scholarly journals Evaluation of the tax benefit effectiveness for certain types of activities in Ukraine (part 2)

2021 ◽  
Vol 2021 (6) ◽  
pp. 40-54
Author(s):  
Alla SOKOLOVSKA ◽  
Keyword(s):  
Tax Incentives ◽  
The State ◽  
Annual Reports ◽  
Effective Control ◽  
Production Cycle ◽  
State Support ◽  
Space Industry ◽  
Council Directive ◽  
State Tax ◽  
Tax Benefits

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.

scholarly journals RETROSPECTIVE ANALYSIS OF THE TAX SYSTEM REFORM OF UKRAINE

2021 ◽  
Vol 2 (37) ◽  
pp. 396-405
Author(s):  
N. Prokopenko ◽  
O. Gudz ◽  
І. Kreidych ◽  
M. Golovko ◽  
O. Kazak
Keyword(s):  
Social Insurance ◽  
Jel Classification ◽  
The State ◽  
System Reform ◽  
State Budget ◽  
Tax System ◽  
State Tax ◽  
Macroeconomic Indicators ◽  
Tax Benefits ◽  
Taxation System

Abstract. The article analyzes the historical periods of development of the taxation system in Soviet times and during the independence of Ukraine. The stages of transformation of the country’s taxation system and the deduction of the development of the national taxation system are outlined. It was found that during the years of independence there were five transformations of the tax system in 1991, 1995, 1999, 2011 and 2015, respectively. The preconditions of each of the specified stages of realization of transformation of system of the taxation are analyzed. Among the key preconditions for transformational changes in certain periods are: rapid deterioration of key macroeconomic indicators, implementation of laws and regulations on the establishment of the tax police and the transformation of the State Tax Administration into a central executive body as a controlling body for legal entities and individuals, changes in the composition and mechanisms of tax calculation, chaos and invalidity of the system of tax benefits, changes in the legalization of the wage fund and in the system of compulsory state social insurance. The functions of taxes as defining concepts of formation of the tax system of the country that were in each period defined above are investigated. The types and role of tax relief as a tool of state tax regulation and stimulation of socio-economic processes are considered. The assessment of the process of transformation of the tax system identified the existing criteria for reform, including diversity, complementarity and consistency, compromise and evolution, the depth of transformation and innovation of the tax system of Ukraine. It is proved that the tools of transformation of the implementation of the taxation system of Ukraine used in these processes did not always correspond to the peculiarities of the socio-economic situation of the country and the tax policy of the state goal and set of tasks of economic strategy. Existing shortcomings in the Ukrainian taxation system hinder economic growth and lead to high economic shadowing. Thus, the application of these tools in the process of transformation of the tax system has partially solved the existing problems, a significant number of identified tasks currently remain unresolved. Keywords: taxation system, taxes, tax deductions, the state budget, taxation. JEL Classification E62 Formulas: 0; fig.: 0; tabl.: 1; bibl.: 18.

scholarly journals TAX POLICY OF UKRAINE IN CONDITIONS OF ECONOMIC INSTABILITY: ANALYTICAL REVIEW

2020 ◽  
Vol 1 (18(46)) ◽  
pp. 85-89
Author(s):  
Yana Solomka ◽  
Natalia Tydir
Keyword(s):  
Tax Policy ◽  
Tax Incentives ◽  
The State ◽  
Strong Impact ◽  
State Budget ◽  
Tax Revenues ◽  
Analysis And Synthesis ◽  
State Budgets ◽  
Analytical Review ◽  
Tax Benefits

