Profit Tax Research Articles

Business Environment Using Evaluation Based on Distance from Average Solution (EDAS) Method

Business Environment the term "business environment" refers to the entirety of all individuals, organizations, and other influences that are independent of the industry but may have an impact on its output. "Much like the universe, deduct from it in the subset as depicts that system, and the remaining is the environment," writes an unknown source. As a result, an organization's environment also includes the economic, cultural, governmental, technological, and other influences at play outside of it. Its environment consists of external factors such as the media, courts, customer groups, competitors, individual clients, or organizations facing management. Business operations, in contrast to ours, do not reside in a prison. Each organization is not even an end unto itself; it develops, survives, and thrives under the restrictions imposed by its particular environment and forces. Even though a single system can delicately modify or control these pressures, it is forced to respond or adapt as necessary. Business managers can recognize and assess external pressures more effectively if they have a deeper understanding of their environment. The term "business environment" refers to the whole of all the individuals, organizations, and other influences that are independent of the industry but may have an impact on its output. The business environment aids in planning, identifying business possibilities, utilizing efficient resources, and enhancing the enterprise's general performance, expansion, and profitability. Business environments come in a variety of shapes and sizes, including macro and micro environments. The presence of both the government and industry in the nation's numerous economic operations defines the business climate in India. As a result, numerous national economic policies would encourage the expansion of both segments in diverse industries. The term "environment" refers to the entirety of all alive and pro components that have an impact on human life and its outcomes. Non-living or non-biological elements are water, land, sunshine, rocks, and air, whereas all live or biological ingredients do become animals, plants, forests, fish, and birds.based on the distance from the mean solution evaluation (EDAS) is a new and efficient MCDM is proper. In this way alternatives are preferred based on their distance from the mean solution is determined. From the analysis in which EDAS (Avg evaluation based on distance from solution) method is the best solution. Short range and negative the ideal is the solution with the longest distance from the solution determines, but of these distances the comparison is not significant. Procedures, Time, Cost, Profit Tax Starting a Business, Dealing with Construction Permits, Getting Electricity, Registering Property, Getting Credit, Paying Taxes. From the result it is seen that Dealing with Construction Permitsis got the first rank where as is the Getting Creditis having the lowest rank.the first ranking dealing with Construction Permits is obtained with the lowest quality of Getting Credit.

The Role of Large Corporations of Non-Ferrous Metallurgy in Providing Revenues of Regional Budgets Illustrated by Krasnoyarsk Territory (the public company ‘Norilsk Nickel’) and Irkutsk Region (the public company ‘OK RUSAL’)

Invariably high role of large tonnage and low-added-value business in economy of the Russian Federation stipulates topicality of such research. Big business reaching 78-80% of Russian GDP will continue playing the primary role, which will be backed by exchange rate in exporters’ interests and their raw material orientation. Iron and steel industry in Russia by budget, production and export significance yields only to oil and gas sphere. Ferrous and nonferrous metallurgy produces the most important construction materials for other industries and at the same time keeps up the demand for highly-qualified workers with rather high level of wages. The goal of the research is to identify the contribution of large companies of non-ferrous metallurgy to revenues of the Russian Federation budget system. For this end the authors analyzed accounts of companies with budget system on profit tax, on value-added tax, tax on individuals and tax on company property. Information base of the research was formed by works of home and overseas authors that show the role of large corporations in social and economic development of regions and countries, Rosstat data, information of the Federal Taxation Service on the Irkutsk region and the Krasnoyarsk territory, official annul and finance accounting of the public company ‘OK RUSAL’ and the public company ‘Norilsk Nickel’.

