincentivizing the development of certain sectors of the economy is considered. Scientific literature, statistical data in the field of taxation, which allow assessing the current state of the domestic tax system, have been studied. During the study of the topic, the special role and importance of the tax system in the economic activity of the state, which is the foundation of the budget and allows the state to effectively implement the necessary socially important functions, was proven. In the formation of public money funds, which are then directed to the relevant spheres of life, tax revenues in comparison with other budget revenues provide a significantly larger share of profit to the corresponding budget, and therefore, in recent years, the leadership trend of tax revenues in the revenues of the budget of Ukraine has been maintained. Legislative regulation of tax revenues is ensured by tax and budget legislation. During the study of the development of the tax system of Ukraine, its constant development and improvement, a significant change in the composition of tax payments from the initial situation to the current state were revealed. The processes of regulatory regulation of the reforms carried out are also considered. A particularly significant contribution to the development of the tax system of Ukraine was made by the Tax Code of Ukraine, which systematized the structure of tax legislation.

ЕТНОГРАФІЧНІ ОСОБЛИВОСТІ ФОРМУВАННЯ СИСТЕМИ АДМІНІСТРУВАННЯ ПОДАТКІВ УКРАЇНИ

Scholars and financiers-practitioners have long been researching issues related to the processes of tax administration in order to ensure the economic development of the state and at the same time not to harm the interests of the average citizen who pays them. The activity and relevance of such research raises the need to analyze the ethnographic features of tax administration in Ukraine, as some of the problems in this area have already had solutions in the past, many of which, at least to some extent, could be useful today. The purpose of this publication is to reveal the features of tax administration in Ukraine at different stages of historical development. The article examines the ethnographic features of tax administration in Ukraine. The historical stages of development of the domestic tax administration system, in particular, such as tax administration during the times of Kyiv Rus (IX–XIII centuries), during the Lithuanian-Polish period (early XIV century), in the Cossack state (1648–1654), for times of the Russian and Austro-Hungarian empires (mid-sixteenth – early twentieth century), during the Soviet Union (1917–1990) and in the independent Ukraine. The strengths and weaknesses inherent to each of these stages are highlighted. It was found that the organization of taxation processes depends on the level of development of the state. The domestic system of tax administration, in our opinion, developed under the pressure of circumstances without proper scientific justification and analysis of macro- and microeconomic consequences, without taking into account world and historical experience in the formation and development of tax systems. Many problems in the field of taxation were similar at different times. Knowing how to solve them in the past can be useful today. History has it that both overconfidence and over-suspicion of the taxpayer are detrimental to tax interests. At acceptance of any changes, both in a theory and in practice, it is advisable to explore as deeply as possible the historical aspects. Improvement of the domestic tax administration system should take into account the world and historical experience of formation and development of tax systems.

Ways of increasing the efficiency of tax collection to the budgets of local communities on the basis of tax management

The processes of fiscal decentralization have provided new opportunities for local self-governments: independent formation of local budgets; direct intergovernmental relations; expansion of the tax base, etc. The steps taken in the field of decentralization are currently not systemic. The distribution of fiscal payments between different levels of the budget system is the purpose of the tax system development, which would allow to provide quality social services to the population and influence the economic development of the territory. The main directions of tax system development on the basis of tax management are substantiated as following: strengthening the role of local taxes; establishing the effective interaction of local governments with economic entities operating in the territory to increase budget revenues; ensuring the fair distribution of the tax burden and its reduction while seeking budgetary compensators; strengthening the tax control; ensuring the efficient informational and explanatory work and interaction of local self-government bodies and taxpayers. The author's vision of the tax system within the new architecture of the administrative-territorial system is offered. The inclusion of personal income tax in local taxes and change in the mechanism of crediting the tax to local budgets are substantiated. There are two alternatives to change the procedure for crediting personal income tax to local budgets, due to which the associated burden will be distributed among all participants: 1) crediting personal income tax to local budgets at the place of residence of the individual payer; 2) giving the individual payer the right to choose which budget should include the amount of tax paid (by place of work or place of residence). The directions of increasing the property taxes accumulated in local budgets are defined. The paper develops a model of the form of self-taxation of the population in territorial communities. According to the model, the residents are involved in the accumulation and distribution of tax resources. The suggested model is based on the accumulation of financial resources by a parity principle: the amount of financial contribution of local governments is determined at a level not lower than the amount contributed by residents.

