Tax Mechanism Research Articles

Policy Note: Transformation Of The Legal Mechanism Of Taxation Under The Influence Of Digitalization: Russian Case Study

This policy note considers the impact of global digitalization of the economy on public tax administration based on the example of the Russian legal system from a comparative perspective. To understand the prospects of domestic taxation mechanisms, they are considered in comparison with similar mechanisms of other states and the legal regulation of foreign countries of Europe (European Union) and the United States while respecting the initiatives and solutions of international organizations (OECD, European Commission) in the context that is examined. A macroeconomic assessment of the effectiveness of the use of digital tax administration is performed, and the stages of its institutional development are highlighted. Digital technologies ensure an increase in the collection of taxes and other obligatory payments, reduce labour costs for tax control, and decrease the administrative burden on businesses. The main approaches to the digital transformation of the modern tax system are considered and new innovative developments and digital technologies in Russia are emphasized. It is noted that, currently, the Russian tax system in the context of the development of the digital economy is moving from an electronic to a ‘proactive state’. Digital economy, electronic document management, legal tax regulation, tax administration, tax audit.

ОПОДАТКУВАННЯ ВІТЧИЗНЯНИХ СІЛЬСЬКОГОСПОДАРСЬКИХ ТОВАРОВИРОБНИКІВ: ОСОБЛИВОСТІ, ПРОБЛЕМИ I ПЕРСПЕКТИВИ

Анотація. Проаналізовано рівень, динаміку і структуру податкових надходжень від сільськогосподарських товаровиробників за видами економічної діяльності підгалузей АПК i видами податків. Доведено, що сільськогосподарські товаровиробники є тими суб’єктами господарювання, які формують податкову базу доходів місцевих бюджетів. Найвагомішими серед податкових платежів сільськогосподарських товаровиробників є три податки (податок на доходи фізичних осіб, податок на майно та єдиний податок). Тому, розробляючи напрями вдосконалення оподаткування сільськогосподарських товаро­виробників, основну увагу варто зосередити на таких факторах, як земельні ресурси і додана вартість як об’єктах оподаткування, оскільки відносно трудових ресурсів та їхніх доходів сільськогосподарські товаровиробники виступають фактично лише податковими агентами. Досліджено особливості оподаткування сільськогосподарських підприємств України за загальною системою і спрощеною системою оподаткування у формі єдиного податку IV групи на сучасному етапі. Надано критичну оцінку наявних критеріїв, об’єктів і бази оподаткування для платників IV групи єдиного податку щодо відповідності ідеям створення спрощеної системи оподаткування. Визначено переваги і недоліки функціонування єдиного податку IV групи і запропоновано шляхи вдосконалення механізму справляння податків з агропідприємств для створення сприятливого податкового середовища. Такі заходи мають суттєво вплинути на діяльність сільськогосподарських виробників, зміцнити їхні позиції на ринку і посилити їхню конкурентоздатність. Реалізація розроблених заходів дасть змогу підвищити ефективність системи оподаткування сільськогосподарських підприємств, посилити регулятивну функцію податків і наповнюваність місцевих бюджетів, створити сприятливий клімат для впровадження інновацій і залучення інвестицій. Ключові слова: сільськогосподарські товаровиробники, оподаткування, податки, переваги, недоліки, удосконалення, заходи. Формул: 0; рис.: 1; табл.: 4; бібл.: 11.

Recycling Carbon Tax under Different Energy Efficiency Improvements: A CGE Analysis of China

Carbon emission reductions and sustainable development have become hot issues in international conferences. As the most direct instrument for carbon emission reductions, the carbon tax has not been favored by policymakers because of its negative effect on the economy. To achieve low-carbon sustainable development, we use a computable general equilibrium (CGE) model to simulate carbon tax recycling under different energy transfer efficiency improvements to achieve triple dividends of carbon emission reductions and social welfare improvement. This paper contributes to the literature on recycling carbon tax for triple dividends in China. The simulation has three main findings: (i) the carbon tax revenue recycling toward reducing the resident income tax rate yields triple dividends without any energy transfer efficiency improvement; (ii) the losses of GDP and social welfare are exaggerated. Meanwhile, the carbon tax brings down carbon emissions and total carbon intensity of GDP with a mild impact on the Chinese economy; (iii) the improvement of energy transfer efficiency demonstrates the advantages of recycling carbon tax and is essential for achieving triple dividends. Thus, we propose the following policy recommendations: (i) the pilot carbon tax mechanism should be launched in high-carbon sectors (such as coal) and then implemented in other industries gradually; (ii) the government should strongly support the technological improvement of energy transfer efficiency in order to achieve sustainable development.

