Ukrainian Tax Research Articles

Підходи до акцизного оподаткування тютюновмісних виробів для електричного нагрівання у країнах ЄС: висновки для України

Introduction. The relevance of further modification of the excise tax on tobacco products in Ukraine, taking into account the European experience, is only growing. Problem Statement. Improvement of excise taxation of tobacco products. Purpose. The analysis of approaches to excise taxation of heat-not-burn tobacco products in the EU countries and, on this basis, the development of recommendations on the implementation of the relevant excise tax in Ukraine. Methods. In the course of the research, the following methods were used: abstract-logical, systematization, comparative analysis, expert evaluations. Results. To date, the European Commission has recommended taxing heat-not-burn tobacco products in accordance with the approaches used for the harmonized excise category “other smoking tobacco”, which provides for the establishment of relatively low excise rates. In all EU countries, Great Britain, Norway and Switzerland, the excise burden on heat-not-not tobacco products is lower compared to cigarettes. The discussion on the revision of Council Directive 2011/64/EU is ongoing. According to available information, changes to the legislation proposed to increase the minimum excise duty on cigarettes in the EU from 1.80 to 3.60 euros per pack of 20 cigarettes. In addition, the European Commission proposed to set a minimum excise duty on heat-not-burn tobacco products that is half as much as compared to cigarettes. The Verkhovna Rada of Ukraine adopted in the first reading the project of the Law of Ukraine “On Amendments to the Tax Code of Ukraine Regarding Revising Excise Tax Rates on Tobacco Products” No. 11090, which provides for updating the excise tax growth schedule and switching to euro rates. According to the proposed changes, in 2028, Ukraine will comply with the European standard regarding the minimum level of excise duty on cigarettes of 90 euros per 1,000 cigarettes. In addition, the level of differentiation of the excise burden on cigarettes and heat-not-not tobacco products will gradually increase to 20% (excise duty on heat-not-burn tobacco products will be 20% lower than on cigarettes). Conclusions. Domestic excise innovations correspond to modern European practice and will contribute to better filling of state and local budgets. After all, on the one hand, there will be no currency risks for the state. On the other hand, the transition to heat-not-burn tobacco products, which are sold only legally, does not lead to the loss of tax revenues (which are related to illegal trade; they are equal to the amount of unpaid excise tax, VAT and retail excise duty).

Assessment of the Efficiency of the Financial Mechanism of Environmental Management

Abstract In recent decades, cataclysmic events, deterioration of air and water quality, and loss of biodiversity have forced us to look for ways to save nature. One of the ways to solve the problems is to ensure rational environmental management, which is possible by establishing an effective balance between consumption and compensation by creating an effective financial mechanism. The purpose of the study is to assess the efficiency of the current financial mechanism for environmental management in Ukraine and to determine the prospects for its improvement. The study uses analysis, synthesis, specification, systematization, and generalization. The graphical method was used to assess environmental taxes, and mathematical modelling was used to analyze the dependence of emissions on direct costs and capital investments in air protection and climate change. Environmental taxes in Ukraine are an ineffective instrument of the financial mechanism of environmental management. Their share in the structure of domestic GDP is lower than the share in the EU. The author suggests ways to improve them: to replace the CO2 tax with an energy tax; to cancel the tax-free limit of 500.000 tons of CO2 emissions per year; to change the structure of tax distribution; to introduce tax rebates. The correlation and regression analysis of the dependence of air pollutant emissions on current expenditures and capital investments in air protection and climate change issues showed the existence of a feedback loop. Investment support for environmental management should be provided from various sources in the following areas: national, local and international finances - primarily for the restoration of air, water and contaminated areas; own funds and international investments - for the modernization and greening of production.