Problems of the Ukrainian tax system development in decentralization conditions

The purpose of the scientific article is to determine the patterns and problems of development of the tax system in Ukraine in the context of decentralization. Methods. General scientific methods and approaches, system approach, general research methods (analysis, synthesis, generalization, comparison), statistical methods and comparative analysis are used in the research. Results. The article analyses development of the tax system of Ukraine in the context of local government reform. The peculiarities of personal income tax collection to local budgets, excise tax on fuel and excise tax on sales of excisable goods by retail trade entities, payment for land, etc. have been studied. A significant increase in tax sources of local budgets has been established due to the introduction of excise tax on the sale of excisable goods and fuel by retailers, expansion of local taxes and fees at the expense of property taxes. In the process of analysis, the strengthening of disparities in financial support for the development of regions and territorial communities as a result of decentralization was established. Unused opportunities and resources were identified, which indicates insufficient work of local governments to accumulate taxes. The peculiarities of filling local budgets in terms of regions at the expense of tax revenues are substantiated. Practical meaning. Current situation and problems of the tax system are determined on the basis of the analysis in the context of decentralization changes, which is important for both executive authorities and local governments, as it allows to identify trends and patterns of increasing tax revenues of local budgets. Prospects for further research. In the context of determining the changing role of the tax system in conditions of local government reform, it is necessary to observe the level of territorial communities to identify patterns and problems of tax system development that hinder community development and promising areas of taxation at the local level.

Improvement of Tax Service Efficiency Management

Purpose of the paper is to assess the effectiveness of the Russian tax system in comparison with the development of public service in tax authorities. We use both quantitative methods (e.g. factor analysis, principal component analysis, economic and statistical methods, econometrics, content analysis of legal acts, tabular and graphical visualization, monitoring of tax authorities’ performance indicators) and qualitative methods (comparative legal and comparative historical analysis). The main research results: we proposed a comprehensive methodology for assessing the development of the tax system and service of the Russian Federation in 1991–2018; we have tested this methodology on statistical data and calculated the indices; compiled a chronology of key events in the tax system and tax authorities development of the Russian Federation. We conclude the high degree of statistical compliance of the tax system development indices and the tax service indices. Mismatch in the dynamics of the development of the tax system and tax service in the recent period of 2014–2018 caused by both the post-crisis slowdown in economic growth and negative trends in government regulation (the emergence of new taxes, increased tax burden on businesses etc.). Identified patterns can be used to assess the effectiveness and reform of service in the tax authorities.

TAX STIMULATION AS A FINANCIAL INSTRUMENT FOR SUSTAINABLE SOCIAL AND ECONOMIC DEVELOPMENT OF HROMADAS AND REGIONS

The article examines the tendencies of structural changes in the formation of budget revenues of different levels related to the processes of financial decentralization and identifies important areas of tax stimulation of social and economic development of hromadas (local communities) and regions in Ukraine.Taxes are the major financial instruments for ensuring the sustainable social and economic development of hromadas and regions. Budget and tax policies are tools for developing the regional economic system. Stable local economic development can be ensured if the tax system is improved. Local budget revenues are the major and stable source of local economic development, and their growth is an important issue, as these funds can serve as an incentive to stimulate investment in the regions. Goal. The purpose of the article is to investigate the trends of tax system development in the conditions of financial decentralization and to identify financial mechanisms and means of stimulating sustainable social and economic development of communities and regions of Ukraine. Method. The study uses an empirically theoretical method based on the analysis of statistical data, synthesis of social and economic status of territorial development and community development. Results. To achieve a high level of sustainable development of the regions of Ukraine, a set of tools for stimulating the development of local self-government is proposed.