The article examines the main results of the tax policy of Ukraine in 2017-2019. The methodological basis of the study are the fundamental postulates of the liberal theory of effective tax policy, formulated by the famous economists A. Smith, A. Wagner and A. Laffer. The article uses general scientific research methods, in particular, analysis and synthesis, induction and deduction, the unity of the historical and the logical, statistical methods, generalization. The purpose of the article is to find out the state of modern tax policy in Ukraine and further prospects for its development. The tax revenues to the state budgets of different levels are analyzed; their economic importance for the country’s economy is substantiated. It was found that tax revenues make up the largest share (80%) of all state budget revenues and all local budget revenues (61%). The calculation of the coefficient of elasticity of tax revenues in relation to the selected indicators showed that a strong impact on the total amount of tax revenues to the consolidated budget of Ukraine has a change in household incomes and sales of industrial products.The coefficient of efficiency of using tax benefits in Ukraine has been determined. It has been proven that tax incentives are used most effectively in financial and insurance activities, construction, industry, and ineffectively in education and health care. This indicates the advisability of reducing the number and size of tax incentives in these areas.The directions of improving the tax policy of Ukraine are proposed. Among the most important are: socialization of taxes, tax incentives for innovative development and investment climate; introduction of differentiated rates of personal income tax; implementation of the principle of social justice of taxation; the introduction of differentiated rates of the environmental tax depending on the discharge of pollutants in a specific region of the country; an increase in trade quotas for the export of goods to EU countries etc. The research results can be used by the state tax authorities of Ukraine. The novelty of the study lies in the analysis of the effectiveness of the tax policy of Ukraine from the standpoint of its impact on socio-economic development in 2017-2019 based on the author’s research methodology.

Ten Principles for State Tax Incentives

1995 ◽  
Vol 9 (4) ◽  
pp. 339-355 ◽  
Author(s):  
Keith R. Ihlanfeldt
Keyword(s):  
Economic Theory ◽  
Economic Development ◽  
Empirical Evidence ◽  
Tax Incentives ◽  
The State ◽  
Incentive Programs ◽  
State Tax

The use of tax incentives for economic development is growing among states. This growth is partially caused by a response to new incentives of neighboring states, and similar incentive laws are passed in the interest of remaining competitive. As a result, many states have adopted tax incentives not well founded on economic theory or empirical evidence. This article draws on the latter to develop ten principles that states can employ to enhance the fairness and effectiveness of tax incentives. To illustrate their application, the principles are used to evaluate the state of Georgia's incentive programs.

scholarly journals Integration, cultural preservation and transnationalism through state supported immigrant organizations: a study of Sweden’s national ethnic associations

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Olle Frödin ◽  
Axel Fredholm ◽  
Johan Sandberg
Keyword(s):  
Welfare State ◽  
The State ◽  
Cultural Preservation ◽  
Political Incorporation ◽  
Annual Reports ◽  
State Support ◽  
Political Activities ◽  
Immigrant Organizations ◽  
Hypothetical Mechanism ◽  
Ethnic Associations

AbstractThis paper explores the activities of Swedish state supported ethnic associations (most of which are immigrant organizations), thus shedding empirical light on how immigrants organize with the help of state support, both nationally and transnationally, in a welfare state context. The paper is based on a study of annual reports of 52 state supported national associations, representing more than a thousand (1046) local immigrant organizations, as well as 17 interviews with representatives of the said organizations. The findings indicate that the welfare state did not crowd out civil societal integration-promoting initiatives, but the state supported immigrant organizations came to occupy a niche in which they primarily offered complementary services with the aim of helping members to navigate the public welfare system. Neither did state support directly shape the content and direction of the political activities of the said organizations. However, the state support seems to have generated welfare channeling effects, in that more immigrant organizations came into existence than would have been the case in the absence of grants. The paper comes down in favor of the thesis that state support in some circumstances can promote political incorporation through immigrant organizations (with a few caveats). Finally, the paper proposes a hypothetical mechanism, homeland-oriented integration, for political incorporation through immigrant organization.

scholarly journals Tax Investment Incentives: Worldwide Experience and Russian Practice

2019 ◽  
Vol 9 (4) ◽  
pp. 618-631
Author(s):  
I. V. Vyakina
Keyword(s):  
Institutional Environment ◽  
Tax Incentives ◽  
Business Environment ◽  
Economic Security ◽  
The State ◽  
Special Role ◽  
Investment Incentives ◽  
Policy Tool ◽  
Multidimensional Complex ◽  
Tax Benefits

