Ukrainian Tax Research Articles

Соціокомунікативний підхід до проблеми запозичень в українській податковій термінології

The influence of scientific terminology on the formation of the national language is manifested in the expansion of the terminological vocabulary of the Ukrainian language at the expense of words associated with new types of mental and practical activity, in interaction with the lexical system of living, spoken language, in categorical differentiation of lexemes (belonging to different categories – names processes, objects, phenomena, individuals, institutions), in the formation of the first system formations on the disparate terms basis. Tax terminology belongs to the ancient layers of the lexical system, its formation depends on many linguistic and extra-linguistic factors. The functioning of the tax vocabulary as a certain integral system, its development and ordering were the least studied of Ukrainian Linguistic issues. The least studied in linguistic-Ukrainian studies were the questions of the functioning of the tax vocabulary as a certain integral system, its development and organization. The analysis of the historical background of economic activity in the Ukrainian language aspect, is closely linked to the Ukrainian political history. In addition, we take into account the geopolitical situation that arose as a result of the distribution of Ukrainian lands for several centuries between different states, where Ukrainians followed to legislations of these countries, where the rights and status of the Ukrainian language manifested itself in different ways. Different linguistic and political orientations of the regions of Ukraine had influenced on the formation of the tax terminology on the Dnieper and Dniester territories. As follows, there were extralinguistic factors of analyzed terms borrowing which had the main influence on the process, such as: Integration processes in science, the high level of development of this science-applied discipline in the countries of Western Europe. The long existence of Ukraine in conditions of economic, socio-political and cultural dependence on neighbouring states. As a result of the historical and political factors, the stages of free, natural development of terminology, dominance in all spheres of special language, specifically Ukrainian vocabulary, as alternating with the stages of artificial Russification, polonization or Germanization of the economic vocabulary of the Ukrainian language with parallel withdrawal from the circulation of terms created on its own linguistic basis. The sources of the Ukrainian tax terminology were such languages as Latin, Greek, French, German, Lithuanian, Italian, English, Turkish, Arabic, Polish. The situation of uncertainty and ambiguity of approaches that has developed in Ukraine in the field of scientific language (scientific style in general) requires serious linguistic analysis and developing of specific recommendations for the creation and use of terms due to their solidity in science and the language, convenience, and the correspondence of the Ukrainian language system. That is why particular importance is the question of the correlation of the national language and foreign languages terms, the role of borrowing in the system of development modern Ukrainian terminology. The best option is to use national terms if they correspond to the optimal aesthetic, linguistic and cultural characteristics, psychological characteristics. The situation of uncertainty ambiguity of approaches which has developed in Ukraine in the field of the scientific language, (the scientific style in general),needs serious linguistic analysis and making specific recommendations as for creating and using terms, considering on their solidity in science and language, convenience, compliance with the Ukrainian language system.

Парадигма оподаткування доходів фізичних осіб

Role and value of individuals' income taxation are revealed. Theoretical and methodological features of individuals’ income taxation system functioning which help to reveal alternative ways to ensure stability of budget filling and effectiveness of Ukrainian tax system with saving its national priorities in the conditions of financial resources globalization are highlighted. Order of individuals' income taxation program modeling in the conditions of integration is suggested. Goals and tasks of the program are formulated. Need for consistency of program goals and tasks with possibilities of tax control providing and means of goal achievement including resources such as regulatory framework, individuals' income, administration, declaration is proved. Reliable regulation of tax code and solution to the problem of tax evasion are established to be end results of the program. It is stated that clear delineation of strategical and tactical goals of individuals' income taxation program, agreeing on its content and terms of implementation and scientific and practical reasonableness will ensure timeliness of its implementation and integration of fiscal service with scientific institutions. The external factors of influence on the taxation system are revealed. Influence of legal, economic, political, social and technological factors on the income taxation is substantiated. It is stated that political factors such as present military conflict and exclusion of a significant part of taxpayers have the worst influence on cost and revenue part of the budget. Social component is established to be significative according to its influence on fiscal authorities and internal environment of taxpayers. Analysis of the tax system functioning technological aspect allows to find out the opportunities which, due to the development of Internet technologies, are opened for new tax products formation and current accrual rates improvement, taxes payment and administration on time. Internal factors such as taxation object and base, income tax rates, tax social benefits and tax rebates are highlighted. Unification of income taxation and military assembly into the single income tax with further distribution of sums in treasury bodies is suggested. Keeping the register of individual taxpayers divided into two groups is proposed