The single tax in Ukraine: reform or repeal

The institution of a simplified taxation system provided for in the tax system of Ukraine is characterized by permanent variability, which is always aimed at achieving an optimal balance between national interests (reduction of the shadow economy sector; attracting funds to budgets; reducing the level of tax administration costs; preventing the use of simplified taxation system in minimization schemes; etc.) and individual interests of taxpayers (reducing the tax burden; promoting the competitiveness of taxpayers; improving the convenience of paying taxes; minimizing the amount of tax reporting; etc.). Since the introduction of the simplified taxation system, it has been significantly transformed and, compared to 1998, is qualitatively better. Despite this, discussions in political and scientific circles about the need to take steps to further modify this special tax regime, up to its complete abolition, do not stop. The article considers the National Revenue Strategy until 2030 approved by the supreme executive body of Ukraine, which defines a medium-term roadmap for reforming tax policy and tax administration in Ukraine. The article outlines the main principles that should be followed in modernizing the national simplified taxation system and considers the goals that the state seeks to achieve through the practical implementation of the approved strategy. The author describes in detail the key measures envisaged by this national strategy for reforming the simplified taxation system, including in the context of Europeanization of the tax system of Ukraine, and points out the uncertainty of certain elements of these measures, which leads to complications in the tax planning process for entities. The author concludes that the approved national strategy, which is aimed at approximating the national tax policy and tax legislation of Ukraine to the provisions of the European Union legislation, provides for depriving legal entities (including agricultural producers) of the right to tax their income with a single tax, and defines measures to tighten the requirements for single tax payers (individual entrepreneurs) and increase their tax burden.

The problem of the efficiency of criminal-legal protection of taxation in Ukraine

The paper analyzes the doctrinal definition of the taxation system of Ukraine as an object of criminal law protection. It was established that the criminal offenses provided for by Articles 204 of the Criminal Code and 212 of the Criminal Code encroach on one type of social relations - the taxation system. It is noted that the institution of legal responsibility, including criminal responsibility, is considered the most effective. It was determined that the resolution of conflicts and practical problems that arise during the qualification of the specified offenses is extremely important and precisely in today's realities and will contribute to increasing the effectiveness of criminal law protection in the field of taxation in Ukraine. Tax and contribution evasion are purposeful actions by taxpayers aimed at significantly reducing or completely avoiding the required payment to the relevant budget or trust fund. It should be noted that tax legislation is one of the most controversial and dynamic areas in Ukraine, constantly changing, supplementing, interpreting and adapting to new challenges of an economic and social nature in the country, while regulating and shaping tax policy. Changes and additions are often made to legislative acts in this area, which ensures flexibility of legal regulation of tax relations and at the same time violates such principles of construction and purpose of the taxation system as stability and affordability. We support the position of scientists that the object of criminal law protection is those social relations that are under the protection of criminal law. In the case of committing a tax criminal offense, on the basis of the norms of the criminal law, the criminal law qualification of the criminal act is carried out and the criminal law measures of influence are applied to the guilty person. Therefore, the issue of increasing the effectiveness of criminal law protection in the field of taxation in Ukraine, solving conflicts and practical problems that arise in the qualification of the specified offenses and legal assessment of committed actions, improving the conceptual apparatus is extremely important and relevant precisely in today's realities, because the financial security of the country is not the most important component of ensuring the possibility of implementation of state programs.

The Efficiency of Financing Environmental Protection Measures in the Context of Ukraine’s Future Membership in the EU

In recent decades, humanity has had a significant negative impact on the environment. This problem can be solved only by establishing a rational environmental management policy and ensuring an effective financial policy in the context of balancing emissions and expenditures on environmental protection measures. The purpose of this article is to analyze the efficiency of financing environmental protection measures by determining the dependence of pollutant emissions on environmental protection expenditures in Ukraine and the European Union. The following methods were used for the study: analysis, synthesis, generalization, comparison, specification, and statistical and graphical methods. The statistical information was systematized on the basis of open data from the Open Budget web portal, the State Statistics Service, and Eurostat. This study identified the dynamics of revenues from environmental taxes in Ukraine; taxes on air emissions prevail. Most of the expenditures are made from the state budget. According to the functional classification, environmental expenditures are mainly aimed at preventing and eliminating environmental pollution. The dynamics of capital investments in environmental protection were also studied. To assess the effectiveness of the state policy in the field of environmental protection, we analyzed the dependence of pollutant emissions in Ukraine, Poland, and Romania on the amount of environmental expenditures and investments in this area and revenues from environmental tax. In Ukraine, the amount of pollutants released into the atmosphere depends mostly on investments in this area; in Poland—on revenues from environmental taxes; and in Romania—on expenditures on environmental protection. It has been established that the obtained models are adequate and can be used to build future forecasts of pollutant emissions. Directions for the development of financial and environmental policy are proposed. Post-war restoration of the environmental situation should be carried out on the basis of sustainable development, focusing on the European Green Deal A triple-task approach should be implemented, including environmental restoration, the minimization of negative climate change and balanced use of resources, and the expansion of powers of the relevant ministry with a focus on the strategic goals of the state policy. It is necessary to develop methodological recommendations according to international standards to assess the real state of the environment.

