Principles Of Taxation Research Articles

Interrelationship of tax liability with the principles of tax law

The article examines the relationship between tax liability and the principles of tax law in the current legislation and regulatory requirements of the European Union. The object of research is social relations that regulate the emergence, change, fulfillment, termination of tax liability in the context of the principles of tax law. The subject of the research is the norms of the Constitution of Ukraine, current tax legislation and other normative acts. During the research, various methods were used, in particular: historical-legal, systematic, comparative-legal, formal-legal, teleological, general scientific methods: analysis, synthesis, induction, deduction. It is indicated that the tax liability is the taxpayer's duty to pay the state a certain amount, which the taxpayer independently calculates and reflects in the tax return. It is noted that the principles of tax law and the principles of tax liability and taxation are mutually related and are reflected in regulatory acts of tax legislation or other regulatory documents. The Tax Code of Ukraine specifies the following principles: universality of taxation; equality of payers before the law, inevitability of liability; presumption of legality of the taxpayer's decisions: fiscal sufficiency; social justice; neutrality of taxation; stability; uniformity and convenience of payment; a unified approach to setting taxes and fees. Separate principles are defined in the Constitution of Ukraine - the principles of rule of law, legality, etc. The legal principle of the economy of taxation is manifested in the requirement for the economic basis of income taxation. In the tax law of the countries of the European Union, the presumption of legality of the taxpayer's decisions is expressed through the rules on the inadmissibility of various forms of tax abuse, which have a codified status. The development of these principles in the tax law of the member states of the European Union has recently taken place in the form of determining the criteria for the application of scientific doctrines in model taxation situations, based on specific court decisions in cases on determining the amount of tax liability.

Innovative Development of tax Administration in Russia

The use of modern innovative technologies raises tax administration to a qualitatively new level of development, which determines the relevance of the study. At the same time, the digital transformation of the tax system should be based on classical principles of taxation, meet the interests of tax authorities and taxpayers, and prevent tax risks. The purpose of the study is to identify trends of tax administration in Russia and to develop a forecast of its innovative development from the standpoint of classical principles of taxation. To achieve this goal, it was necessary to solve the following tasks: problem statement; review of the main information technologies used by the Federal Tax Service of Russia; study of information exchange of data; determination of the impact of innovative development of tax administration on the activities of economic entities. In preparing the article, the authors used methods of analysis and synthesis of empirical data of information platforms, as well as a systematic approach and a method of interpreting the results during scientific research. The novelty of the paper lies in the author’s view of the prospects for the innovative development of tax administration. The results of the study proved the high efficiency of the digital technologies used. It is shown that the innovative development of administration strengthens tax control, increases budget revenues, increases the role of the state in the field of taxation. It is concluded that innovative tax administration significantly affects the behavior of taxpayers, causes their concern about the growth of tax risks. The completed forecast of innovative development of tax administration showed a high probability of changing the status of an organization to an individual entrepreneur, loss of tax revenues from developing e-commerce.

CORPORATE TAXATION THROUGH THE INDIAN PRISM: CONSEQUENCES OF GST AND DTC

The Indian taxation landscape has witnessed significant reforms in recent years, with the introduction of the Goods and Services Tax (GST) and proposed changes in the form of the Direct Tax Code (DTC). This comprehensive analysis explores the dual facets of these reforms and their consequential impact on corporate taxation in India. The study encompasses a detailed examination of the implications of GST implementation and the potential effects of the impending Direct Tax Code on corporate entities. The Goods and Services Tax (GST) was introduced in India in July 2017, heralding a paradigm shift in the taxation system by replacing multiple indirect taxes. Simultaneously, the Direct Tax Code (DTC) has been proposed as a comprehensive reform of direct taxes, aiming to simplify and rationalize the existing tax structure. This analysis delves into the impact of these reforms on corporate taxation, considering the intricate interplay between indirect and direct taxes. The implementation of GST streamlined the indirect tax system, reducing cascading effects and enhancing overall tax efficiency. This, in turn, has had a direct impact on corporate taxation by simplifying compliance procedures and reducing the burden of multiple taxes on businesses. The analysis explores how these changes have contributed to increased tax compliance among corporate entities. GST introduced the concept of Input Tax Credit (ITC), allowing businesses to offset taxes paid on inputs against their final tax liability. This section assesses how the availability of ITC has influenced cost management for corporations, promoting a more transparent and efficient taxation system. The GST regime prompted corporations to reevaluate their supply chain structures to optimize taximplications. The analysis investigates how companies have adjusted their operations to align with the GST framework, leading to improved logistics, reduced lead times, and cost savings. The proposed Direct Tax Code envisions revisiting tax slabs and rates, potentially altering the corporate tax landscape. This section examines the anticipated impact of changes in tax rates on corporate entities, exploring the implications for businesses of varying sizes and sectors. The DTC proposes a reevaluation of existing tax incentives and deductions. The study analyzes the potential impact on corporate decision-making, investment patterns, and overall economic growth. It delves into the implications for sectors currently benefiting from specific incentives. The DTC aims to align international taxation principles with global standards, impacting the taxation of multinational corporations operating in India. The analysis assesses the potential challenges and opportunities for such entities, considering the implications for transfer pricing and cross-border transactions.