Tax Reforms in Ukraine and Georgia: Changing Priorities

The Georgian and Ukrainian tax systems both emerged after the collapse of the USSR, yet the tax reforms in the two countries pursued different trajectories and produced different outcomes. The article systematizes and compares the results of the tax reforms in Ukraine and Georgia. The study applies qualitative methods for historical analysis, for periodization of the reforms and for classifying their key priorities and the factors that influenced them. Quantitative methods are applied to compare the tax burden in Ukraine, Georgia and OECD countries. The success and failure of the tax reforms was measured by the index of economic freedom (including its component – the index of tax burden). The first hypothesis suggested that a reduction in the tax burden had a positive impact on the indicators of economic freedom; the second hypothesis stated that a reduction in the tax burden affected fiscal freedom but did not affect the index of economic freedom. Regression dependences of the average tax burden (including the tax burden resulting from social security contributions) and the index of economic freedom (including the index of tax burden) were built in the R environment. The regression analysis confirmed the first hypothesis for Ukraine and the second, for Georgia. This result can be explained by the fact that, unlike Ukraine, the Georgian tax reforms focused on institutional changes, which determined their success. In 1996–2018, Georgia rose in the ranking of economic freedom and joined the group of economically free countries. Moreover, this country has been steadily improving its position in the ranking. Ukraine, on the contrary, has remained in the group of economically unfree countries. Due to the unbalanced reforms and insufficient structural changes, the country’s government failed to ensure the desired effect from the tax burden reduction. For citation Bedianashvili G., Ivanov Yu. B., Paientko T. V. Tax Reforms in Ukraine and Georgia: Changing Priorities. Journal of Tax Reform . 2019;5(2):107–128. DOI: 10.15826/jtr.2019.5.2.063 Article info Received June 25, 2019 ; accepted July 27, 2019

Improvement of fiscal efficiency of indirect taxes in Ukraine

The object of research is the system of indirect taxation, in particular, the mechanisms of administration of indirect taxes. One of the most problematic places is the lack of efficiency of such taxes, affecting the volume of revenues to the Consolidated Budget of Ukraine.Statistical and economic methods are used to assess the fiscal value of indirect consumption taxes in the structure of budget revenues. The analytical method is used when considering the status of indirect taxes for the reporting period (2014–2018), which gave a complete picture of the amount of budget revenues. The main shortcomings of the system of taxation of indirect taxes are identified and substantiated, the most important of which are: reduction of the fiscal sufficiency of the value added tax (VAT) and the imperfection of the system of administration of indirect taxes. Based on the method of comparing the experience of various countries, the main ways of improving tax administration in Ukraine have been formed.As a research result, it is found that VAT is the main one in terms of budget formation. Its share reached the highest level in 2018 (75.1 %). This is due to the fact that since 2016, a 7 % rate on medicines has been introduced. The second in fiscal efficiency is the excise tax, which tended to increase from 22.9 % in 2014 to 24.3 % in 2017. The third indirect tax is the duty: its share in 2014 was 6.4 %, decreasing to 4.7 % in 2018Thanks to the research, it is established that the level of fulfillment of indirect taxes in Ukraine did not meet the planned indicators. This demonstrates the need to improve the functioning of the tax system. This result can be achieved by reducing the list of preferential VAT transactions and improving the customs legislation of Ukraine in accordance with international standards. The use of foreign experience in the regulation of Ukrainian indirect taxation will contribute to the stabilization of economic growth and the gradual integration of the state into the European community.

Legal Models of IT Taxation

The article is devoted to analyze legal models of IT taxation in the advanced countries of the world. It is determined that the main way of selling the results of IT-activities is electronic commerce. The article analyzes the basic definition of electronic commerce. The author uses the anthroposociocultural approach in tax law as the basis of the methodology of the study of the problems posed. This approach allows us to see the taxation problems, in particular electronic commerce, including the local level from a new point of view. Author analyzes the model of minimal intervention and the model of hard regulation as two main models of IT taxation. The author pays special attention to the analysis of the legal regulation of electronic commerce taxation in Switzerland as a country-standard of local taxation. The article defines the main levels of taxation in Switzerland and outlines the benefits of using such a system of legal regulation of taxation. The author observes American and European models of legal regulation of electronic commerce. The link of the necessity of taxation of electronic commerce and the observance of the human right to taxes is revealed in the article. The article includes the analysis of the advantages and disadvantages of legal models of electronic commerce taxation used in the advanced countries. The conclusion is drawn about the main advantages of using the experience of the legal model of hard regulation of IT taxation in Ukraine.