Payroll taxes increase reserves in Ukraine

The authors analyzed the reformation of the payroll taxation mechanism in Ukraine, identified wage differences of the employees at the large, medium-sized and small business entities, figured out the reserves to increase tax revenues and cover the deficit of the Pension Fund of Ukraine by decreasing shadow wages and improving payroll taxation in Ukraine. Significant attention is paid to the salaries of the top managers of large business entities as a possible field of applying progressive taxation of personal income. Based on the analysis of the EU countries experience, the authors suggest imposing the second progressive personal income tax rate of 32% for the monthly income that exceeds 15 minimum wages. As well, the abolishment of the maximum unified social contribution base is recommended. In the paper, the authors prove the importance of reducing the level of the shadow economy in Ukraine by forming a public trust to the government policy and using accumulated tax funds appropriately. It has been proved that by reducing the shadowing of the Ukrainian economy to the EU level, the deficit of the Pension Fund of Ukraine can be covered only partially. This fact determines the necessity for Ukraine to ensure economic growth and increase wages.

The mechanism of personal income taxation and its prospects in Ukraine

The article analyses the current mechanism of personal income taxation in Ukraine, examining the impact of its individual elements on total revenues from personal income tax. The analysis of revenue contributions from personal income taxation to the consolidated state budget and local budgets indicates that the personal income tax remains the most important sources of revenue. In the structure of personal income tax revenues, wages are the main source of taxable income. The author analyses the mechanism of taxation for natural persons (businessmen) and tax receipts flowing to local budgets from incomes from business activity and highlights its shortcomings. In this context, he proposes introducing progressive tax rates, which will make it possible to shift the tax burden from individuals with low incomes to those who earn higher incomes.

Fiscal mechanism in public administration of social risks

Through a critical document-based methodology, the research analyses the essence of social risks as the object of public administration, proposes their classification, tests the need for interconnection of social and fiscal policies, bases the structure of the financial and budgetary mechanism for public management of social risks and, consequently, proposes to improve it by increasing investment in human capital to prevent social risks. It is concluded that the orientation of the social protection system to countervailing measures in relation to certain groups of the population seeks to solve the problem of poverty by strengthening tax distributional processes, increasing the amount of social spending on total state spending, but if it fails to increase the effectiveness of social programmers, the main social problems will not be solved. It is established that the main direction of improvement of the public social risk management tax mechanism should be the minimization of the compensatory nature of the financial provision of the consequences of social risks and, the activation of the application of investment tools for the prevention of their occurrence.

Carbon reduction decisions under progressive carbon tax regulations: A new dual-channel supply chain network equilibrium model

Since the production process in manufacturing industry is one of the main sources of carbon emissions, most governments have enacted relevant carbon policies to encourage manufacturers to invest in green production technology and reduce carbon emissions. However, the effectiveness of the carbon policy deserves further investigation because the manufacturers focus more on economic profits in actual operations. For this purpose, this paper proposes a dual-channel supply chain network (DCSCN) equilibrium model based on variational inequality theory to examine progressive carbon tax mechanism design of the government and its impacts on the production/pricing and abatement level decisions of the manufacturers in the DCSCN. In addition, this paper also examines the influences of the online channel introduction on supply chain network equilibrium decisions, carbon emissions and profits. We employ the modified projection and contraction algorithm to obtain the numerical solutions for several examples, and analyze the impacts of the key parameters on the equilibrium decisions and derive several managerial insights. The results show that if the government sets the high-level carbon tax and the cut-off value in progressive carbon tax policy appropriately, it can induce the manufacturers to improve abatement level actively; meanwhile the profit maximization goal of the manufacturer and the whole DCSCN can be consistent with the government's low-carbon emission target. Moreover, the introduction of online channel may depress the economic activities and lead to profit loss for the supply chain network but contributes to reducing the carbon emissions under progressive carbon tax policy. The conclusions may be useful for reference in the study of the low-carbon supply chain and the design of carbon emission reduction policy for government.