The current state of environmental taxation in Ukraine

The foundational principles of environmental taxation, serving as a cornerstone for driving sustainable development, have been further elaborated upon. It has been ascertained that the current environmental tax framework in Ukraine is not effectively fulfilling its intended roles of incentivizing environmentally responsible practices and providing compensation for environmental impacts. Additionally, the business community frequently perceives tax hikes as nothing more than an additional fiscal burden. In light of these findings, a set of recommendations has been formulated to enhance the efficacy of environmental taxation in its capacity as a catalyst for sustainable development, drawing inspiration from best practices observed internationally. These proposed enhancements encompass a range of strategies. They include refining the conceptual framework of the environmental tax, particularly with regards to CO2 emissions, and modernizing other categories of environmental taxation. Another vital suggestion involves adjusting the allocation proportions of tax revenues from environmental taxation among various levels of government budgets. This adjustment seeks to foster a more consistent and coordinated approach to environmental tax policy. Moreover, there is an emphasis on optimizing the utilization of tax revenues generated from environmental taxation, alongside the reinforcement of comprehensive compliance monitoring and the introduction of a stimulus system geared towards facilitating a gradual shift towards a carbon-free economy. Implementation of these recommendations holds the potential to elevate environmental consciousness and overall tax effectiveness in Ukraine. This, in turn, can attract businesses to invest in environmentally friendly technologies and production processes. In the long term, these initiatives aim to stimulate the ecological transformation of businesses and instill a culture of responsible energy resource utilization. Such efforts are poised to contribute to the gradual transition of the economy towards sustainability, fostering innovation in the post-war era while taking into account the interests of all stakeholders involved.

Modern information technologies in law education: Teaching innovative principles of taxation of financial assets based on international legal experience

Modern information technologies in law education: Teaching innovative principles of taxation of financial assets based on international legal experience

Tax Regulation of Countries in the Framework of Greening Business (using the example of the Russian Federation and the EU)

In the past three decades, the role of environmental protection in the environmental and climate agenda, which shapes the trends of “green” economic development, has been continuously increasing. The purpose of this study is to examine this issue in the context of the experience of the European Union (EU) and regulatory principles of taxation to prevent the effects of climate change. Using the example of the EU and the Russian Federation, the reaction of a system for economic regulation of greenhouse gas emissions, which is at the initial stage, is considered. A SWOT-analysis of Russia’s “green” exports to the EU countries has been carried out, which contains forecasts of a decline in demand for Russian oil and oil products, coal, gas and metals and an increase in demand for electricity from low-carbon sources. Taking into account the extremely high carbon intensity of all Russian exports and its product and country structure, it is suggested that notable damage may occur after 2026 if the Carbon Border Adjustment Mechanism (CBAM) expands its product mix and scope. In the presence of significant risks for the Russian Federation in the context of hydrogen energy development, the drivers for increasing competitiveness and the corresponding positions of our country in the conditions of decarbonization are determined, PEST-analysis of the Russian economy on the way to the “green” market course is carried out. The practical significance of the study lies in the proposal to use the experience of tax regulation in the EU countries as part of greening business in the Russian economy.