Legal Issues of Preventing Inflation in Local Taxation

The article is devoted to the disclosure of the peculiar properties of the prevention of inflation within the framework of local taxation in Ukraine. Author emphasizes that spontaneity and the fundamental ineradicableness of inflation within the limits of human civilization require an adequate understanding of the specifics of restraining of this phenomenon in the tax sphere. In the article the effects of inflation on the tax system as a whole are considered, as well as the ways of the legal policy of prevention of inflation in the world are described. The elements of the juridical constructions of a number of local taxes and fees in Ukraine are analyzed and evaluated in detail. The main indicators for such an assessment are the tax base and the tax rate, because, firstly, they are typically expressed in monetary terms, and, secondly, their measures ultimately determine the assessed tax amount. The elements of the juridical constructions of such taxes are investigated in the article: tax on immovable property, other than a land plot, transport tax, land tax and land rent. Particular attention is paid to the principles and mechanisms of indexation of normative monetary evaluation of land plots, which is a necessary component of the tax rates in juridical constructions of land tax and land rent. A generalization is made that inflation transforms a number of tax principles, provided in the Tax Code of Ukraine, in particular the principles of fiscal adequacy, social justice, tax efficiency, tax neutrality and equability of tax payments.

Taxation of Permanent Establishments in Ukraine: Unresolved Issues

This article deals with selected issues of taxation of permanent establishments in Ukraine that lack appropriate judicial and scholarly attention. It particularly focuses on the attribution of profits to permanent establishments according to OECD standards and Ukrainian law, taxation of dependent agent permanent establishments, and the State’s taxing rights with respect to the permanent establishment’s financing by its head office. The authors conclude that to improve the quality of permanent establishments’ taxation in Ukraine, appropriate procedures should be clearly prescribed in the law and due regard be given to the already developed international standards that might be, in fact, directly applicable.

VAT in conditions of transition to the digital economy: lessons for Ukraine

Despite the reputation of VAT as a convenient tool for accumulation of significant amounts of tax revenues to the budgets with relatively low administrative costs, the broad use of new information and communication technologies and the spread of e-commerce throughout the world considerably affects this tax’s efficiency, increases the risk of non-taxation or double taxation of operations, made in the framework of international trade, and violates the principle of fairness between goods and services, traded (provided) offline and online.In this regard, this paper outlines the main list of issues, that arise when using VAT to e-commerce transactions (especially - international ones), and describes main approaches, that are planned to apply or are already applied by the leading countries in the context of economical development and e-commerce.In general, international organizations (OECD, EU) have confirmed that e-commerce transactions are subject to VAT on a destination principle, and all sellers must be registered for VAT purposes in the countries, where their clients are located. However, there are still problems of international co-operation and coordination, related to the VAT application to international transactions.For less developed countries, emerging economies, and countries, that are planning to become EU member-states (such as Ukraine), not only the problems of applying VAT to e-commerce transactions, which are not solved in the most developed countries, must be addressed, but also those, that impede their economic and social development.Based on the results of the analysis, the paper offers recommendations on improving the legislation on e-commerce taxation in Ukraine and general recommendations that should contribute to the development of this type of trade in the country.

Mining and logging industries in the context of Ukraine's EU accession

The purpose of the paper is to provide scientific and analytical substantiation for the organizational and legal forms of business entities of mining and logging sectors in accordance with the requirements of the EU Accounting Directive 2013/34 on the disclosure of complete and objective information of tax payments in favour of the state. Subject of study.Regulatory framework for the organizational and legal forms of economic entities of mining and logging sectors. The article substantiates the need for implementation in Ukraine of international standards and best practices of disclosure of information in the extractive industries (mining and logging) in accordance with the Initiative on providing transparency based on main provisions of the accounting Directive 2013/34/EU. Disclosure of information will provide the public with the possibility to access complete and objective information on payments of business entities that operate in the extractive industries in favor of their recipients, creating preconditions for publicly responsible use of minerals resources of national importance. For this purpose, the organizational and legal forms of business entities for the last three years (01.01.2015 - 01.01.2017) have been analyzed and the compliance of the Directive 2013/34/EU with their criteria has been determined.On the basis of the information received it is necessary to make adjustments to legal acts of the business entities in Ukraine. Conclusions. Organizational and legal status of economic entities operating in Ukraine (mining and logging industries) needs to be revised according to the requirements of the Directive 2013/34/EU and the current legal and regulatory framework. For this it is necessary to determine such indicators as total balance sheet and net turnover considering the average number of employees in the unit of account of European countries. This will lead to the business entities consolidation correspondingly to reducing their number, and will thereafter facilitate the administration of taxes in Ukraine.