Analyzing the tax system as a factor of social policy of the State

Subject. We analyze the effect of the tax system on the social policy of the State. Objectives. The study aims to assess the tax system as a factor of government’s social policy. Methods. We employ methods of systems analysis, including qualitative, quantitative, factor analysis, generalization methods, comparison, as well as economic and statistical methods. Statistical reporting of the Federal Tax Service of Russian Federation, the Ministry of Finance of the Republic of Bashkortostan, and laws and regulations served as empirical and information basis of the study. Results. We considered the classification of tax instruments for implementing the social policy of the tax system, and indicators of social policy efficiency; identified areas for stirring up the social function of taxes. They include the use of personal income tax as a tool of State social policy through the separation of taxpayer income to apply progressive tax rates based on the analysis of statistical data on taxpayers’ size and per capita income behavior. The paper defines the main factors of changes in the modern social policy of the Russian Federation. Conclusions. At the present stage of tax system development, the paper highlights the increased level of social awareness. It is manifested in increased social control over effective functioning of State institutions. This control focuses on the quality of public services, cost effectiveness, and improved living standards.

Інституційний вимір розвитку податкової системи в Україні в умовах децентралізації

This article examines the institutional foundations of the development of the tax system in Ukraine under the conditions of reform of local self-government. The expediency of the institutional approach to the analysis of the tax system development is substantiated. The main elements of the tax system in this context (formal and informal institutions, organizational structures) are highlighted. The negative aspects of the development of the tax system in Ukraine in the period of independence have been identified and the risks associated with them have been identified. The expediency of tax reform in the context of transformational changes in the system of public administration and strengthening of local self-government is substantiated. A study of regulatory support was carried out, which had a significant impact on the development of the tax system in the context of decentralization. Some changes in the tax system for the benefit of local self-government have been identified and justified. The main legislative acts are investigated, which, having a significant impact on the reform of the local self-government system in Ukraine and the change of the territorial organization of the authorities, are characterized by indirect influence on the development of the tax system; however, the significant impact of such acts on the efficiency and effectiveness of the tax system reform was noted. It is established that as a result of decentralization changes, a new financial basis for the development of local self-government has been formed, namely: the key role is given to taxes and fees that are levied on the territory; to give local governments the right to regulate rates and to establish privileges of local taxes and fees; there was a redistribution of national taxes and fees between budgets at different levels; the formation of the system of local taxes and fees due to the allocation to local powerful tax sources of budget revenues; tax revenues of budgets have been expanded due to the introduction of excise tax on sales of excisable goods.

Политика гармонизации акцизов в ЕС и ЕАЭС

Objective: to develop recommendations for improving the EAEU policy in the field of excise duties harmonization based on comparative characteristics of the types of harmonization policies applied in the EU and the EAEU.Methods: general methods of cognition (deduction and induction, analysis and synthesis, description and generalization) and specific scientific methods of cognition (comparison method, tabular and graphical method of data representation) were used. Results: the actively developing processes of globalization, international integration and digitalization cause the need to update and adapt national tax systems. At the same time, the global practice and theory of taxation demonstrate the absence of a unified approach to the harmonization of taxation, especially with regard to indirect taxation. In order to assess the mechanisms of tax harmonization, specific features of the policy of harmonization of excise taxes applied in the EU and the EAEU are considered, which, in particular, include the issues of harmonization of objects of taxation (excisable goods), tax base, tax rates and the mechanism of tax procedures. The effects and risks of the non-restrictive policy of the European Union and the restrictive excise policy of the EAEU are analyzed. The assessment of the actual results of harmonization in the integration associations under consideration allowed determining the priority areas of harmonization in the Eurasian space by using mixed-type policies.Scientific novelty: it consists in the development of theoretical and methodological foundations for the formation of a coherent excise policy within the Eurasian Economic Union, based on the advantages and disadvantages of two types of harmonization policies (restrictive and non-restrictive) and taking into account the existing practical experience of their implementation. Practical significance: the main provisions and conclusions of the article can be used in scientific and pedagogical activities when considering issues of excise taxation, as well as in determining the priority directions of the tax system development of the Russian Federation.