The tax system is based on the principle of the source

The free movement of capital, goods, services and workers between countries creates new challenges for national tax systems. The problem is complicated by the growing importance of intra-firm cross-border trade and complex production chains, the growing contribution to added value of hard-to-assess and easily mobile intangible assets, as well as the growing digitalization of the economy. The interaction of national legislation, international norms and bilateral treaties has formed a very complex international tax architecture. This makes it necessary to distinguish between the countries of origin, residence and destination. The paper analyzes the problems of building a tax system based on the source principle, defines the criteria for identifying the source of income, which is equated with added value, which is determined by the sum of factor incomes – wages and profits. The transition to the application of the balance sheet method of calculating added value automatically identifies the source of income by the place of payment of wages and receipt of profit. The country in which the added value is created clearly determines the place where this value should be taxed. The place of taxation of added value and its components does not depend on the composition and origin of capital, the use of intangible assets, the ownership of shares and any components. All these features of capital must be used in the distribution of the remaining profit after paying all taxes, contributions and fees provided by the law of the source country. Due to the uncertainty of the concept of “resident” and the possibility of residence in many jurisdictions at the same time, the principle of taxation of distributed profits (dividends) based on residence should be replaced by the principle of citizenship. The application of the proposed changes to the Tax Code of Ukraine makes it impossible to transfer profits.

Implementation of the mechanism of systemic risk internalisation in the deposit market (pigou tax principle)

The deposit guarantee fund’s rate cap mechanism was supplemented by a systemic risk fee based on the Pigou tax principle. The additional systemic risk fee was introduced to curb overly aggressive price competition in the deposit market by creating additional explicit financial costs that can offset the gains to individual banks from increasing their deposit market share. However, the existing inelasticity of the implemented mechanism, manifested by the lack of stable pressure across the entire range of rates, necessitates its reform. In this article the authors reveal the details of the implemented mechanism of internalisation of systemic risk in the deposit market, the reasons that prompted its implementation, assessment of its success and ways of further reform.

The Metaverse: Problem of Adapting Tax and Legal Structures

The article is devoted to the analysis of theoretical and legal aspects of income taxation and transactions in the metaverse. The scientific interest of the author is connected with the problems of adapting tax and legal structures to economic relations, which are generated by unique technologies of the virtual world. Purpose: to reveal the legal nature of the metaverse economy for tax purposes; to identify the most common problems associated with the application of tax legislation. Methods: the study is based on the methods of comparison, analysis, synthesis, generalization, and formal-logical method. Results: analysis of the bases and principles of taxation of income and transactions in the metaverse (income tax, value added tax), analysis of the tax consequences of specific situations, formulation of basic principles of taxation. Conclusions: the conducted scientific analysis confirms that national regulators and tax authorities are only at the stage of understanding the problems that arise in the metaverse, including issues related to determining the moment of income, evaluating transactions for the exchange of virtual goods for virtual or fiat currencies. The author comes to the conclusion that the technical impossibility of flawlessly accurate calculation of the tax base and determination of the source of income in a space of which anonymity is an integral component should not serve as a basis for non-taxation. The solution to the problem of creating tax and legal structures focused on the metaverse consists in taking into account the specifics of legal situations (a hybrid approach), using presumptive taxation in segments of high risk of losses for the national tax base, introducing a special regime for cases when income is received outside of entrepreneurial activity, is insignificant, and is of a one-time nature. The article points out the need for tax rules to comply with the basic principles of legislation on taxes and the inadmissibility of excessive tax burden.

