The second part of the article considers the consequences of assessing tax benefits for cinematography and the space industry, which they enjoyed in 2014-2019. Since these types of activities, in addition to tax benefits, also received direct state support in the form of expenditures on targeted budget programs, the effectiveness of their aggregate state support was analyzed. It was found that for both activities it was quite effective. At the same time, of the four types of activity which were the subject of analysis, the largest state support during this period was provided to cinematography, the smallest – to the space industry, which indicates real state priorities. The analysis of state support for priority activities in Ukraine showed that the most common form of tax benefits provided to them, in contrast to EU countries, is exemption from VAT for transactions of supply of goods to the customs territory of Ukraine. However, the application of such a benefit (this exemption becomes a benefit only in the case of a long production cycle), firstly, requires the establishment of effective control at customs over the legality of its provision and accounting for the amount of the benefit and losses of budget revenues due to its provision, as well as the transfer of relevant information from the customs authorities to the State Tax Service for the purpose of taking them into account in general reports. Secondly, considering that this contradicts the requirements of Council Directive 2006/112/EC, its truly temporary application must be ensured. In general, according to the results of the study, it was concluded that the introduction of constant monitoring of the effectiveness of the use of tax benefits requires clarification of the list of benefits that are losses of budget revenues, and that do not lead to such losses; providing public access to the reports of the State Tax Service on the amounts of benefits that are losses of budget revenues; ensuring proper control over the legality of the application of tax benefits, the completeness and accuracy of their accounting, the fulfillment of the conditions for the provision and targeted use of funds released as a result of the application of tax incentives prescribed in the legislation; inclusion of information about tax expenditures in reports on the execution of state budget, preparation of annual reports on the fulfillment of the conditions for the provision of tax benefits defined in the Tax Code of Ukraine; in case of using temporary tax incentives, a mandatory audit of their effectiveness and efficiency as a prerequisite for extending the period of their use.
Military-economic interests, tax incentives and their impact on state tax system