ВЗАИМОСВЯЗЬ ПРОЦЕССОВ РАЗВИТИЯ НАЛОГОВОЙ СИСТЕМЫ И НАЛОГОВОЙ СЛУЖБЫ В РОССИИ

Introduction: the study of the interrelation of tax system and tax service development in the Russian Federation is presented. Aims: to assess the efficiency of the Russian tax system in comparison with the development of public service in tax authorities. Methods: quantitative methods (e.g. factor analysis, principal component analysis, economic and statistical methods, econometrics, content analysis of legal acts, tabular and graphical visualization, monitoring of tax authorities’ performance indicators); qualitative methods (comparative legal and comparative historical analysis). Results: a comprehensive methodology for assessing the development of the tax system and tax service of the Russian Federation in 1991–2018 has been proposed. The methodology has been tested on statistical data and respective indices have been calculated. A chronology of key events in the tax system and tax authorities development in the Russian Federation has been constructed. The hypothesis of a statistical relationship presence in the development of the tax system and tax authorities has been verified. Conclusions: the research states a high degree of statistical compliance of the tax system development indices and the tax service indices. Mismatch in the dynamics of the tax system and tax service development in 2014–2018 was caused by both the post-crisis slowdown in economic growth and negative trends in government regulation (the emergence of new taxes, increased tax burden on businesses, etc.). The revealed patterns can be used in assessing the efficiency of tax policy and restructuring the public service in tax authorities.

К ВОПРОСУ НАУЧНОЙ ДИСКУССИИ О ФУНКЦИЯХ СОВРЕМЕННОГО НАЛОГА

From the end of the twentieth century to the present (2020), tax theories and the development of tax systems continue to be an extremely lively area for scientific discussion in international economics. It is impossible to understand the economic nature of taxes in practical terms in relation to the functioning of the tax system of a particular state in today's conditions without defining the functions, principles of taxation, fixing the main features, as well as the pros and cons of the socio-economic structure in a particular historical era. The article presents the materials of a theoretical study of the essence of such a complex and multifunctional in modern conditions cost scientific category as tax. The essential characterization of the content of the tax definition is currently impossible without highlighting its systemic features, primarily functions that allow us to clarify its place in the general environment of financial flows and require clarification in each specific historical period. The results of the study of the main functions of taxes identified in science allowed us to formulate and justify the following conclusions: 1) in a specific historical period, there are no methodological measures and criteria indicators that prevent the establishment of the effectiveness of the implementation of a particular function; 2) the implementation of the basic functions of taxes is simultaneously possible with the orientation to certain principles; 3) in the current economic conditions, the classical principles of taxation can no longer be considered sufficient for the full implementation of the basic and derived functions of the tax. In this regard, the article presents the author's view on the systematization of the basic principles of taxation, which, in contrast to the invariable interpretation of the essence of tax as an economic phenomenon, must undergo transformation in each historical period.

Historical experience of the reforms of taxation of private entities in Russia and the Republic of Kazakhstan

The object of this research is the reform process of taxation of private entities based on the Russian, Kazakh and other foreign experience. The subject of this research is the set of legal, organizational and economic measures pertinent ti the reforms taxation of private entities aimed at ensuring fairness and further positive development of tax system of Russia and Kazakhstan. The author determines the patterns in periodicity of conducting reforms, success and mistakes in their implementation from the perspective of the theory of taxation, tax regulation, and theory of reforms. The article proposes an algorithm for carrying out the reform of taxation, which can serves as a universal instrument for reforms of the entire tax system or its separate elements. The scientific novelty consists in the comprehensive study of the reforms of taxation of private entities based on the Russian, Kazakh and other foreign experience for the period from 1991 to 2020 within the framework of decennial cycle ended with the crises, which allowed detecting the merits and flaws and proposing a unique sequential algorithm for conducting taxation reform. Articulation and substantiation of the goals, as desired state of the system of taxation of private entities, vectors of its transformations and development, requires their precise formulation, quantification and implementation.