Purpose:the main purpose of the work is research of the applying foreign tax experience to stimulate investment in the Russian business environment, taking into account the special role of the tax system in the national economy, it can be as both a factor in creating threats of the economic security and a resource for its provision. To achieve this goal in the article you must accomplish the following tasks: to perform systematization and critical analysis of theories, empirical research and foreign experience in applying tax incentives to attract investments; to identify the features of the tax relations of the state and business and features of the use of tax incentives in the Russian business environment.Methods:methods of systematic, logical and comparative analysis of the scientific literature were used, an analysis of descriptive statistics was carried out taking into account the assessment of hierarchical and correlation dependencies between empirical data.Results:numerous empirical and theoretical studies on the effectiveness of tax incentives as a tool to increase the investment attractiveness of a territory contain extremely contradictory conclusions. The effectiveness of the application of tax benefits differs depending on the conditions of doing business in the jurisdiction. There is no consensus about the effectiveness of tax benefits, the findings of scientists differ depending on the countries and methods. However, despite numerous criticisms, tax incentives remain a popular policy tool for attracting investment in developed, transitional and developing countries.Conclusions and Relevance:tax relations are essentially multidimensional, complex, and their social, political and legal content is initially conflicting, which determines the need to find a balance between the interests of the state and business. The effectiveness of their practical application to attract investment in the Russian reality is increasing in combination with other non-tax factors, such as business conditions, infrastructure, management quality and institutional environment.

scholarly journals Problems of financial and lending support for the agricultural sector of the economy

2021 ◽  
Vol 2 (98) ◽  
pp. 123-134
Author(s):  
S. N. Kolotukha ◽  
◽  
E. N. Melnyk ◽  
O. V. Ponomarenko
Keyword(s):  
Food Safety ◽  
Social Protection ◽  
Agricultural Sector ◽  
Rapid Development ◽  
Developed Countries ◽  
The State ◽  
Production Cycle ◽  
State Support ◽  
Agricultural Insurance ◽  
Agricultural Enterprises

The article is devoted to the relevant issues of determining factors and ways to intensify financial and lending support for the agricultural sector of the economy. In the wider sense, financial and lending support for agricultural enterprises is necessary for financing, growth and development of the state economy. National and foreign experiences demonstrate that the finances of agricultural enterprises have certain specific nature and require permanent crediting. Due to the length of production cycle, seasonality, nature of cost formation and supplies of agricultural enterprises, its own permanent funding source is impossible. Consequently, the attraction and usage of borrowed financial resources is the key aspect of the financial activity of the agricultural sector of the economy aimed at the achieving successful final results. The research shows that in all developed countries the agricultural sector of the economy enjoys the benefits of state support as it directly affects the country’s food safety. It is revealed that the introduced system of funding state support of the agricultural complex does not provide legally determined promotion of agricultural enterprises, their competitiveness, food safety, improvement of the level of social protection for rural population mainly due to imperfect financial system. The issues that impede development for lending to agricultural enterprises and the development of agricultural insurance have been determined which make obstacles to improve their financial security and effective risk management in the agricultural sector in order to enhance the potential of their rapid development. It has been proved that the efficiency of financial and credit arrangement of ensuring the development of the agricultural sector depends on the effective financial policy of the industry and the state as a whole which can help to combine economic interests of agricultural enterprises and the state.

scholarly journals FORMATION OF STATE TAX POLICY MECHANISMS IN CONDITIONS OF UNCERTAINTY

2021 ◽  
Vol 03 (01) ◽  
pp. 123-127
Author(s):  
Ovchar Serhii Ovchar Serhii
Keyword(s):  
Tax Policy ◽  
Social Processes ◽  
The State ◽  
Tax Burden ◽  
Tax Rates ◽  
Public And Private ◽  
Tax Management ◽  
State Tax ◽  
State Tax Policy ◽  
Tax Benefits