FORMATION OF STATE TAX POLICY MECHANISMS IN CONDITIONS OF UNCERTAINTY

The elements of formation of the state tax policy, which envisage the following vectors of tax management development, namely: organizational and legal (fiscal regulation - increasing the mass of tax liabilities of the tax burden); functional-stabilizing (orientation of providing current budget needs and stabilization of social processes); investment (attraction of public and private capital); monitoring of the tax burden (analysis and assessment of the annual volume of tax flows, the consolidated budget of tax flows of the taxpayer, the forecast of key financial indicators), are determined. Methodological approaches to assessing the effectiveness of socially oriented state tax policy in decentralization on the basis of functional-stabilizing approach, by providing current budget needs for stabilization of social processes, which ensures the development of human resources through tax mechanisms (regulation of direct and indirect taxes; regulation; proportions of taxes of different levels, transfer of tax burden from one category of taxpayers to others, regulation of taxes, objects of taxation, methods of calculating the tax base, tax benefits, calculation procedure and payment deadlines). Mechanisms for the formation of state socially oriented tax policy on the following components: functional-targeted (implementation of methods of progressive taxation, compliance with the principles of social obligations of the state and redistribution of income between different categories of citizens to maintain social balance in society); organizational - economic (financial support of social activities of the state; accumulation and expansion of social and regulatory potential of public finances), are developed. Keywords: public administration, state tax policy, civil society institution, tax climate, tax management, tax burden, social processes, tax mechanisms, tax potential, tax rates, socially oriented tax policy.

PERSONAL INCOME TAX IN UKRAINE: DETERMINANTS` ANALYSIS

Further reforming of the Ukrainian tax system in order to improve the mechanism of personal income taxation (PIT) and filling local budgets points out the relevance of the research. The article considers the determinants of personal income tax as an important component of the tax system of Ukraine.
 The authors analyzed the PIT revenues to the consolidated budget of the country and identified a positive trend of its growth. Determinants and indicators of impact on PIT revenues are highlighted in the study. These factors are divided into following groups: economic, political and legal, demographic, socio-cultural and individual. The influence of main factors (GDP, Employment Rate, Inflation Rate, Average PIT Rate) on the PIT revenue component is considered.
 Regression and correlation analyses were performed using STATA program, and linear regression was calculated. In order to assess the dependence, countries were clustered according to key factors of their economic development for the period 2009—2019. According to the analysis results, it is determined that PIT revenues are closely dependent on the general macroeconomic situation in the country, and the average tax rate has a significant impact on its revenues.

Разработка подходов к совершенствованию механизма налогообложения доходов физических лиц в Российской Федерации в условиях цифровизации налогового администрирования (Development of Approaches to Improving the Mechanism of Taxation of Personal Income in the Russian Federation in the Context of Digitalization of Tax Administration)

Russian Abstract: Работа посвящена перспективам трансформации двусторонних налоговых соглашений в цифровых условиях. Для рассмотрения поставленного вопроса авторами исследованы предпосылки к трансформации налоговых систем в условиях роста использования цифровых технологий, а также выделены ключевые налоговые вызовы. Часть из них решается как через ввод странами односторонних мер, так и через присоединение юрисдикций к глобальным консенсусам ОЭСР. English Abstract: The work is devoted to the prospects of transformation of bilateral tax treaties in digital conditions. To address this question, the authors studied the prerequisites for the transformation of tax systems in an environment of increasing use of digital technologies, and identified key tax challenges.