Features of agricultural enterprises taxation system in Ukraine and directions for its improvement with consideration of foreign experience

The subject of the research is the processes and systems of taxation of agricultural enterprises, their components and principles; types and amounts of taxes in Ukraine and abroad; trends of development and possible directions of improvement. The aim of the work is to identify the peculiarities of taxation of agricultural enterprises, its principles, advantages and disadvantages for the purpose of further improvement, including on the bases of studying and taking into account foreign experience. The methodological basis of the article became general scientific methods of cognition, - system-structural analysis and synthesis, dialectical, historical, abstraction. Also, these methods are generalization, grouping, comparison, absolute and relative values, other methods of research. Results of work.It is determined that the systems, mechanisms and processes of taxation of agricultural enterprises in Ukraine are in development. They require significant improvement to optimize their inherent functions. In fact, the fiscal function is traditionally prevailing in terms of distribution and regulatory factors. For this purpose, the main types of taxes and their volumes were characterized, changes in the Tax Code were assessed, the main principles, tasks and necessary structural changes in the taxation system were determined. The experience of subsidizing, insurance and taxation of agribusiness in the United States and European countries has also been studied and summarized in detail. The forms and mechanisms of tax support for small and medium-sized agricultural enterprises are especially valuable for the domestic theory and practice. The field of application of results. The results of the research can be used in the theory and practice of accounting and taxation of agrarian enterprises, management of their financial results, development of development strategies for the future, justification of the state agrarian and tax, regulatory and regional policies, with the support of the development of rural areas and local communities. Conclusions. The taxation systems of agricultural enterprises in Ukraine have certain features in terms of the components, size and principles of collection. They often change in order to improve, but the main function is fiscal. Therefore, the study and, if possible, the introduction of advanced world experience in stimulating, insurance and taxation of agricultural production, with a view to optimizing it in the long term, is of great importance.

ДОКТРИНА СОЦІАЛЬНИХ ОРІЄНТИРІВ ПОДАТКОВОЇ ПОЛІТИКИ В УМОВАХ ДЕМОКРАТИЧНИХ ТРАНСФОРМАЦІЙ СУСПІЛЬСТВА

Formulation of the problem. The redistribution of labor results in any society is carried out through the tax system, therefore the question of morality perception of functioning of the tax system society is requires certain discussions, explanations of the existent files of consideration to the processes of socialization the tax policy in the conditions of democratic transformation of Ukrainian society. A research purpose is grounded the doctrine of choice the social reference-points of tax policy, what is coming from the modern requirements of democratic transformations in Ukraine. The object of research is the tax system of Ukraine, which constantly is founding in the stage of reformation and alterations in the process of the budgetary planning and attempts to execute the requirements of foreign investors. Methodological basis of research became the methods and principles of scientific cognition the general and special methods and receptions which are used in the process of ground the choice of social reference-points for forming of doctrine of tax policy. Including the methods of systematization and generalization are used for the analysis of the existent system of taxation in Ukraine; inductions and deductions - for the ground of construction of the social oriented doctrine of tax policy; the between disciplinary analogy - for the evaluation of indexes and taxes on which must be oriented tax politicians in the conditions of democratic transformations of society. The hypothesis of research became position that strengthening of social role of taxes is the mortgage of development the democratic society. And this is means that basic form of providing the policy of social aspiration in the state must become the tax system at a self-weighted formed. The statement of basic materials. It is well-proven that the doctrine of tax policy must assist a purposeful socio-economic forward movement on principles of balanced the interests of all members of society and systematization of tactical and strategic tasks in relation to reformation of Ukrainian tax system. By basic social reference-points in taxation must come forward: profit of physical persons, capital duties in all its material and non-material forms, differentiation of tax value-added and introduction of wide spectrum of excises. Originality and practical significance of the research. By basis the development of doctrine the tax policy is founded a public agreement, which shows by itself the set of scope rules with determination of responsibility all members of population. Such approach will allow attaining a consensus in civil society. Directions of socialization the processes of taxation are offered the applied value and allow to send community development in a democratic way, based on respect to the human, to freedom of his choice in public life and way of thinking and allow to regulate socio-economic conflicts in society. Conclusions of the research. The conducted research are allowed to formulate the row of important conclusions, in relation to the choice of concrete social reference-points, which in further will help correctly to place accents in the choice of objects and base of taxation, to mark those, which brake development of separate territories, to come in the state of repressiveness results and to create socio-economic tension in society.