The elements of formation of the state tax policy, which envisage the following vectors of tax management development, namely: organizational and legal (fiscal regulation - increasing the mass of tax liabilities of the tax burden); functional-stabilizing (orientation of providing current budget needs and stabilization of social processes); investment (attraction of public and private capital); monitoring of the tax burden (analysis and assessment of the annual volume of tax flows, the consolidated budget of tax flows of the taxpayer, the forecast of key financial indicators), are determined. Methodological approaches to assessing the effectiveness of socially oriented state tax policy in decentralization on the basis of functional-stabilizing approach, by providing current budget needs for stabilization of social processes, which ensures the development of human resources through tax mechanisms (regulation of direct and indirect taxes; regulation; proportions of taxes of different levels, transfer of tax burden from one category of taxpayers to others, regulation of taxes, objects of taxation, methods of calculating the tax base, tax benefits, calculation procedure and payment deadlines). Mechanisms for the formation of state socially oriented tax policy on the following components: functional-targeted (implementation of methods of progressive taxation, compliance with the principles of social obligations of the state and redistribution of income between different categories of citizens to maintain social balance in society); organizational - economic (financial support of social activities of the state; accumulation and expansion of social and regulatory potential of public finances), are developed. Keywords: public administration, state tax policy, civil society institution, tax climate, tax management, tax burden, social processes, tax mechanisms, tax potential, tax rates, socially oriented tax policy.

scholarly journals Directions of review of the system of VAT reliefs in Ukraine

2021 ◽  
Vol 2021 (9) ◽  
pp. 7-35
Author(s):  
Alla SOKOLOVSKA ◽  
Keyword(s):  
The State ◽  
Tax Rates ◽  
The European Union ◽  
State Budget ◽  
Association Agreement ◽  
Council Directive ◽  
Tax Benefits ◽  
Reduced Rate ◽  
Definition Of ◽  
The Eu

In the conditions of searching for ways to fill the state budget, reforming the system of VAT reliefs, losses from which make up more than 70% of total losses from tax benefits in Ukraine, can be an effective alternative to raising tax rates. The purpose of the article is to determine the directions of revision of the system of VAT reliefs in Ukraine in the context of the implementation of the Association Agreement with the European Union and its Member States. The subject of the study are two forms of reliefs – exemptions from tax and the use of its reduced rates. In addition, validity of qualification of the operations specified in Art. 196 of the Tax Code of Ukraine, as those that are not subject to VAT taxation, is considered, and it is established how one or another transaction should be qualified in accordance with Council Directive 2006/112/EC. A comparative analysis of VAT reliefs in Ukraine and the EU countries has shown that in addition to exemptions similar to those provided in the Council Directive 2006/112/EC, the Tax Code of Ukraine includes exemptions from transactions that are allowed to be taxed with the Directive at reduced rates, as well as exemptions which are not provided by the Directive. On the other hand, some mandatory exemptions under Council Directive 2006/112/EC do not apply in Ukraine. There are certain inconsistencies in the definition of transactions, the taxation of which at reduced rates is provided in the Tax Code of Ukraine and in Council Directive 2006/112/EC. The established differences determine the possible directions of revision of the system of VAT reliefs in Ukraine. However, its real scale may be different. Ukraine can go both by minimizing the system of tax preferences by refusing not only the exemptions which are not provided by the Council Directive 2006/112/EC, but also by transforming certain exemptions into taxation at a reduced rate, and by maximizing the opportunities for preferential taxation provided by the Directive. It is concluded that the choice of a certain kind of path will be influenced by the following factors: uncertainty of Ukraine’s accession to the EU, which puts our country not in such a rigid framework in the context of compliance with EU legislation as candidate countries; the state of public finances in our country: the need to expand the fiscal space and the possibility (their absence) of its expansion at the expense of sources not related to tax benefits; the presence of political will at the leadership of the state to optimize tax preferences.

scholarly journals TAX INCENTIVE SYSTEM FOR INNOVATIVE ACTIVITY: STATE AND PROSPECTS

2021 ◽  
Author(s):  
Nataliia Havrilenko ◽  
◽  
Olena Hryshchenko ◽  
Keyword(s):  
Tax Incentives ◽  
The State ◽  
Government Support ◽  
Weak Links ◽  
Technical Equipment ◽  
Negative Consequences ◽  
State Budget ◽  
Tax Benefits ◽  
Low Efficiency ◽  
The Impact