Digital Innovations in the Fiscal Policy of Ukraine: Promoting Sustainable Economic Development

This study critically examines the nexus between tax legislation and digital innovation in Ukraine, focusing on the alignment of fiscal policy with the digital economy's growth. It analyzes the implications of Ukraine's tax reforms, including the Law "On Stimulating the Development of the Digital Economy in Ukraine," commonly referred to as the Diia City initiative, for promoting a robust digital economy. This research evaluates the effectiveness of these reforms in fostering digital advancements and their impact on sustainable economic development. Employing a comprehensive multidisciplinary approach, it researches into the theoretical and practical aspects of tax policies, particularly those targeting the digital sector. The findings suggest Ukraine's strategic positioning for leveraging digital innovation, underpinned by legislative reforms such as amendments to the Tax Code of Ukraine that cater to the IT industry through specific tax regulations through a conducive fiscal environment. This paper highlights the transformative potential of digital innovations and the critical need for tax legislation to evolve in tandem with technological advancements. Recommendations for ensuring the sustained success of Ukraine's digital and economic reform efforts emphasize the importance of addressing existing obstacles and perpetually refining fiscal policies.

TAX OFFENSE AND ITS QUALIFYING FEATURES

The article is devoted to the legal analysis of the tax offense concept, as well as the inclu­sion of the “guilt” institution to the tax offense definition in Ukrainian Tax Code. Attention is paid to such tax offense’s qualifying features as the committing an act by person intentionally, repeatedly or in presence of the cause-and-effect relationship between the act and its conse­quences. It has been found that the Tax Code of Ukraine does not contain a clear definition of the “guilt” concept, but it defines the conditions under which person is found guilty. In particular, two groups of such conditions are highlighted. The first group assumes that a person who had the opportunity to comply with the norms of tax legislation did not take sufficient measures to comply with them. At the same time, the second group of conditions for finding a person guilty of committing a tax offense is the duty of the tax authority to prove that the taxpayer acted «unreasonably, in bad faith and without due diligence». However, the author emphasized that for tax authorities, the Tax Code of Ukraine establishes responsibility for committing tax offenses regardless of the presence of guilt. Special attention is paid to the characteristics of intent in the actions of a person as a quali­fying feature of the tax offense. It has been substantiated that if the tax authority does not prove the fact that the taxpayer had the opportunity to comply with the tax legislation, but did not take sufficient measures to do so, such a taxpayer cannot be subject to liability measures for violating the requirements of the tax legislation. It has been noted that the confirmation of a person’s guilt can also be the commission of an ongoing and repeated offense. It has been established that the institution of guilt for tax offenses began to be applied in 2021, which was connected with the adoption of the Law of Ukraine «On Amendments to the Tax Code of Ukraine on Improving Tax Administration, Eliminating Technical and Logical Inconsistencies in Tax Legislation».

Sociological discourse of technological development: global challenges and ukrainian realities

Methods. The methodological basis of the study was such scientific methods as analytical – when summarizing the results of scientific research of domestic and foreign scientists regarding the essence, significance and factors of influence on scientific and technological activity in the country; abstract-logical – when formulating a hypothesis regarding the relationship between social relations of taxation and the economic results of management of innovative and technological development; economic and statistical – during the study of the social characteristics of taxation in Ukraine. Results. Based on the analysis of the scientific works of domestic and foreign scientists, it has been confirmed that technologies promote innovation, create jobs and contribute to long-term economic growth. It was established that such generally recognized factors of influence on scientific and technological activity in the country as industrial, monetary and tax policy, as well as financial encouragement of business to introduce innovations and advanced technologies in combination with organizational changes, require a systematic approach to the introduction and addition of additional regulators depending on the situation. Attention is focused on the need to expand the list of factors influencing social changes, in particular, at the expense of tax sociology. Novelty. It has been established that the field of tax sociology can supplement traditional ideas about the economic model of behavior by determining the fundamental dynamics, the long-term ability to invest in research and technology. Practical value. The results of the research are of an applied nature as such that, based on the analysis of tax statistics, it is possible to predict the far-reaching consequences of the impact of tax sociology on socio-economic changes in general, and scientific and technological development, in particular.

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.