TAX REVENUE SOURCES AND THE NIGERIAN ECONOMY IN THE POST COVID PERIODS

The study examined the impact of tax revenue on the Nigeria economic growth between the periods of 2002Q1 to 2022Q4. The study covers the entire economic growth of Nigeria The tax revenue proxies considered are: Petroleum Profit Tax (PPT), Value Added Tax (VAT), Company Income Tax (CIT) and Custom and excise duties (CED) whereas economic growth was proxied with Gross Domestic Product (GDP). The study made used of secondary (Quarterly data) sourced from Planning, Research and Statistics Department (2020-2022); Financial Inland Revenue (2020 to 2022); CBN Statistical Bulletin (2020 to 2022). The result showed that, both Petroleum Profit Tax (PPT) Company Income Tax (CIT) had high adverse yet considerable effect on economic growth of Nigeria during the Post Covid-19 periods whereas Value Added Tax (VAT) and Custom and excise duties (CED) had high positive yet considerable effect on economic growth of Nigeria during the Post Covid-19 periods. Hence, the study conclude that, Tax revenues have mixed effect on the growth of the Nigerian economy during the Post Covid-19 Era. As such, policy makers must ensure that, revenue gotten from petroleum tax should be the fund obtained be properly channels. Lastly, the Nigerian government should ensure that companies that evade tax should be brought to book
 Keywords: Tax Revenue Sources, Nigerian Economy, Post Covid Periods.

TAX REVENUE SOURCES AND THE NIGERIAN ECONOMY IN THE POST COVID PERIODS

The study examined the impact of tax revenue on the Nigeria economic growth between the periods of 2002Q1 to 2022Q4. The study covers the entire economic growth of Nigeria The tax revenue proxies considered are: Petroleum Profit Tax (PPT), Value Added Tax (VAT), Company Income Tax (CIT) and Custom and excise duties (CED) whereas economic growth was proxied with Gross Domestic Product (GDP). The study made used of secondary (Quarterly data) sourced from Planning, Research and Statistics Department (2020-2022); Financial Inland Revenue (2020 to 2022); CBN Statistical Bulletin (2020 to 2022). The result showed that, both Petroleum Profit Tax (PPT) Company Income Tax (CIT) had high adverse yet considerable effect on economic growth of Nigeria during the Post Covid-19 periods whereas Value Added Tax (VAT) and Custom and excise duties (CED) had high positive yet considerable effect on economic growth of Nigeria during the Post Covid-19 periods. Hence, the study conclude that, Tax revenues have mixed effect on the growth of the Nigerian economy during the Post Covid-19 Era. As such, policy makers must ensure that, revenue gotten from petroleum tax should be the fund obtained be properly channels. Lastly, the Nigerian government should ensure that companies that evade tax should be brought to book
 Keywords: Tax Revenue Sources, Nigerian Economy, Post Covid Periods.

Tax Compliance (Active Tax Payers) and Non-Oil Tax Revenue in Nigeria: Exposition of Fiscal Exchange Theory and Expectation Proposition

The paper investigated the tax compliance (active tax payers) and non oil revenue in Nigeria in relation to fiscal exchange theory and expectation proposition. The study adopted ex post facto research design; secondary data for nineteen years (2003 - 2022) were collected from various issues of the Federal Inland Revenue Services (FIRS) statistical bulletin and annual reports. Tax compliances as regressand variable was measured with number of actual annual total non oil tax revenue in Nigeria and Tax compliances among active tax payers of company income tax (CIT), Petroleum profit tax (PPT), Capital gain tax (CGT), Value Added Tax (VAT) and Personal Income Tax (PIT) as regressors. The data was analyzed using multiple regression analysis to establish the relationship between the dependent and independent variables. The findings revealed that tax compliance have significant effect on boosting tax revenue generation and that tax default can cause significant variation in government revenue. The variable in the model is significant at the 5% critical level and the regression coefficient reveals that 72.8% of the total variation in revenue is accounted for by tax compliance with other variables in the stochastic term accounting for the remaining 27.2%. Specifically, Tax Compliance (Active Tax Payers) is significantly and positively related to Active Tax Payers on Value Added Tax (ATVAT) (1.827925 ), Active Tax Payers on Company Income Tax (ATCIT) (2.84599) and Active Tax Payers on Petroleum Profit Tax (ATPPT) (2.286043 ), while Tax Compliance (Active Tax Payers) is negatively and insignificantly correlated with Active Tax Payers on Personal Income Tax (ATPIT)( -0.236908 ) Active Tax Payers on Capital Gain Tax (ATCGT)( - 0.236908 ) . It is recommended that Federal Inland Revenue Service should open more offices across the federation to increase the ease of paying taxes, set performance targets for managers of tax offices and sanction for non-performance.