The article examines the mechanisms of tax incentives for innovation of economic entities, which should focus on the development of national production and ensure sustainable macroeconomic growth. It was found that the main problems of the domestic economy, which create barriers to its innovative renewal, are the weak links between science and industry, lack of demand from industry and research and development, very low level of technical equipment of the economy, lack of market motivation for the development of knowledge-intensive production, worn-out equipment and, as a result, low efficiency of the economy as a whole. It is proved that among the main reasons for the reduction of budget revenues in the economy of Ukraine, in addition to the crisis, there are also tax benefits. For certain areas of business, this is one of the most attractive types of government support, as it means that some businesses are starting to pay less taxes. The rest, respectively, must be paid by other business structures or the state receives less money to finance its expenditures. As a result, inequality between taxpayers and a simultaneous reduction in the amount of funds that can be collected by the Ministry of Finance. Thus, in 2019 alone, due to the provision of tax benefits, the state budget did not receive budget revenues equivalent to 1.3 billion US dollars. Total budget losses from this source during 2015-2019 amounted to 6.4 billion dollars. It was found that in Ukraine there is almost no system for monitoring the impact of tax benefits, and this does not allow to assess the future effect of the introduction of such measures. Of course, this has important negative consequences for both public finances and the economy as a whole. The influence of granting tax benefits on the loss of state budget revenues is analyzed. Specific measures aimed at tax incentives for the development of innovation in Ukraine, the introduction of innovations by economic entities of all sizes are proposed. The need to rethink the criteria for granting tax benefits is noted. Foreign practice of tax incentives for innovation and investment activities, the cost of innovation is time-tested and quite diverse. Undoubtedly, it can be useful in the development of this area of tax incentives in Ukraine.

scholarly journals Tax Incentives as an Instrument of Tax Regulation of Ukraine

2021 ◽  
Vol 26 (1) ◽  
pp. 135-140
Author(s):  
Svitlana Savitska ◽  
Keyword(s):  
Large Scale ◽  
Tax Incentives ◽  
The State ◽  
Investment Activity ◽  
Advantages And Disadvantages ◽  
Tax Benefits ◽  
State And Local ◽  
Business Entities ◽  
The Impact ◽  
Tax Regulation

Abstract. Introduction. In modern economic theory, theoretical discussions constantly arise about the feasibility and effectiveness of tax incentives. Tax incentives, under certain conditions, are an effective tool for supporting national competitiveness and creating a new technological core of any economic system, especially a transformational one. At the same time, the conditions for the effectiveness of the benefits provided are their strict purpose, time constraints and constant comprehensive monitoring. In addition, benefits have a certain psychological effect on business entities and increase the investment activity of enterprises. On the other hand, the ineffective practice of preferential taxation contributes to the formation of significant losses of budgetary resources of the state, which leads to a violation of economic stability, a slowdown in economic development and a decrease in the level of financial security of the state. The above confirms the relevance of the study of the impact of tax incentives on the formation of budget revenues, as well as the search for ways to optimize preferential taxation in Ukraine. Purpose. The purpose of the article is to summarize the theoretical aspects of the use of tax incentives as an instrument of tax regulation and to study the effect of preferential taxation on the formation of budget revenues in Ukraine. Results. The theoretical foundations of the functioning of tax incentives are considered. Approaches to the interpretation of the concept of "tax incentive" are generalized and its economic essence is revealed. The advantages and disadvantages of tax incentives, the rights of taxpayers to use tax incentives have been identified. The types of tax benefits in terms of direct taxes have been investigated and systematized. The analysis of losses of the state and local budgets from the provision of tax incentives has been carried out. The main sectors of the economy have been identified and analyzed, where more tax benefits are directed. Conclusions.It was found that the system of providing tax incentives in Ukraine is ineffective. Therefore, there is no doubt about the need to reduce the volume of tax benefits provided to business entities, mainly on non-transparent principles and lead to large-scale budget losses. Tax breaks are not directed to those industries that really need support, but to those that are lobbied in parliament. Therefore, it is necessary to introduce a clear mechanism for the provision of tax benefits, their monitoring, control of losses and benefits of each benefit. Proposals have been developed to improve the system of granting tax benefits and to strengthen control over their development.

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