Between distribution and allocation: growth models, sectoral coalitions and the politics of taxation revisited

Abstract Comparative political economists typically analyze taxation as a matter of distribution. This article, by contrast, develops an allocational explanation of tax policy choices: as taxes channel resources into some economic activities and restrain others, they become subject to the allocational concerns of different sectors of the economy. We argue that sectoral coalitions straddling the class divide substantially influence the development of tax systems, and that the power of these coalitions is associated with differences in growth models. Employing a mixed methods approach, we first demonstrate a systematic association between growth models and consumption taxation across advanced capitalist countries. Afterward, we study the German value-added tax increase in 2005 to illustrate the political dynamics behind this result. In this debate, an export sector coalition prevailed over a domestic sector coalition that strongly opposed the reform. We conclude by discussing the wider implications for the study of taxation and comparative capitalism.

Public Administration in EU: Harmonization of Income Taxes

In the European communities, the need for tax harmonization has begun to commence since the beginning of integration efforts in the 1960s. The first attitudes to tax harmonization were very ambitious. The plan was not only structural harmonization but also harmonization of tax rates. The paper examines the nature and course of the direct tax harmonization process, describes its advantages and disadvantages as well as the positive and negative effects of tax competition. The paper aims to examine the development and volume of selected income taxes collected in the Member States of the European Union. It tells whether the harmonization of income taxes is still a stagnant process. Cluster analysis deals with looking for similarities of multidimensional objects. Two clustering methods were used – hierarchical agglomeration clustering and non-hierarchical clustering. Cluster analysis aimed to achieve groups of states that would have some homogeneity. Cluster analysis sorted the data into sets with the highest possible similarity within the group and the most significant difference between the groups. Analysis of tax burden and income tax rates confirmed significant differences in these indicators across the EU. On the other hand, cluster analysis revealed similar developments in tax systems in terms of their geographical location in Europe. Cluster analysis can be used to suggest possible steps to co-operate in harmonizing Member State taxes in the future. The authors of this article propose the possibility of harmonizing taxes and cooperating gradually within clusters rather than trying to apply uniform rules in all EU Member States at the same time. The conclusion of the article raises problems in the field of harmonization of direct taxes in the EU. The possibility of preserving autonomy in deciding on tax burden in the country is left to the many Member States because they see that autonomy as a competitive advantage, particularly in the field of investment. Keywords: tax, harmonization, income, European Union, cluster analysis.

THE TAX SYSTEM OF UKRAINE IN THE TRANSITION ECONOMY

The relevance of the study of the tax system is due to the objective need for qualitatively new instruments of taxation influence on economic development. Nowadays, the tax system of Ukraine is predominantly fiscal; since fiscal and other functions of taxes are interrelated in inverse proportion,their implementation is problematic. Therefore, despite the existence of the thorough research of the tax system of the state, there is a need to substantiate the essence, objectives,principles and criteria of the effectiveness of this complex and large-scale process. Exploration of the theoretical and practical principles of the state tax system development in the context of the economy transformation, defines the main directions of the improvement of the tax system of Ukraine. The article specifies the peculiarities of the formation of the tax system of Ukraine, considers the components of the tax and describes them. It emphasizes the need to control the timely payment of taxes and fees. The article determines the deficiencies of the domestic tax system, such as inequality in taxation and discretionary application of tax norms. The efforts for the improvement of the tax system of Ukraine should be aimed at reforming tax authorities, which should correspond with the best European models,and at organization of educational work with the taxpayers of different age groups.