МОДЕРНІЗАЦІЯ ЕТАПІВ ЕКОНОМІКО-МАТЕМАТИЧНОГО МОДЕЛЮВАННЯ РОЗВИТКУ СКЛАДОВИХ ІНВЕСТИЦІЙНОГО ПОТЕНЦІАЛУ СІЛЬСЬКОГОСПОДАРСЬКОГО ВИРОБНИЦТВА УКРАЇНИ

Abstract. The article analyzes the conceptual foundations for modeling the development of the components of the investment potential of agricultural production, which make it possible to comprehensively evaluate the relevant indicators in order to timely determine, for agricultural entities, priority investment-attractive innovative projects for the future development of the production sphere.It also reflects the development of forecasting models among the mathematical and economic apparatus, which are based on the determination of the stochastic relationship between indicators of trend and cluster analysis, methods of non-equilibrium statistical mechanics, models of synergistic and differentiated equations of the logistic type, integral methods, etc. The article develops a classification of criteria for the effectiveness of organizational and economic state regulation of agricultural production.For the analysis of factors, a list of external factors that influence the emergence of structural changes in agricultural production of Ukraine, determining the degree of importance, strength of influence and its direction, based on expert assessment, was formulated. Factors that affect the effectiveness of agricultural production are systematized according to the relevant groups: the level of support through special regimes and mechanisms of taxation, the share of capital investments provided in their total volume to agricultural production, the dynamics of foreign investments, the share of bank loans provided in their total volume.The scientific approach to assessing the effectiveness of state regulation of the development of the investment potential of agricultural production has been improved, based on a combination of deductive and inductive approaches that reflect analytical and synthetic aspects of the analysis and ensure coverage of all aspects of the investment activity of agricultural entities

Environmental management in small and medium-sized enterprises of oil and gas industry

The correct organization of environmental management is essential for oil and gas enterprises provide improving the efficiency of their activity. This is vital for small and medium-sized enterprises (SMEs), which are the driving force behind the economies of highly developed countries. There was a passive form of environmental policy in many developing countries, the influence to environment was not been taken into account, the existing methods in the field of environmental safety management were not been effective enough. The investigation toward the environmental management in oil and gas industry enterprises of Azerbaijan was provided and comparing the results with Ukraine. The article also includes the institutional barriers in SMEs development, which negatively affect for environmental management. The results define the main areas for improving environmental management in oil and gas industry, in particular taxation mechanism.

Налоговый судья и социальное взаимодействие: возможно ли и в чем состоит участие?

The article focuses on the role and place of a taxation judge in the French legal system. The author notes that the activity of a judge in tax disputes is not regulated by any special act; it is self-independent and, at the same time, ensures compliance with the general principles of private or public law. The taxation judge seeks a balance in the delicate relationship between the tax administration and the taxpayer, where the latter perceives the tax as a burden rather than civic duty, and sometimes tries to violate the rules and the law, forgetting that, as Oliver Holmes said, “Taxes are the price we pay for the opportunity to live in a civilized society”. Many taxation mechanisms are balancing on the verge of legality and get out of the control of a judge who does not always have sufficient information and resources. Despite the progress made in this area, taxation judges have not been able to determine the intangible boundary between taxation engineering (legal taxation optimization opportunities) and tax planning (morally reprehensible tax evasion). Through case law, the taxation judge takes part in restoring tax justice, the confidence in the tax administration, the preservation of rights and guarantees for the taxpayer, and the desire to promote and encourage tax residency as the basis of a social contract.