TAX TRANSPARENCY AS ESSENTIAL PRECONDITION OF THE MODERN TAX PAYMENT ADMINISTRATION SYSTEM

Introduction. Modern challenges in the field of administration of tax payments have become especially acute for Ukraine in the conditions of the outflow of human capital and the loss of economic potential. Under such conditions, the role of tax transparency is decisive, because during the implementation of the administration process, it is a necessary prerequisite for the implementation of the basic principles of taxation - fairness and certainty. The purpose of this article is to determine the place of tax transparency in the tax payment administration system. Results. The evolutionary aspect of the formation of the definition was studied and the author’s definition of the term “tax transparency” was given. The place of tax transparency in the system of administration of tax payments in the context of the implementation of the administration of tax payments is determined, taking into account potentially possible scenarios of the development of events and actions on the part of taxpayers and tax administrations. The current state of implementation of tax transparency in Ukraine in comparison with other countries is studied. The vector of future necessary transformations of relations between taxpayers and the tax service in Ukraine for the implementation of the strategy of tax transparency is outlined. Conclusions. The dynamics of the development of international taxation, especially in the modern realities of the development of public finances of Ukraine, requires a rethinking of approaches to the process of implementing tax administration. The study of directions for increasing the efficiency of the administration process is the subject of further scientific research through the implementation of tax transparency, in particular, by building a close relationship and trust between taxpayers and the tax service.

Airbnb jako platforma noclegowa a aspekty podatkowe

Airbnb has long been one of the leaders in providing accommodation worldwide, but there are still a few tax issues related to Airbnb without clear interpretation. The article aims to research, from the taxation point of view, the activity of providing temporary accommodation using the internet platform Airbnb. To evaluate such a taxation area, it is necessary to analyze the current legal regulation in the field of tax law with some possible legal recommendations de lege ferenda. For this article, the prime source of law is the Czech Republic tax law, but some of the research is also valid internationally, based on commonly used tax principles. The central point of the article, still relatively unclear in everyday practice, is the tax obligations (income tax and value-added tax) of accommodation providers using this platform. The article also includes some comparisons with foreign legislation. The author wants to point out possible facts that need to be considered when regulating Airbnb in the field of tax law.

상속세 및 증여세법상부동산 시가적용에 관한 최근 과세 쟁점

The basic structure of the assessment of property under the current inheritance and gift tax law is a simple one in which it is based on the market price, but in cases where it is impracticable to calculate the current market price, complementary valuation methods are used as an exception. However, the abstractness of the concept of the market price and what specific extent to which it should be recognized as the market price are complex and difficult issues. Because of this, many controversies arise between taxpayers and tax authorities.
 With the purpose of the improvement of fair taxation, Korea's inheritance and gift tax law has continuously expanded the scope of what can be recognized as the market price based on the principle of the market price. This reflects the reality that there is an inevitable conflict of interest between taxpayers who prefer complementary valuation methods due to the property valuation method of the inheritance and gift law, which allows complementary valuation methods to be exceptionally applied only in cases where it is impracticable to calculate the current market price and the realistic price rate of the officially assessed real estate price that is far below the market price, and tax authorities.
 The value recognized as the market price under the current inheritance and gift tax law can be divided into four categories, which are the relevant property and the case value for similar property within the principle of assessment period, and the relevant property and the case value for similar property within the extended evaluation period.
 This study deals with ‘the application of similar case values to apartments, etc.’ which is controversial regarding the scope of market recognition and ‘whether the appraised value requested by the tax office after the reporting date for non-residential real estate, etc. is recognized as market price or not’ targeting real estate, which accounts for a high proportion of inherited and gifted properties. In relation to this, there are many criticisms that it is not only against the principle of fair taxation, but it can also infringe on the taxpayer's predictability in terms of that excessive taxation is imposed on some taxpayers for properties with the same burden due to the existence of a sale price of similar property traded by another person by chance or an appraisal request based on the arbitrary judgment of the tax authorities, etc.
 It is not easy in reality to establish clear and consistent standards that all taxpayers can agree on when calculating the market price of inherited or gifted property whose ownership is transferred gratuitously. However, it is essential that the tax authorities continue to make efforts to accept criticism of existing taxation practices as article 15 of the enforcement rules of the inheritance and gift tax law legislate the scope of similar property in apartments in detail.
 This study analyzed major issues in taxation practice by analyzing the provisions of the inheritance and gift tax law and recent precedents regarding the scope of provisional recognition of the market price and sought ways to improve them. The main tax issues in applying the case value for similar property to apartments, etc. are; first, exclusion of application of the case value for similar property if there is a case value for the relevant property, second, the period of market recognition for the case value for similar property, third, criteria for judging similarity, and fourth, whether there are special circumstances for price fluctuations.