Principles of indirect taxation

The purpose of the article is to analyze the existing theoretical approaches to the definition of the sys- tem of of tax legislation, as well as to isolate and analyze the legal of indirect taxation.In the article the system of of tax legislation is considered, as well as the legal of indirect are analyzed and analyzed.The advantages and features of modern indirect taxes in Ukraine are explored. The role of indirect taxes in the tax system is determined, as well as directions of adaptation of the domestic practice of indirect to foreign experience are outlined. The problem aspects of indirect are highlighted and the main directions of its improvement are offered.The necessity of legislative consolidation of the concept of principles of indirect taxation with the corresponding introduction of amendments and additions to the Tax Code of Ukraine is emphasized, since today there is no definition of this category at the legislative level.The provided for in Article 4 of the Tax Code of Ukraine are categorized arbitrarily by the general of indirect and the special of indirect taxation. It is also proposed to supplement with new principles, namely, the principle of tax regulation of the economy and the principle of stimulating entrepreneurial activity and investment activity, with appropriate amendments to the articles. 4 of the Tax Code of UkraineIt is concluded that with changes in tax legislation, there are changes in the approaches of both aca- demics and lawmakers to the fundamental of tax legislation, which in turn should promote further reform of the tax law and eliminate the disadvantages of tax legislation.

Features of optimization of direct taxation taking into account the effect of Dupuit-Laffer

The purpose of the research. The main purpose of the article is to improve the methodological support for optimizing direct taxation in Ukraine based on economic and mathematical modeling and taking into account the Dupuit-Laffer effect. It is tax optimization that should be used as the basis for reforming the tax system, the purpose of which is to ensure the maximum possible increase in tax revenues to the budget, and to minimize tax evasion. Methodology. To optimize taxation, such economic and mathematical modeling methods as mathematical programming, correlation and regression analysis, and 3D modeling were used. Results. As a result of the study, the optimal tax rates for two national direct taxes in Ukraine were obtained, which would ensure the maximization of tax revenues to the budget. Thus, the optimal tax rate on profits should be 1% higher than the existing one, and the optimal tax rate on personal income should be 6.5%. Then the total state revenue from both taxes will be more than 226 billion UAH. Also, as a result of the study, the prerequisites for the formation of the progressive taxation of personal income to ensure its optimality were identified. Practical meaning. The practical significance of the study lies in the applied nature of the proposed methodological support, which can also be used to optimize indirect taxation, in particular the excise tax and import duty, which is especially important during the implementation of changes to the Tax Code in the field of customs clearance of cars. The further researches of the author will be devoted to this. Another direction of further development will be the optimization of taxation in the context of fiscal decentralization.

Fiscal incentives and motives as components of sustainable regional development.

The article deals with fiscal incentives and motives as components of sustainable regional development. It was found that the concept of sustainable development was born at the end of the last century and was intended to ensure the handling of processes and increase awareness about human irreversibility of negative impacts of technological progress. In terms of fiscal decentralization process started in Ukraine, it is appropriate to consider fiscal stimulus is in the context of sustainable regional development, but because the analysis of the issue in terms of the regionalization process also allows it to focus on long-term goals of regional development, which in addition to economic value one filled with content. It is substantiated that fiscal stimulus favoring the formation of a favorable environment for business entities in the regions are powerful tools for influencing sustainable development of the regions. One of the modern means of fiscal stimulation is the fiscal motivation to ecologize the business environment of the regions. The system usually provides special benefits to the economic development of regions and provide services related to resource saving or recycling waste producers of organic products; preferential treatment for green investments, etc. Environmental taxes are one of the fiscal means aimed at changing approaches to the organization of the production process and entrepreneurship in the direction of sustainable development. It was found that the main problem of the existing legislative provisions of environmental taxes in Ukraine is her lack of incentive component, which would include forming a system of economic motives and rewards. It is determined that the least effective means of fiscal motivation, which has not yet found a practical application in the Ukrainian tax system is the differentiation of direct taxes. Introduction of differentiation direct tax rates will allow more evenly and fairly distribute the tax burden among economic entities according to established goals. The objectives of the government's fiscal policy should be the formation of the tax system focused not on mechanical charged and giving existing fees and charges stimulating ingredients.