ЗЕМЕЛЬНА РЕНТА ТА РЕНТНІ ВІДНОСИНИ: ЕВОЛЮЦІЯ ПОГЛЯДІВ І СУЧАСНЕ ЗМІСТОВНЕ НАПОВНЕННЯ

Introduction. The processes of transformation of the national economic system are accompanied by the aggravation of a number of problems. One of the most important is the problem of efficient use of land resources. The possibility of its solution is determined primarily by the level of organization and functioning of land-rent relations. Currently, rent, which is formed through the use of land and its resources, is considered only as a certain monetary income. There is no awareness that it is one of the most important material factors of expanded reproduction.The purpose of the scientific article is to systematize views on the essence of land rent and rent relations, to clarify the place of land rent in modern concepts of rent relations and to substantiate its role in the process of social reproduction.Results. The article substantiates the main provisions of modern concepts of rent relations and clarifies the place of land rent in their problems. The evolution of views on the interpretation of the essence of land rent and rent relations is revealed. The nature of land rent, preconditions of its origin and distribution, role in the process of social reproduction are determined. In modern conditions it is necessary to form a systematic vision of different types and subspecies of the general phenomenon of economic rent. It is also necessary to allocate land rent as an economic form of land ownership. Based on the modern interpretation of the general phenomenon of rent, it is advisable to show the place of land rent in the reproduction process. In comparison with wages, interest, income, land rent is the most controversial type of income in terms of its withdrawal and distribution. Land rent has features that distinguish it from other types of income. To determine land rent, its separation from economic rent, it is necessary to identify the distinctive features of land that are not inherent in other resources. They turn land rent into a special kind of income, not identical to wages, interest, profits, as well as royalties and other rental income. Distinctive features of the earth and other resources which make a single whole with the earth, are: 1) an origin not from human activity; 2) non-reproducibility (impossible to reproduce artificially); 3) quantitative limitations; 4) the ability not to wear out physically and not to grow old morally; 5) physical immobility (immobility); 6) the product of the earth can be formed both as a result of human activity and independently of it; 7) land is widely used in non-agricultural production as an area for mining, construction, placement of transport communications, etc .; 8) land is able to form or increase the amount of product without additional labor and therefore is able to provide as a surplus income natural rent (in physical terms); 9) the product of the land almost always needs further cultivation or leaves room for it - it always has the potential to create value added on its basis; 10) land by its nature has conditions for the social nature of ownership.Originality. The conceptual apparatus of rent relations is specified. It is proved that the concept of "rent payments", which is widely used, can not fully reflect the economic relations in the agro-industrial complex. The concepts of "rent withdrawals" or "rent redistribution" can be considered more adequate. This is due to the fact that withdrawals are made not only through the taxation mechanism. They are often carried out indirectly - through various market mechanisms.Conclusions. Land and its resources are gradually involved in the process of social reproduction, but the speed of such involvement has recently increased. The value of the product of land and land rent in the cost system increases to the same extent. Due to rent withdrawals and rent redistribution in the economic system are created favorable for production and consumption value ratios. Land rent in value terms can serve as a stabilizer. It can be removed where it is redundant and sent to where there is a distortion of exchange rates. Distortion of the foundations of rent relations does not allow to perform an important function of rent - to ensure rational relationships between agriculture and other areas of social production.

Оцінка податку на доходи фізичних осіб як фіскального показника

The article is aimed at examining the fiscal efficiency of personal income tax. It is proved that in order to simplify the administration of personal income tax, it is advisable to group the components of the total income of the taxpayer according to the relevant criteria. The results of the research once again testify to the fact that the most important role of personal income tax consists in regulating the cash (income) of the population and stimulating the use of labor force, as well as in being a significant source of income to the Consolidated Budget of Ukraine. To disclose the topic of the research, the authors calculated the fiscal significance of personal income tax in terms of the State budget, which tends to increase and the fiscal significance of personal income tax in terms of the GDP of the State. Also, the analysis of the efficiency of collecting tax revenues using a number of coefficients, one of which is the coefficient of personal income tax collection, is carried out. Having estimated the mobilized amount of personal income tax revenues and tax revenues to the budget from the planned ones, it is proved that the efficiency of personal income tax administration is quite significant and close to 1. That is, the level of expenditures of the population for the maintenance of apparatus of the State Tax Service of Ukraine decreases at a faster pace than the population itself, which can be considered as a positive point. As result of the carried out analysis of the fiscal efficiency of personal income tax, it is concluded that the tax administration under a certain system of implemented tax decisions is deteriorating, and the fiscal significance of personal income tax in both the State’s budget and GDP is reducing, while the real value of revenues from this tax is decreasing. Assessing the efficiency of personal income tax according to the above indicators will allow to more accurately plan the receipt of this tax to the budget, will facilitate in the development of measures to improve the regulatory and fiscal action of personal income tax, eliminate deficiencies in the taxation mechanism, form a rational structure of tax revenues to the budget, and contribute to the development of an efficient tax policy.