ANALYSIS OF SYSTEM TAXATION TO LATVIA: BASIC LINES AND ESSENTIAL ASPECTS FOR MODERNISATION OF TAX SYSTEM OF UKRAINE

The article considers the taxation system and its impact on the intensification of entrepreneurial activity, conducts a comparative analysis of the current taxation systems of Latvia and Ukraine, highlights their shortcomings, advantages, impact on the development of the country, activities of business entities and welfare of citizens, analyses the tax administration procedure and the mechanism of taxation by direct and indirect taxes. The issue of using foreign experience of tax reforms in the framework of harmonisation of the Ukrainian tax system with the global one is extremely relevant, especially in the current economic environment. As a result of the study, the author analyses the current tax legislation of Ukraine, which is embodied in the provisions of the Tax Code, in comparison with the tax legislation of Latvia. Using the model of the Latvian taxation system as an example, the author substantiates its effectiveness when using a sufficiently high level of tax deductions. To achieve this goal, the author analyses the state of the Latvian taxation system in 2017–2023, and studies the economic freedom index of Latvia in dynamics and its impact on the development of entrepreneurial activity. It is noted that the taxation process should contribute to the implementation of employment policy, influence the distribution of income in the direction of ensuring equity, and create a barrier to the use of shadow tax schemes. Prospects for further research in this area are the development of measures to improve the domestic taxation system.

DIRECTIONS OF STATE SUPPORT TO DOMESTIC ENTERPRISES DURING WAR

The article examines the directions of state support for domestic enterprises in the conditions of the war in Ukraine. The dynamics of changes in the number of economic entities of Ukraine during 2012–2021 have been analyzed. The influence of the full-scale invasion on the development of domestic business has been determined, as well it has been determined that about 50% of Ukrainian companies stopped working on the market, 29% of them completely suspended their activities (in particular, those companies that were located in the temporarily occupied territories). The list of the main actions of the Ukrainian government to support business during the war has been characterized. It has been determined that starting from 2014, the income tax was reduced by 5% compared to 2011, which had a stimulating effect on the development of Ukrainian businesses and investment in the development of production and labor resources of enterprises. The main changes to the payment of taxes in Ukraine (including personal income tax, value-added tax, excise duty, single tax, and single social contribution) have been considered.

ТЕНДЕНЦІЇ РОЗВИТКУ ПОДАТКОВОЇ ПОЛІТИКИ: ВІДНОВЛЕННЯ ПІСЛЯ ВІЙНИ

The article is devoted to the study of trends in the development of domestic tax policy. The author analyzes the importance of the tax system for the recovery of Ukraine's economy after the war, since the military conflict and the unstable political situation in the country put serious pressure on the economic system and require strategic decisions on tax policy. Based on a report by the European Business Association and other sources, the current state of the tax system and its impact on the Ukrainian economy are analyzed. After reviewing the current economic situation in Ukraine, the article highlights the negative consequences of the military conflict, including significant damage to infrastructure, disruption of production, and labor migration. The increase in defense spending during the conflict also creates additional financial pressure on the state budget. It is noted that these changes require a positive review from international partners to ensure the financial stability of the country. The article discusses proposals for combating the shadow economy and optimizing tax revenues by creating favorable conditions for the return of emigrants to Ukraine and attracting funds from Ukrainians working abroad. The article also presents the main provisions of the National Revenue Strategy of Ukraine until 2030 regarding the internal reform of tax and customs authorities, restoration of taxpayers' confidence in tax authorities, and implementation of tax and customs policy measures. Particular attention is paid to the principles of reasonable management of tax audits in times of crisis. The article analyzes the methods and strategies aimed at ensuring compliance with the law and maintaining trust in the tax system in an unstable environment. The author also emphasizes the importance of reasonable management of audits in the context of military conflict. It is noted that effective regulation and supervision of tax audits can help reduce risks to business and maintain confidence in the tax system. The article identifies the key areas for tax reform in Ukraine, including measures to increase tax revenues, improve the tax system and ensure sustainable economic development of the country in the context of military conflict. Overall, the article provides an in-depth analysis of the current state of Ukraine's tax system and suggests constructive strategies for tax reform in the context of the crisis, with the aim of supporting the country's economic recovery and stability.