A Comparative Analysis on Economic Roles of Government and Principles of Taxation between Public Economics and Siyasah Shar‘iyyah

This research is an exploratory study on the similarities and differences of the justifications, objectives, roles of government and principles of taxation between public economics and siyasah shar‘iyyah. It aims to contribute towards integration of knowledge between modern economic theories and Islamic heritage in public economics. Despite similar focus on governance and social welfare, there is a lack of comparative study between public economics and siyasah shar‘iyyah in the literature. The research utilizes qualitative analysis on relevant textual materials on public economics and siyasah shar‘iyyah to identify and compare the major themes in terms of arguments for the establishment of a government, its economic objectives and roles, and taxation principles. The establishment of a government in public economics is based on the need to balance between efficiency and equity, address market failures, and provide public goods. Siyasah shari‘iyyah argues for a government based on fulfilling maqasid shari‘ah, uphold justice, and protect the rights of people. The principles of taxation in public economics often emphasize efficiency, equity, revenue sufficiency, neutrality, and administrative feasibility. In contrast, the principles of taxation in siyasah shar‘iyyah prioritize justice, prohibition of exploitation, funding public services, transparency and accountability, and wealth distribution in accordance with Islamic values. Originality/Value: The advancement of Islamic economics requires the integration of modern economic knowledge with divine revelation. Since public economics is a specialized subfield within economics, the integration efforts with siyasah shar‘iyyah have been notably deficient. This study aims to address this gap by undertaking a comparative analysis of fundamental principles and objectives between public economics and siyasah shar’iyyah.

Outer Space: The Final Frontier of Taxation

As the pace of commercial space exploration quickens, the question arises: is the global tax framework equipped to handle the complexities tied to revenues from outer space? The very nature of these revenues, derived from a deemed sovereign-free source, clashes with traditional tax principles like the source and residence doctrines. While the Outer Space Treaty, accepted by the majority of countries, bars any claims of sovereignty in space and complicates taxation, countries like the United States and Luxembourg have introduced domestic laws granting their residents rights over resources retrieved from space. Additionally, emerging space industries bring to light challenges in areas such as transfer pricing and satellite taxation, highlighting the pressing need for international consensus on these intricate tax matters.

Rationality of the Tax System and Taxation Principles in the Context of Contemporary Fiscal Crisis (Analysis from the Perspective of the New Institutional Economics)

Abstract The paper presents, in the synthetic way, the issue of the rationality of the tax system and taxation principles in relation to the clearly visible fiscal crisis in the 21st century caused by, among others, COVID-19 pandemic. The analysis which is theoretical (descriptive, comparative) was carried out by using tools indicated in the area of New Institutional Economics (NIE). Attention was devoted primarily to the importance of specific institutional arrangements, broadly understood as the “rules of the game” applicable in the political and economic spheres, and related to the problems of public finances. Research has shown that the appropriate design of tax rules may contribute, to some extent, to limiting the fiscal crisis. Tax policy, and even more broadly, fiscal policy, may determine the formula in which the economic achievements regarding compliance with tax principles and fiscal rules can be implemented. What is primarily important is the legal framework (one of the most important formal institutions) within which state policy in the field of public finances should be implemented.

Economic interests, taxation and justice

Methods. During the research, the following methods were used: logical and historical – when studying the evolution of thinkers’ views on the concept of justice in the context of taxation; abstraction – when defining the category «justice in taxation»; dynamic series – when determining modern trends in the dynamics of tax revenues to the state budget; general and specific – when comparing the taxation structure of some countries, which distinguish the creative economy from other types of economic systems; analysis and synthesis – when forming a categorical series of related concepts. Results. The article defines the role of social justice as one of the fundamental principles of taxation in ensuring tax modernization of Ukraine. The contradictory nature of concepts of justice applied in the field of taxation was revealed, the concept of «justice in taxation» was defined. Modern trends in the dynamics of tax revenues to the state budget of Ukraine are singled out, their structure is presented in both absolute and relative dimensions. A comparison of the positions of Ukraine in terms of the structure of collected taxes with the OECD countries was carried out. It was concluded that the structure of tax revenues of our state reflects the world trend regarding the spread of VAT, but the share of collected taxes on consumption in Ukraine is higher, while the share of taxes on income is lower compared to OECD countries. It is emphasized that the best theory of taxation needs effective implementation. Therefore, the development of tax policy should carefully consider the administrative aspect of taxation. Novelty. The role of the principle of justice in the fiscal menu of the times of martial law has been defined, proposals have been made regarding the directions of reforming the taxation system in Ukraine, namely: progressive taxation of the incomes of individuals, elimination or limitation of unequal opportunities for tax evasion and improvement of administration. Practical value. Proposals regarding ways to improve the taxation system in Ukraine in the context of justice can be useful in forming the foundations of the state fiscal policy, as well as forming the perception of the Ukrainian tax system as fair by those to whom it applies.