Metal-smithy, Bead-making, Jeweler’s weight, Trade-permit, Tax-stamp: Indus Script’s Semasiography Partly Decoded

This paper claims to have partly decoded the Indus script. It not only explains how the brief formulaic inscriptions found on seals and tablets helped in taxation and trade control, by recording taxed commodity-types, licensed commercial activities, tax-rates, mode of tax-payment, license-issuing entities etc., but also decisively identifies several semasiograms signifying metal-smithy, lapidary-works, related metrology and taxation. It shows how the sign resembling a “blowpipe inside a crucible”, repeatedly occurs in inscribed seals/tablets discovered from workshops of metal-workers, goldsmiths and bead-makers, and directly occurs on certain inscribed gold and copper implements. Crucibles and blowpipes being ancient smelting tools, their ideograms ( , , ) denoted gold-smithy in Egyptian hieroglyphs too. Moreover, certain Indo-Aryan and Dravidian words for metal-smith directly translates to “blowpipe-blower”. Thus archaeological, script-internal and linguistic evidence confirm that sign signified precious metals and metal-smithy in different contexts. Similarly, fish-like signs ( , , etc.), which repeatedly occur in inscriptions discovered from bead-makers’ and jewelers’ workshops across Indus settlements, arguably signified meanings associated with gemstones, bead-making and related metrological standards. Interestingly, in Proto-Dravidian, “mīn” means fish, shining, bright, and gemstone. Moreover, Indus valley’s eye-patterned gemstone beads were famous as “fish-eye beads” in Mesopotamia. The gemstone related fish-signs sometimes co-occur with , possibly because, the bead-makers and goldsmiths, who physically shared same workshops, were part of related trade license and taxation mechanisms. This paper also claims that the frequent terminal signs symbolized different volumetric ( ) and weight-based ( ) metrological units used in revenue collection and thus metonymically signified certain tax categories. Specifically, the terminal arrow-like sign , which mostly co-occurs with gemstone and gold-smithy related semasiograms, arguably symbolized a goldsmith’s balance, and metonymically signified tax-payments and trade-permits associated with precious commodities. Since ancient assay balances generally used arrow-like pointers for precise weight measurement (a comparable balance is discovered from Harappa), Indic words for assay balance (eṣaṇī, nārācī) are often etymologically rooted to arrow-words. This study claims that sign (allograph ), symbolized the abrus precatorious seeds, the traditional Indian jeweller’s weight, and metonymically signified goldsmith’s weight system and treasury. Many other related conjectures of this study significantly advance our understanding of Indus script.

СПЕЦИФІКА УПРАВЛІННЯ БЮДЖЕТНИМИ РИЗИКАМИ СТАЛОГО РОЗВИТКУ РЕГІОНУ

The article scientifically substantiates and develops the conceptual provisions of the theory and methodology of formation of budgetary and tax mechanisms, provides practical recommendations for the development of fiscal mechanisms of sustainable development of regions. The author has developed methodological tools for assessing the functioning of fiscal mechanisms at the regional level in terms of forward-looking indicators and risk-oriented indicators for assessing the functioning of fiscal mechanisms. It is proposed to create a classifier of budgetary risks of sustainable development of regions, which can be used in forecasting and analytical activities of financial and control bodies of the federal, regional and local levels. The author's approach to the management of budgetary risks of sustainable development of the region is substantiated. It is noted that modern methods of reducing budget risk are the introduction of software forms of budget expenditure planning, the method of risk diversification, the method of optimal management, synergetic method and the application of new principles of public and municipal finance management; the advantages of methods for assessing budgetary risks of sustainable development are outlined. The author outlines the scheme of budget risk management of sustainable development of the region, which includes: strategy of socio-economic development of the subject of Ukraine; forecast of socio-economic development of the region for a three-year period with the addition of variable indicators; forecast of the main parameters of the regional budget and budgeting taking into account priorities and constraints; approval of the budget of the subject of Ukraine, substantiation of methods of management of budgetary risks of sustainable development of the region; budget execution, budget risk management of sustainable development; control over the results of budget risk management. It is proved that high-quality and effective management of budget funds by participants in fiscal relations requires timely identification of possible budgetary risks and determining the correct way to assess them. Substantiated proposals for improving budget risk management, which will help improve the quality of budget risk assessment.