Реформування об’єкта оподаткування податком на прибуток: ретроспективний аналіз нормативно-правової бази

Stability and reasonableness in calculating the object of income tax, on which the filling of the country's budget significantly depends, are important factors for developing a business and the national economy. The article's purpose is a retrospective analysis of the legal framework of the method for determining the object of income tax in the context of the duality of its nature as an accounting and financial category. The results of such an analysis form the basis for determining further ways to improve the income tax accounting method. The legislative changes that formed and supplemented the functioning mechanism of the income tax during the Soviet era were revealed. The article assesses in detail the steps taken by the government of independent Ukraine to update the legislative framework on income tax and bring it into line with the requirements of the market environment. An analysis of the evolution of the object of taxation, expansion of the list of taxpayers, and changes in benefits for paying income tax was carried out. Based on the results of the analysis, a periodization of the stages of the development of the legal framework for income tax was developed, which consists of seven periods: the formation of income tax in various forms; initiation of the methodology for determining the object of income tax; development of the Ukrainian system of corporate income taxation; improvement of the methodology of the tax base and the collection and control mechanism; the occurrence of tax accounting to determine the tax object; reforming the Ukrainian tax system; integration of accounting and tax accounting. The study results show that during the entire period of development of the income tax system, there was no single strategy for reforming the method of determining the object of tax. The development and adoption of such a plan could improve the quality of the income tax system by ensuring greater efficiency, simplifying procedures and stimulating business development.

STRATEGIC PRIORITIES OF THE TAX AUTHORITIES ACTIVITIES IN THE CONDITIONS OF MODERN CHALLENGES AND THREATS

Introduction. The task of formation an effective anti-crisis strategy for public finance management, is an integral part of Ukraine’s international obligations in the field of fiscal policy, customs and tax administration. It is impossible without the implementation of a system of measures to improve the efficiency of procedures for mobilizing state revenues by tax and customs authorities. This tasks is very important for simultaneous ensuring parity relations between the state, tax bodies and taxpayers on the basis of transparency, openness and effectiveness of management procedures. The purpose of the article is to investigate the strategic vectors of the modernization of the Ukrainians tax authorities in the system of bodies that implement the state financial policy, outlining the existing challenges and threats, goals and conceptual provisions of transformations of the tax authorities in the past and at the current stage of operation, as well as identifying priorities of their further reformation. Results. In the result of the conducted research of the pragmatics of the implementation of the strategic tasks of tax authorities in the conditions of existing challenges and threats, tax authorities’ reform strategies were chronologically systematized with the identification of the goals, tasks and priorities of each of them in a certain period of time. The existing results and obstacles to the effective implementation of strategic and tactical measures of reforming tax authorities in the system of bodies implementing state financial policy are outlined. It was established, that despite to the influence of unprecedented external and internal factors such as: russia’s military aggression, the consequences of the loss of part of the territories, production potential, the decline of business and foreign economic activity, the irreversible consequences of the post-pandemic recovery, the activity of the Ukrainian tax authorities is characterized by an increase in the efficiency of functioning, optimization of management, personnel, digital and information and communication processes.

ОКРЕМІ АСПЕКТИ МІЖНАРОДНОГО ДОСВІДУ ОРГАНІЗАЦІЇ ПОДАТКОВОГО КОНТРОЛЮ

At the current stage of the development of the domestic economy, tax control is one of the main problems before the executive authorities, since the issue of replenishing the budget is one of the most important, because the country is under martial law and the level of the shadow economy is growing. Creating an effective tax control system requires rational approaches using the practical experience of foreign countries in this area. The article analyzes and characterizes the specific features of the organization of tax control in European countries (France, Germany, Poland), the United States of America (USA), and Canada. The main principles, forms and directions of tax control in these countries are considered according to two main approaches – European and Western (American). The legal framework and institutional environment for ensuring the tax control process are considered. Cases of imposition of administrative and/or criminal punishment for committing a tax offense in accordance with the legislation of each individual country are outlined. The main directions of the effective organization of tax control in Ukraine are outlined, taking into account world experience.. It is noted that the tax services in Western countries are largely endowed with the powers of law enforcement agencies. The active development of non-cash payment systems with the wide use of computer systems helps to develop the market economy of countries, which accordingly improves the tax control of tax services. The tax control system of Ukraine is close to the European approach, but the reform of the administrative tax system is very slow. Tax authorities should not only be able to receive tax reporting at their disposal, but also the reporting of other financial institutions related to the activities of the taxpayer. The main directions of the organization of tax control in Ukraine are reflected, taking into account the experience of other countries. One of the main ones is the need to improve the technical support of Ukrainian tax authorities and accelerate the process of digitalization of policy in the context of tax control.