Possibilities of the Introduction of a Financial Transaction Tax in Germany: Comparison and Evaluation on the Basis of the Italian and French Transaction Tax With Regard of the EU Taxation Principles

This article evaluates the financial and economic implications of implementing a stock financial transaction tax (FTT) in Germany, setting aside the political dimensions prevalent in European discussions. It finds that an FTT decreases market efficiency and does not aid in stabilizing the financial system. Observations from France and Italy, where FTTs yielded revenues below projections, suggest that such a tax might be economically unfeasible for Germany. The study investigates whether a national FTT targeting transactions of German company shares on domestic exchanges—and levying the tax on the purchaser—conflicts with European Union principles, especially the free movement of capital as stated in Articles 63-65 of the Treaty on the Functioning of the European Union (TFEU). Moreover, it scrutinizes the compatibility of the proposed Franco-German cooperative FTT with German constitutional law and whether the financial sector’s contribution to the public good justifies the tax base under the Basic Law’s tax typology.

The Single Top-Up Tax Principle: Justification, Content and Functions upon the Design of QDMTTs

The present contribution advances the “single top-up tax principle” as a guiding principle for the design of qualified domestic minimum top-up taxes (QDMTTs) by the Inclusive Framework (IF) and by host jurisdictions. This article, which is intended as a critical assessment of the agreed administrative guidance on the QDMTT, generally addresses the justification, content and functions of the single top-up tax principle. It considers both the design of rules on the QDMTT by the IF and implementation issues for host countries, within the permissible range of features for a QDMTT.

Optimization of forestry indirect and direct taxation in sustainable development conditions

The indirect and direct taxation mechanism is examined in the article. It is determined that a significant place in total income part of the Ukraine’s state budget is occupied by indirect taxes, but the larger share falls on direct taxes. The structure and dynamics of indirect taxes in budget of Ukraine were carried out. The biggest disadvantages of the taxation existing system are established. It is suggested to add new principles to the legislative principles of taxation, their compliance will strengthen the country’s tax system. The indicators of the tax burden and profitability of three business forestry entities are analyzed. It was established the existence of a closeness between the tax burden and the financial results of forestry companies via using the coefficients of correlation and determination. Ways to improve indirect and direct taxation in Ukraine in terms of some indirect taxes are proposed (VAT, excise tax and toll). The problems of applying the environmental tax in Ukraine are identified and ways to eliminate them are suggested. The new formula for calculating the single forest tax is developed. The advantages of its use are substantiated.

An Old song in a New Way: About the Progression in the Personal Income Tax

The issues of choosing between proportional and progressive taxation of personal income and assessment of the principle of fair taxation in relation to these methods accompany the centuries-old history of world tax policy, which is the relevance of the research, being the subject of discussions of Russian and foreign scientists. The purpose of the study is to develop the idea of taxation of income of the population in Russia, taking into account the principle of fair taxation. The theoretical objectives of the study include an analysis of the validity of the method of taxation chosen, as well as an analysis of the progressive method of taxation, which allows for a fair redistribution of income through the progression of rates and an adequate system of tax deductions. The practical objectives of the study are to study the influence of income taxation methods on the formation of budget revenues and incomes of the population, to assess the “shadow” fiscal potential of income, to determine the level of demand and significance of tax deductions. As a result of the research, it has been scientifically proven that proportional taxation and weak progression discredit the principle of vertical equity, lead to a hidden progression in the withdrawal of income, have no obvious positive effect on capital outflow and, in combination with insurance premiums, affect the size of the potential tax base. The practical significance of the study is to develop concrete proposals for the methodological development of personal income tax through differentiated tax deductions, tax mechanisms for strengthening the institution of family and marriage, and the expansion of the tax base.