Decentralisation of Financing of Self-Government Units in the Republic of Croatia

Since its independence the Republic of Croatia has commenced a thorough reconstruction of its taxation system according to the market economy taxation policy. Essential taxation reforms have brought the system closer to EU systems i.e. it has been being harmonized with taxation systems of developed European countries. The Republic of Croatia has adopted solutions that are used by the majority of European countries. Current tax system of the Republic of Croatia can be viewed through three fiscal levels, but this paper deals with decentralization and revenue, especially tax revenue of local and regional self-government units. The paper will present importance and a way of collecting revenue, especially tax revenue and satisfying public needs in terms of counties, cities and municipalities. The local and central characteristics of the certain types of taxes and the specialities thereof, as well as the applied functional differences are also scrutinized, and a widely accepted opinion of the taxpayers is explained. Taking these into account, the scientific contribution of this paper is that it provides a basis for further research on tax system development.

War mobilization or war destruction? The unequal rise of progressive taxation revisited

This paper sheds new light on the massive increase of progressive taxation in the first half of the twentieth century. Existing studies have explained this increase with the mass mobilization during the World Wars and the call for a fair sharing of the burdens of these wars. My analysis suggests that this effect was not uniform across mobilizing countries. Instead, the call for higher taxation of the rich was curbed by allocational concerns about capital rebuilding in those countries whose capital stock had been severely damaged during the war. Therefore, these countries increased progressive taxes much less. I find some evidence for this thesis in an analysis of top income and inheritance tax rates in 20 developed economies and a case study of tax policy debates in Germany after World War II. My finding has importance for the understanding of progressive taxation as well as for the understanding of tax policies more generally. It suggests that the two World Wars affected the development of tax systems not only through a distributional but also through an allocational channel.

PROBLEM ASPECTS OF FORMATION OF THE LEGAL INSTITUTE OF CONSOLIDATED TAXPAYERS’ GROUPS IN RUSSIA

The subject. The article is devoted to the prerequisites of the emergence and essential characteristics of the institution of consolidated taxpayers’ groups in Russia and abroad, revealing of advantages and disadvantages of the legal regulation of the creation and operation of consolidated groups of payers of corporate profits tax, analyzing results and directions of the development of tax consolidation in Russian Federation.The purpose of the article is to identify positive and negative aspects of the functioning of the institution of consolidated taxpayers’ groups in Russia with the establishment of prospects of tax consolidation and the likely directions of its development.The description of the problem field. The development of the world economic system stimulates the emergence of new forms of management, characterized by the enlargement of busi-ness, the pooling of resources of individual enterprises into a single system in order to optimize entrepreneurial activity. These trends are reflected in the development of tax systems of various countries, that is expressed in the formation of institutions of consolidated taxpayers’ groups. Tax consolidation in Russia is a relatively new phenomenon, and it seems necessary to examine this institution from the law enforcement point of view, to evaluate its effectiveness.Methods and methodology. The authors used methods of analysis, synthesis, as well as formal-legal, comparative-legal, historical methods of investigation.Results and the scope of its application. The authors note that the institution of tax consolidation today is presented in the tax systems of most modern countries.The practice of applying the institution of consolidated taxpayers’ groups testifies to the existence of a significant number of advantages and disadvantages of tax consolidation in Russia. The moratorium on the creation of consolidated taxpayers’ groups, due to the contradictory nature of their influence on the structure of regional budgets, the main directions of the tax policy of Russia testify to the forthcoming reform of tax consolidation in Russia.Conclusions. The emergence of the institution of tax consolidation is a natural consequence of the development of the world economy. Most developed countries of the world actively introduce elements of consolidation into taxation systems, successfully providing a balance between the positive and negative consequences of its implementation. Meanwhile, the level of preparation and implementation of tax consolidation in Russia at the moment is not high enough, so the institution requires a consistent reform.