Tax benefits as a basic component of the investment tax expenditure management system in the region

The article investigates tax and budget components of the investment tax expenditure management system in the region with a focus on tax benefits and tax powers of the authorities. The information base of the study is the federal and regional legislation, publications in scientific journals, open data of the Ministry of Finance of the Russian Federation, and the Government of the Rostov Oblast. Following general scientific methods of knowledge were used as a methodological basis: comparison, systematic logical and semantic analysis, synthesis of theoretical and practical materials. It allowed to substantiate expediency of significant changes in tax component of the investment tax expenditure management system. The definition of tax exemption, which has not changed during the 25-year period, has been clarified. Tax powers of public authorities of the Russian constituent entities on property and profit taxes of organizations have been expanded. The abandonment of tax costs assessment has been carried out by their supervisors in favor of software product of the Federal Tax Service of Russia developed jointly with the Ministry of Finance of Russia. The results of the study can be used by the authorities when developing proposals to improve tax and budget legislation.

Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector

Environmental regulation is the responsibility of individuals, corporations, and other entities to prevent environmental damage or improve the tarnished environment. The Environmental law of every country works to protect the natural resources of land, water, air, and soil. There are research evidence that environmental regulation influences Corporate taxes. Economic deterrence theory acted as deterrent to threats of punishment for unwanted or illegal behavior. The fundamental concept of the theory is deterring the taxpayers into compliance by the risk of audit, penalty, etc. The objective of the study is to analyze the impact of economic deterrence theory and environmental regulation on corporate tax evasion, particularly petroleum profit taxes in Nigeria. The components of Economic deterrence theory (tax agents, tax complexity, tax knowledge) and environmental regulations are the independent variables and corporate tax evasion particularly PPT is the dependent variable of the study. It is quantitative research based on primary data which was collected from the oil and gas companies’ representatives. Structural Equation Modelling techniques were applied, and the outcome of the research is a positive and significant relationship between tax agents, tax complexity, tax knowledge, and environmental regulations on corporate tax evasion. The result further shows a positive but non-significant relationship between tax audits and perceived petroleum profit tax evasion. The study draws the attention of policymakers to formulate environmental regulations that are more robust, simple, and flexible, to reduce adverse effects of environmental damage on the economic growth and development of oil and gas-producing countries.

Effective means of legal regulation of foreign trade

The article proposes means of state-legal regulation of foreign trade, in particular legal, economic (in particular tax), political, financial and administrative instruments. The main shortcomings of the legislation are analyzed, which make it possible to effectively optimize taxation, carry out illegal export of capital and demand compensation from the budget. In order to avoid erosion of the tax base and profit shifting, a single object of taxation is proposed – value added, which is determined by the sum of factor incomes of the payers: wages fund and profit. Substantiated formation principle of the fair market value (price), which is equal to the sum of added value, VAT, charged on it, depreciation of means of production and costs, determined by the fair market value of goods/services, used in production. The established correspondence between the fair market price and the added value allows you to accurately determine the size of the tax base (VAT, personal income tax, profit tax and social contributions) and excludes any known methods of tax optimization. The amount of taxes paid determines the monetary equivalent of the added value and the increase in the sales price at each stage of production and distribution, which excludes the possibility of artificially reducing the tax base and/or transferring profits to jurisdictions with low taxes. The introduction of added value and its components as a single base of basic taxes and fees excludes weak capitalization and any other deductions from the tax base. The proposed definition of a single tax base significantly simplifies the administration of basic taxes and contributions and exhausts measures for the implementation of paragraphs 3, 4 and 5 of the BEPS plan.