Dynamics of tax revenues in Ukraine during the crisis

The article investigates the dynamics of the volume of tax revenues to the budget of Ukraine during the crisis. Using the R | S analysis, it was determined that the dynamics of tax revenues (in monthly terms) to the Consolidated Budget of Ukraine in the period 2011-2021. is antipersistent, fractal-like and does not lend itself to forecasting methods based on parametric dependencies, simple and complex trends. The form of the distribution of the probability density of the volume of tax revenues is investigated, their entropy and entropy production are determined. It has been established that the most critical periods in the formation of tax revenues are 2019-2020, for certain types of taxes - 2016-2020. on the basis of which a typology of taxes with nine types was formed. Five such types of taxes were found in Ukraine. It has been established that, based on the characteristics of the dynamics of entropy and entropy production, the most effective for overcoming the crisis will be tax instruments associated with the collection of income tax, value added tax on goods produced in Ukraine, rent and rent for the use of subsoil. In our opinion, for other types of taxes and fees, significant changes in the tax mechanism are inappropriate.

FISCAL AND SOCIAL DETERMINANTS OF PERSONAL INCOME TAXATION

Introduction. Direct taxes are an important financial regulator of socio-economic processes, they are one of the most important sources of budgeting and an essential tool of state regulation. The personal income tax is the main tax through which social policy is implemented in the developed countries of the world. The advantages of this tax include its social justice and fiscal efficiency, as it is able to make the level of taxation directly dependent on the amount of income of taxpayers. In addition, progressive tax rates and benefits can reduce the tax burden on the poor and increase it on high-income earners. The purpose of the article is to considerate the theoretical and practical aspects of administration of the personal income tax in the conditions of reforming of fiscal policy of Ukraine, systematization of directions of improvement of collecting of the personal income tax to local and state budgets. Methods. Methods of dialectical analysis and synthesis, deduction, induction logical generalization, comparison and formalization are used in the article. Results. The article is devoted to the study of the essence and role of personal income tax administration. Peculiarities of citizens’ income formation as an object of taxation are considered. Monitoring and analysis of indicators of personal income tax to local and state budgets was carried out. The growth rates of nominal revenues of personal income tax and military duty, real and nominal wages are studied. It was found that the main factors reducing the level of fiscal efficiency of personal income tax in Ukraine are the shadowing of incomes and the outflow of labor, including skilled personnel. Ukraine’s tax policy for the last five years is fiscally oriented and does not take into account the social aspect of personal income taxation. As a result of the research, the directions of increasing the efficiency of personal income taxation in Ukraine based on foreign experience are systematized. Prospects. The current model of personal income tax does not sufficiently perform a socioeconomic function, does not provide a socially equitable distribution of income between different segments of the population. In recent years, the fiscal significance of the personal income tax has remained, but the system of personal income taxation requires the application of progressive rates. Therefore, promising areas of future research should be the development and improvement of the mechanism of personal income taxation in the context of ensuring their socio-economic interests.

Development of the system of mandatory payments and taxation in the USSR in the early 1970s

This article explores the peculiarities of the system of mandatory payments and taxation in the USSR in the early 1970s. The author traces the amendments made to sectoral legislation (land, water, administrative, civil, etc.) and the corresponding improvement of the mechanism of collection of charges in this historical period. Special attention is given to the role of mandatory payments to be paid by rural population, changes in the procedure for collecting tax on sales, as well as clarification of the legal status and competence of inspection authorities. It is noted that the basic taxes paid by rural population in the early 1970s were the agricultural tax, income tax (from citizens who have income from agriculture in cities, workers, summer villages, and rural settlements) and ground rent. Analysis is conducted on the corresponding legislation and practice of its implementation. The conclusion is made that despite a range of decisions made with regards to providing incentives for agricultural tax, the cancellation of charges for the owners of livestock along with the state tax on horses of individual farms, reduced income tax rates and tax on single persons and citizens who have small families, the general the task for significant reduction of tax burden on the population has not been resolved. This was substantiated by fact that the mechanism of income taxation has undergone isolated changes, but its essential construct has not been revised. In the early 1970s, no reforms within the system of mandatory payments and taxation have been conducted in the Soviet Union.