FOREIGN INCOME – PROBLEMS OF DOUBLE TAXATION


 
 
 The article highlights implications of foreign income taxation of Ukrainian tax residents. Based on the effective Tax Conventions on Income and on Capital, individuals can claim a credit of tax paid abroad against their Ukrainian tax due. However, the claim must be supported by a specific document prescribed by Ukrainian legislation. In practice, the obtaining of the proper document from foreign tax authorities may be impossible for taxpayers, bringing the double taxation of personal income. Thus, the options of improvement of tax credit mechanism and unification of official confirmation of tax base and tax payment were proposed.
 
 

Legal Doctrine of Local Taxes in Ukraine

The article is devoted to the research of the legal doctrine of local taxes in Ukraine. Developed the idea that the tax-legal doctrine in general and the legal doctrine of local taxes are the branches of legal doctrine. The article analyzes the reasons for the dominance and disadvantage of the etatist legal doctrine of local taxes in Ukraine. According to this doctrine, the tax is a person's duty and local taxes are an attribute of local governments. It has been established that the legal doctrine of local taxes in Ukraine is influenced by the legal culture and the level of legal consciousness of the society. Special attention is paid to the human-center legal doctrine of local taxes in Ukraine, that is the opposite of the etatist legal doctrine of local taxes. According to this doctrine local taxes are a means of ensuring the public welfare and interests of a certain community. These interests are providing by local government, that is an organization that consists of individuals who coordinate their actions in order to achieve common goals. It was investigated that local taxes have a higher level of poviding of citizens' interests compared to the state taxes. This statement is analyzed by the example of the property tax, consisting of a tax on immovable property, other than land plot, transport tax; land rent.

Administrative Procedures in the Field of Local Taxation

In the article analyzes the features of procedures in the local taxation system. It’s determined that at the present stage of development of our state, the unconditional fact is that the development of the institute of procedural law in Ukraine is one of the main tasks of reform, the purpose of which is to create a proper and highly developed system of public administration bodies that will ensure and guarantee the protection of rights, freedoms and the legitimate interests of each person. Increasing the efficiency of the work of the State fiscal service and its territorial bodies in the field of taxation directly depends on the effectiveness of procedures, which, of course, is one of the basic components of reform. The author pays his attention that the effective functioning of the Ukrainian tax system is impossible without proper procedures and a reliable system of administering local taxes and fees. Established in 2011, the Tax Code of Ukraine introduced significant changes in the process of administering local taxes and fees, but today there are a number of problems, namely: the lack of quality regulatory procedures, the lack of a unified approach to the definition of administrative procedure and the presence of gaps in the practical aspect of the functioning of the tax system. The conclusions is drawn about the definition of the concept of procedures in the field of local taxation and the improvement of Ukrainian legislation in the area of local taxation in order to protect the rights and interests of taxpayers.

European state aid law and tax incentives in Ukraine

On January 1, 2016, the Association Agreement between Ukraine and the EU came into force, according to which Ukraine should implement European Union rules on state aid. Although these rules are not intended to regulate in any way the tax policy of either EU member states or Ukraine, they limit the possibilities for applying tax incentives. Ukraine is not EU member state and for this moment has no perspective to become a member. That is why some questions arise concerning the way of state aid rules application to economic entities in Ukraine, their monitoring at the national level and consequences for Ukraine if it does not comply with these rules. The article contains a research on the peculiarities of the application of tax incentives in view of the implementation of the European state aid legislation in Ukraine. The author analyzes the European rules of state aid and their application in the tax area. The author has defined what tax measures may fall under the European law on state aid. A simplified taxation system, which is one of the most important tax incentives in Ukraine, will not fall under the rules on state aid. But the possibility of applying tax incentives for large companies will be limited. As a result of the study, it was found that the Anti-Monopoly Committee of Ukraine could have serious difficulties in stopping and returning illegal state aid. The author concludes that, in case of Ukraine's non-compliance with its state aid obligations, the most probable scenario will be long negotiations with EU and simultaneous introduction of customs duties on the relevant commodities. By 2023, Ukraine will be in a transitional period for state aid rules application, and during this time, their implementation will have a serious impact on taxation in Ukraine.