Windfall Profit Taxes Across Europe: Have They Proved to be Effective for Taxing Windfall Profits in the Energy Sector?

In this article, the author provides details of the various windfall taxes that have been enacted in Europe in response to the increased profits of, in particular, the energy and banking sectors. The author describes the policy reasons that led Member States to agree on a windfall profits tax, how the tax has been implemented across European countries, the constitutional challenges and State aid issues that might arise in the context of EU law and various reasons for and against retaining such taxes.

Corporate tax evasion: Evidence from international trade

This paper investigates how firms misreport their imports and exports to lower their reported taxable profits and evade corporate income taxes (CIT), which I call the trade evasion channel. Based on correlations between tax rates and mirror statistics of trade flows between countries at the product level, I find evidence suggesting that firms under-report exports (sales) and imports (costs) simultaneously to lower reported taxable profits while maintaining consistent income statements. For a representative firm, the resulting elasticity of reported taxable profits is 0.24, which suggests that the trade evasion channel is quantitatively important. Multinational firms do not exploit this channel, nor do firms in countries with a large informal economy, where other evasion options are available.

Tax Audit and Tax Revenue: An Empirical Study of Federal Inland Revenue Service

This study examined audit tax and tax revenue in Nigeria by means of a causal study design on a population twenty six (26) Federal Inland Revenue Service (FIRS), field offices in south south geographical location of Nigeria. Questionnaire was distributed to three (3) management staff from each of the 26 FIRS field offices in south south Nigeria, given a total of 78 respondents that constitutes the respondents of the study. Data for analysis was collected through primary and secondary sources. Primary data was collected through questionnaire to respondents, while secondary data was collected from FIRS Planning, Research and Statistics Department, Central Bank of Nigeria (CBN) statistical bulletin, articles, magazines and other published studies for the period covering 2007-2019. A total of 78 copies of the questionnaire were produced and distributed, of which 73 copies (93.59%) were successfully retrieved. However, out of the 73 copies that were returned only 67 copies (85.90%) were valid and used for the analysis. The simple linear regression was used for analysis. The results revealed that, tax audit statistically and significantly has effect on petroleum profit tax, company’s income tax and value added tax. The study therefore concludes that, tax audit has positive significant effect on tax revenue in Federal Inland Revenue Service of Nigeria, and recommends that the Federal Inland Revenue Service should encourage, strengthen and give more attention to the tax audit department, focus more on the audit activities of the service. This will deter taxpayer’s against non-compliance and discourage tax evasion

Causality among Oil Revenue, Non-Oil Revenue, Fiscal Risk Factors and Budget Execution Phase in Relation to Debt Overhang and Crowding-Out Theories: Contending Gap Issues

We reviewed literatures on the complex causality among oil revenue, non-oil revenue, fiscal risk factors and budget execution phase in relation to debt overhang and crowding-out theory. The majority of papers surveyed study on investigated the long-run and short-run relationship between fluctuations of oil price ; direction of causality between total revenue and total government spending ; the dynamics of the tax revenue and expenditure nexus, explored the impact of oil prices volatility on the key factors of the government budget, analyse the relationship between public expenditure and debt —little research in the area of the impact of oil price fluctuations on key macroeconomics variables. The evidence provided by the empirical literature is that there are indeed heterogeneous responses to position on complex causality among oil revenue, non-oil revenue, fiscal risk factors and budget execution phase in relation to debt overhang and crowding-out theory. It is detected that most study reviewed did not disintegrated relevant revenue: oil revenue (upstream oil revenues, downstream oil revenues, petroleum profit tax(PPT)); non-oil revenue (company income tax (CIT), value added tax (VAT), personal income tax ) and budget risk factors: oil price volatility (OPV)(OPEC Spot OPV, Brent OPV, West Texas Intermediate OPV), public debt (external public debt, domestic public debt), debt servicing (external debt interest service and domestic debt interest service) on budget execution phase (public expenditure: capital budget expenditure and recurrent budget expenditure). It is recommended that research effort should be made in answering the following research questions: what is the effect of oil revenue on budget implementation (public expenditure: capital expenditure and recurrent expenditure)? How non-oil tax revenue is correlates with budget implementation (public expenditure: capital expenditure and recurrent expenditure)? Of what effect is oil price vola