Current issues of digitalizing the provision of administrative services in the field of taxation in Ukraine: regulatory and legal aspect

In the paper, the study of regulatory and legal issues of digitalization of administrative services in the field of taxation in Ukraine was carried out. On the basis of the conducted scientific research, the author came to the conclusion that the main normative legal acts, which define the features of expanding the possibilities of receiving tax services in electronic form, were the following provisions: Art. 42-1 of the Tax Code of Ukraine and order of the Ministry of Finance of Ukraine dated July 14, 2017 No. 637, according to which tax authorities and taxpayers interact through the taxpayer's electronic cabinet (in the form of receiving information (both open and that which concerns only of the taxpayer), submission of documents, including tax reporting, payment of taxes and fees; order of the Ministry of Finance of Ukraine dated June 6, 2017 No. 557, according to which electronic tax reporting is submitted using the ITS "One-stop shop for submission of electronic reporting"; order of the Ministry of Finance of Ukraine dated November 20, 2015 No. 1040, which introduced the possibility of conducting an electronic tax audit upon the taxpayer's application using the information submitted by him in the application for an audit. In order to further improve the process of digitization of the provision of administrative services in the tax sphere, the Strategy for Reforming the State Tax Management System was adopted finances for 2022-2025 and the Strategy for implementation of digital development, digital transformations and digitalization of the state finance management system for the period until 2025. These documents define the existing problems of the digital transformation of the taxation system, as well as directions for their solution. At the level of regulatory documents that determine the specifics of paying taxes, submitting tax reports, and the functioning of the electronic office, unfortunately, the legal position of the mobile application "My Tax", created in September 2023, to which the functionality of the electronic services of the web portal of the State Tax Service has been transferred, has not been defined of Ukraine, equating information and documents received/submitted through it to information and documents received/submitted through the taxpayer's electronic account.

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.

EFFECTIVE TAX SYSTEM AS A DRIVER OF INNOVATION PROCESSES: A COMPARATIVE STUDY OF FINLAND AND UKRAINE

This article explores the theoretical and methodological aspects of a country's tax system in terms of its impact on the development of innovation processes. It identifies the role of tax revenues in the economic and innovative development of a state, serving as a primary source of funding for sectors providing public services. The study emphasizes the role of tax policy in the development of a national innovation system, focusing on elements such as startups, venture business, incubators, accelerators, and technology parks within the current business ecosystem. The tax system is defined as a key element in the functioning of a state and the regulation of its economy, considering the needs of innovative structures to facilitate national development. Ukraine and Finland are chosen for the analysis of the impact of the tax system on innovation processes, representing Eastern and Northern Europe, respectively. The study analyzes proportional taxation in Ukraine, including the option of a simplified system, and progressive taxation in Finland, where tax rates increase with income growth. The research highlights significant differences in tax payment culture between the two countries. Finland exhibits a high level of tax culture, supported by the effective use of budgetary funds to create public goods. In contrast, Ukraine has a relatively low tax culture due to the population's low trust in the government and satisfaction with their social needs. The analysis of both countries' tax systems helps determine the role of tax policy in the innovative development of a state and the support of an innovative environment, including the implementation of startup projects.

The Functioning of Tax Authorities in Countries of the European Union

The paper delves into an insightful analysis of tax authority operations in various European Union (EU) member states, including Poland, Sweden, Germany, and France. This study seeks to extract valuable lessons from their practices and apply them to the context of Ukraine. Poland's tax authority, governed by the Tax Ordinance, serves as an interesting starting point for the investigation. Sweden's National Tax Agency, operating under the Swedish Ministry of Finance but independently of the government, takes centre stage as a model of centralised tax administration based on functional principles. In contrast, France's tax system integrates its state tax service into the Ministry of Economy, Finance, and Budget, showcasing a unique structural arrangement. Notably, Germany stands out with its highly proficient tax service, emphasising the importance of professional expertise in tax administration. In conclusion, this study underscores the universal nature of lessons learned from the organisational activities of tax authorities in EU member states. By implementing these insights, Ukraine can take significant steps toward optimising its tax administration, fostering trust between taxpayers and authorities, and aligning its practices with international standards. Ultimately, the paper serves as a valuable resource for policymakers and tax professionals seeking to enhance Ukraine's tax authority operations.

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.