COMPLIANCE WITH TAX LEGISLATION AS A NECESSARY CONDITION FOR FINANCIAL DEVELOPMENT OF THE STATE

Compliance with tax laws is a prerequisite for the financial development of any state. Evasion of taxes, fees and other mandatory payments involves bringing to administrative and criminal responsibility, as it primarily poses the problem of filling the budget of the country, so the study of the issues of this work is very relevant.The article is devoted to the peculiarities of administrative and criminal liability for evasion of taxes, duties and other mandatory payments in Ukraine. The analysis of the legal and regulatory framework of tax regulation in our state is conducted, judicial practice is researched. It is proposed to improve the legislation regulating the responsibility for evasion of taxes, duties and other mandatory payments of Ukraine. In turn, timely and full payment of obligatory payments is not only of great practical importance for filling the relevant budgets of the state, its financial development, but also contributes to the improvement of social protection of citizens of the country and complies with the provisions of Articles 3, 46 and 67 of the Constitution of Ukraine. One of the main reasons for tax evasion is the desire of unscrupulous citizens to increase their own income and gaps in the Ukrainian tax legislation, in particular the lack of sanctions under Art. 212 of the Criminal Code of Ukraine (CCU).Proposed changes to the sanction of Art. 212 of the Criminal Code of Ukraine (in the sanction of Part 1 of Article 212 of the CCU we propose: to increase from 55000 to 350 thousand non-taxable minimum incomes, in Part 2 of Article 212 of the CCU we offer: from 60000 to 370000 non-taxable minimum incomes to citizens; the sanction of part 3 of Article 212 of the CCU — from 300000 tax-free minimum incomes of citizens of the Ministry of Internal Affairs) comply with the provisions of Art. 53 of the Criminal Code of Ukraine, will contribute to the achievement of the purpose of punishment (Part 2 of Article 50 of the CCU) — punishment, correction of convicts, prevention of new crimes, and also solving such a task of the CCU as a legal provision for the protection of human rights and freedoms and the prevention of crimes (Part 1 of Article 1 of the CCU).Solving problems related to administrative and criminal liability for tax violations will help to better comply with the laws of all parties in tax relations and ensure timely receipt of budgets and state trust funds.In the conditions of decentralization of power at the legislative level, it is necessary to expand the powers of local self-government bodies. Therefore, we believe that the article should be changed. 10 of the Tax Code of Ukraine, providing local authorities with broad rights to establish the procedure, rates and rules of taxation of personal income tax, and to attribute this tax to the scope of local taxes.

The Current State of Tax Administration in Ukraine: an Analytical Review of Terminology

Abstract:
 The article includes the study of contemporary legal problems of regulation of the collection of taxes and fees and submit proposals for their improvement.
 Analysis of current tax legislation Ukraine, departmental regulations and practices for their implementation, theoretical understanding of scientific works, publications and recent research shows that today urgently needs further reformatting the Tax Code of Ukraine. Recently, discussions around the Tax Code of Ukraine tend to increase. Particularly sharp criticism is about the quality of writing legal text of the Code, its shape and structure.
 The current topic of contemporary tax debates in Ukraine is the imperfection of the current norms of the Tax Code. The generally acknowledged problem in the field of tax legislation is recognized by the language and technical quality of tax law-making.
 Consequently, the study of legal problems in the regulation of relations in the field of collecting taxes and fees shows that one of the principles on which the tax legislation of Ukraine should be based on the principle of uniqueness and stability of the meanings of concepts. In accordance with them, the legal rules of the tax legislation should be formulated clearly. Legal terms should be used in the texts of tax legislation in a logical and consistent manner. That is, the formation of tax terms, their consolidation in modern tax legislation should take place on their own tax base.
 Imperative provisions of the Tax Code of Ukraine, which are based on positive obligations must provide clarity, intelligibility of tax regulations. Another problem, in our opinion, is the question of efficient use in existing Ukrainian tax legislation concepts of ‘special tax regime’, ‘generic tax regime’, ‘tax regime’, ‘special regime’.