Effect of Treasury Single Account (TSA) on Tax Revenue Collected in Nigeria

The study examined the effect of Treasury Single Account (TSA) on tax revenue collected in Nigeria. Company income tax, value added tax, and petroleum profit tax formed the dependent variables of the study. The study adopted an ex-post-facto research design, covering the period between 2011 and 2019. Secondary data were extracted from the Federal Inland Revenue Service website. Paired Sample T-test technique was used for the data analysis. In line with the specific objectives of the study which was to ascertain the effect treasury single account implementation on company income tax, value added tax, and petroleum profit tax revenue collected in Nigeria, it was revealed that TSA has a positive and significant effect on company income tax and value added tax revenue collected in Nigeria. TSA has a negative and insignificant effect on petroleum profit tax in Nigeria. This implies that TSA implementation has increased company income tax and value added tax collected in Nigeria. It is recommended therefore that the continuous use of TSA should be guaranteed by the government. This is because it led to an increase in company income tax collection in Nigeria. Every factor that works against its continued existence should be subdued. They should ensure that tax authorities continue to comply with TSA rules in remittance of value added tax collected to the consolidated revenue fund. They should ensure that Nigerian National Petroleum Corporation (NNPC) and other oil and gas regulating authorities comply fully to the dictates of TSA.

Monopolistic competition, rising markups, and optimal taxation of participation

AbstractThis study explores the optimal taxation of participation within a monopolistically competitive product market that exhibits increasing markups. Individual labor supply responds along both intensive and extensive margins. The government simultaneously optimizes a nonlinear Mirrleesian income tax scheme, a flat profit tax rate, and a flat unemployment benefit. It is shown analytically that the monetized welfare cost of an increase in unemployment benefit is higher under monopolistic competition compared to under perfect competition. Nevertheless, numerical simulations suggest that the optimal unemployment benefit increases in response to greater markups when the government simultaneously optimizes all of its tools. The reason is that, along with a higher profit tax, rising markups require a decline in marginal income taxes. Lower marginal income taxes relieve the extensive margin distortions and accommodate an increase in the unemployment benefit. Accordingly, optimal nominal participation taxes remain approximately unchanged for the lower half of the ability distribution. For the upper half, the decline in income taxes outweighs the increase in the unemployment benefit, leading to lower optimal nominal participation taxes.

The Importance of the Reliability of Accounting Information in Determining Taxable Income

Purpose: The aim of this research to achieve the possibility of achieving a positive interaction between accounting and tax and attention to the development of accounting standards and their adaptation to local tax legislation, and the importance of the reliability of accounting information contained in the financial statements with the International Accounting Standard (12) for the purpose of reaching tax profit based on accounting profit is increasingly important. Theoretical framework: There is a lack of reliability in the financial statements that represent the outputs of accounting, in other words that the accounting information does not spare the aspect of honest representation of business results and financial position and it does not clearly reflect the nature of the taxpayer's activity, as well as the above there is a difference between accounting profit and tax profit. Design/Methodology/Approach: The first section is the research methodology, the second section is the theoretical aspect, accounting information, the third section is the practical side, and the fourth section is the conclusions of recommendations in addition to the sources of research. The research community was in the General Authority for Taxation Companies Section and the research sample was for four local private shareholding companies, which are as follows: 1. Modern sewing company, 2. Iraqi Company for Carpets and Furnishings. 3. Al Mansour Company for Pharmaceutical Industries, Medical Supplies, Cosmetics and Sterile Water. 4. Baghdad Soft Drinks Company. The research sample consisted of a group of Iraqi private companies listed on the Iraqi Stock Exchange and the industrial sector selected private companies from among the rest of the sectors for the following reasons: 1. Of the companies listed on the Iraqi Stock Exchange within the industrial sector, the number of listed companies according to the reports of the Iraqi Stock Exchange (21) companies. 2. Of the traded companies, where the volume of traded shares according to the reports of the Iraqi Stock Exchange for the year 2020 (3140.8) million shares and a value of (10526.8) million dinars as it reached in 2021 (2913.5) million shares and the value of (9022.9) million dinars. Findings: The research focused on measuring the reliability of accounting information through measures of the quality of accounting profits of the companies of the research sample by adopting the reliability property to measure the degree of reliability of the financial statements of companies before and after the adoption of the application of the International Accounting Standard (IAS 12) in accordance with the local accounting rules adopted in the presentation of financial statements. The use of statistical methods in measuring the reliability of accounting information within the financial statements of private shareholding companies dealing in the Iraqi Stock Exchange, in accordance with the requirements of the application of the International Accounting Standard (IAS 12) income taxes. Study the requirements for the application of the International Accounting Standard (IAS 12) on income tax and its impact on the determination of taxable income. Research, practical & social implications: The accounting outputs, which are represented by the financial statements (final accounts and balance sheet) are the basis on which to rely when determining taxable income to complete the tax accounting process, and it is normal that the state of dependence on those accounting outputs (financial statements) depends on the degree of reliability of those outputs for the tax administration, and it is worth mentioning thestate of dependence on those accounting outputs (financial statements). Originality: the value of the study was to indicate the extent to which the reliability of accounting information affects the determination of taxable income through the measure of reliability of accounting information as follows: Reliability, Test the search measurement tool, Test the normal distribution of the reliability scale of the companies research sample, Testing research hypotheses, Analysis of regression results for the reliability of accounting information of the companies research sample, Checklist analysis.

Industry characteristics of property tax calculation in oil and gas sphere and impact on enterprise competitiveness (in the order of discussion)

As it is known, according to the tax legislation, the property tax is calculated from the average annual residual value of fixed assets of the enterprises. However, since in enterprises, particularly in the oil and gas industry, in addition to commercial activity, non-commercial activity is also the property of the enterprise in related areas, the property tax calculated for those properties plays a role in the financial and economic activity of the enterprise as well. At the same time, the calculation of property tax on depreciable and non-depreciable assets (property) (if those assets are classified as fixed assets and are shown as fixed assets in the balance sheet of the enterprise and in Appendix No. 1 of the profit tax declaration) is also related to the loopholes in the tax legislation, leads to the additional problems. On the other hand, the property tax calculated for the preserved oil wells in the oil and gas industry, as well as the unused (discontinued) processing facilities in the oil refineries and, conversely, the property tax calculated for the new facilities and equipment purchased or installed as a result of the modernization, technological innovations, as it is important how the property tax calculated for the property used in other non-oil product producing and service enterprises of the oil industry affects the competitiveness of the enterprise, the paper reviews the role of calculated or to be calculated property tax in the current and future financial-industrial activity, and the directions of its impact as well.

The Moderating Role of Inflation on the Relationship Between Direct Taxes and Economic Development in Nigeria

This study investigated the moderating role of inflation on relationship between direct taxes and economic development in Nigeria. The specific objectives were to investigate the relationship between personal income tax and real gross domestic product, ascertain the relationship between company income tax and real gross domestic product, determine the relationship between petroleum profit tax and real gross domestic product, investigate the relationship between personal income tax and infrastructural development, ascertain the relationship between company income tax and infrastructural development, determine the relationship between petroleum profit tax and infrastructural development, ascertain the moderating effect of inflation rate on direct taxes and economic development of Nigeria. The study anchored on expediency theory while correlational and ex-post facto research designs were adopted for the study. The population of the study was direct taxes revenue data and economic development in Nigeria from 1991 to 2020 and secondary data were sourced from Annual statistical bulletin of CBN, Federal Inland Revenue service (FIRS) and National Bureau of Statistics. Descriptive statistics and correlation matrix were used to analyze the research questions while multiple regression was used to test the hypotheses. The result of the study shows that PIT has a positive and significant relationship with infrastructural development in Nigeria while an insignificant relationship with RGDP; CIT has a strong positive and significant relationship with RGDP and infrastructural development in Nigeria; petroleum profit tax positively and insignificantly affects RGDP and infrastructural development. The study recommends among others that government parastatals, multinationals, conglomerates and companies in the country should not engage any vendor who does not have a TIN number. This will go a long way in reducing tax evasion; taxes should be remitted via an e-payment system or via direct payment to the various tax authorities’ accounts.

IMPACT OF DEPRECIATION EXPENSES ON FINANCIAL PERFORMANCE OF COMPANIES

A company’s or enterprise’s financial performance can be analysed by the obtained net results of current year. It is not significant because it always takes the profit taxes and the financial elements. The enterpice’s actual effort is difficult to ascertain in few cases. The results of an enterprise’s financial and business performance is always dependent on the companies fiscal and financial policy, but it also takes in account depreciation, amortization and provisioning policy and also the important one the inventory valuation methods. The main question for the enterpreneurs and owners is that ‘’ which depreciation method is effective and efficient? Will this effect their profitability?. From the view point of my research paper I would propose the ‘methods of depreciation’ the fixed assets & comparing it with the financial performances of the companies, specially on the results. In this research paper, I have primarily used the empirical data collected from various sources for my research value, from studies, stastical yearbooks, literacture, annual financial statements of companies.

Features of accounting for advertising expenses in the tax accounting of medical organizations

The article is devoted to the analysis of the peculiarities of accounting for advertising expenses in the tax accounting of medical organizations. The criteria for classifying expenses as advertising are shown, it was noted that part of advertising expenses is rationed — their size should not exceed 1% of sales revenue. We have discussed in detail the types of advertising expenses that are not normalized. Practical situations are given that describe specific examples of classifying expenses as advertising, normalized or non-normalized. We analyzed cases that determine the amount of normalized expenses that can be taken into account for profit tax purposes, it was noted that the organization needs to monitor whether the costs of normalized advertising exceed the limit for the tax period and, in order to optimize taxation, plan the time and costs of normalized advertising in such a way that it is possible to take into account the maximum possible amount of advertising costs in the expenses.

Historical aspects of the profit category formation and its modern interpretation for enterprises of the hotel and restaurant business

The study purpose is (1) to examine the historical aspects of the economic category “profit” formation, (2) to determine the modern characteristics of the category "profit" and (3) of the profit formation features for enterprises of restaurant and hotel business. A systematic review of scientific literature on the topic was used to study the historical aspects of the profit category formation and of its current state. In order to assess the profit economic importance as a basis for the state development, time series analysis was used, as well as a graphical method based on Excel. Modelling was applied to assess the impact of factors on profit formation in the hotel and restaurant business. The results of the analysis of the scientific literature referred to the topic of the study show the ambiguous attraction of the profit category in the historical aspect of its development. Profit is a multifaceted and complex category that has constantly evolved from antiquity to modern times. The meaning of profit is evidenced by the fact that it is the main source of financial resources at the micro- and macro- levels. Income tax is important for formation of state budget revenues. The analysis of profit tax revenues and its share in Ukraine’s consolidated budget shows that the profit tax share in the revenues structure of the Ukraine consolidated budget fluctuates over the past 7 years within the range of 6–11%. Hotel and restaurant businesses belong to the service sector. At the same time, restaurant enterprise accomplishes the functions of production, trade, and service provision. An analytical study of the influence of factors on the formation of profit requires a qualitative analytical model that would take into account the specified specifics. Such a model should be based on a marginal approach.