Tax incentives for R&D in the context of the development of fiscal space

The article deals with the main R&D expenditure based tax incentives such as tax credit and enhanced allowances in the context of the development of fiscal space due to their impact on innovative activities of loss-making, small and medium enterprises as well as startups. The author disclosed basic features of R&D expenditure based tax incentives in comparison with tax exemptions and accelerated depreciation. Cross-country comparisons in OECD revealed that it is often a case when SMEs and startups enjoy R&D tax credit and enhanced allowance with higher rates. In addition, they can also claim full reimbursement of unused tax benefits for R&D while large companies can only count on partial or even non-reimbursement of unused tax benefits and limited carry over period. Implied tax subsidy rates on R&D are analyzed through different OECD countries, as well as through enterprises different in size and profitability. In 2019 the largest R&D tax benefits were offered to profitable SMEs in France (ITSR was 43%) and Portugal (ITSR was 39%). The ITSR methodology is used to work out scenarios of introduction of R&D expenditure -based tax incentives in Ukraine. Calculation results are presented. The state of R&D tax incentives in Ukraine in the case of aircraft industry is analyzed. The introduction R&D expenditure -based tax incentives is argued as a replacement of tax exemptions which are currently used as a measure for R&D promotion in the aircraft industry in Ukraine in terms of improvement of R&D tax support efficiency and spur successful development of high value-added industries as an important prerequisite for the development of fiscal space in Ukraine.

Methodological recommendations on digital rating of enterprises

Introduction. The introduction of tax rating will help to centralize the control over the activities of economic entities by various government agencies. On the other hand, tax rating will avoid subjectivity in the assessment of enterprises by the tax authorities and establish a transparent and understandable work of the tax authorities themselves for taxpayers and society as a whole. The purpose of the paper consists in a thorough study and analysis of international and domestic experience in rating the economic activity of enterprises by tax indicators in Ukraine to develop harmonized and unified guidelines for ranking business entities in the European integration of Ukraine. Results. To determine the company's rating by tax indicators, it is necessary to assess the company's payment of taxes, fees and other tax payments and introduce digital rating of the company's fiscal indicators, which, thanks to two-way communication, will reveal negative phenomena in enterprises and fiscal authorities. When ranking enterprises by tax indicators, it will be possible to avoid the corruption component in the distribution of budget funds, the provision of tax benefits, to identify the most important industries, regions and enterprises that need state aid. Also with the help of this rating and tax indicators, you can calculate the amount by region, region, industry, which large enterprises (unfortunately, the state as well) hide. You can also determine the reduction of gross product due to the large salaries of “predatory” top management. We remind you that Ukraine has a flat scale of taxation of individuals and the main tax revenues under this article are paid by the poor and middle class. That is, in fact, the poor and middle class pay pensions, including to the rich. Comparing the paid taxes and own revenues of the region plus determining the amount of domestic debt with its sources of repayment will significantly strengthen financial and tax discipline both in the center and on the ground. Such measures will significantly improve Ukraine's international image and simplify its entry into the international community. Conclusions. The proposed guidelines for digital rating of tax indicators of enterprises will improve the regulatory framework for determining the rating of the enterprise to obtain a scale of reliability of the enterprise as a business entity, eliminate significant problems of corruption in the fiscal system, improve financial and tax discipline primarily in central authorities, and secondly in industries, oblasts, cities, etc. These recommendations make it possible to establish opportunities for honest enterprises to obtain various privileges from the state and to avoid unreasonable and often ineffective inspections by tax and other authorities.

The Role of Improving the Tax System in the Development of Entrepreneurship During the Pandemic

This article describes the tax benefits provided to businesses in Uzbekistan during the pandemic, their content and amount. As a result of the analysis, the author made the following proposals: to ensure the complete transfer of all taxpayers to electronic accounts in order to prevent breaking the value-added tax chain, as well as to take measures for electronic registration and protection of the power of attorney for the import of goods and materials; consideration of the issue of administering VAT accounting in the form of compensation payments included in income in the form of wages, that is, the cost of food or the cost of food.

PENGETAHUAN PAJAK KEPADA SISWA-SISWI SMA KRISTEN ALMASIH

The purpose of this community service is to fulfill the activities of tridharma college and to help provide knowledge to students and students as the young generation of the nation to provide an introduction to taxes in addition, this activity is to provide tax knowledge and must be fostered a conscious and tax-abiding attitude from an early age, because the obligation to pay taxes is one form of state defense to Almasih Christian high school students to be given. In addition to helping one of the programs of the Directorate General of Taxes, namely The Speaking Tax which aims to provide an introduction to taxes to early childhood because they are the younger generation of this nation. Our partner is a high school in Jakarta. For the first time we will provide counseling in the form of lectures to high school students to be given direct tax knowledge that is heavy and formal, and must be fun but still educating, here we focus on explaining the tax benefits that they can feel early on. The high school students were very enthusiastic in participating in this event and ended the Q&A section.This series of activities is expected to invite young Indonesians to become more tax conscious and increase tax compliance in the future he has earned income. The younger generation is also invited to participate in the defense of the State through tax compliance.Tujuan pengabdian masyarakat ini adalah untuk memenuhi kegiatan Tridharma Perguruan Tinggi dan untuk membantu memberikan pengetahuan kepada siswa dan siswi sebagai generasi muda bangsa untuk memberikan pengenalan tentang pajak Selain itu kegiatan ini adalah untuk memberikan pengetahuan perpajakan serta harus dipupuk sikap sadar dan taat pajak sedari dini, karena kewajiban membayar pajak merupakan salah satu bentuk bela Negara kepada siswa-siswi SMA Kristen Almasih untuk diberikan. Selain untuk membantu salah satu program Direktorat Jenderal Pajak yaitu Pajak Bertutur yang bertujuan untuk memberikan pengenalan tentang pajak kepada anak-anak usia dini karena merekalah generasi muda bangsa ini. Mitra kami adalah suatu sekolah SMA di Jakarta.Untuk pertama-tama kita akan memberikan penyuluhan dalam bentuk ceramah kepada para siswa-siswi SMA untuk diberi pengetahuan pajak yang langsung berat dan bersifat formal, serta harus bersifat fun tapi tetap mengedukasi, disini kita berfokus pada penjelasan manfaat pajak yang bisa dirasakan mereka sejak dini. Para siswa siswi SMA sangat antusias dalam mengikuti acara ini dan diakhiri seksi tanya jawab. Serangkaian kegiatan ini diharapkan dapat mengajak anak muda Indonesia semakin sadar pajak dan meningkatkan kepatuhan pajak pada nanti dia sudah mendapatkan penghasilan. Generasi muda juga diajak untuk ikut bagian dalam bela Negara melalui kepatuhan pajak.

Perry and Windsor

A 2010 federal trial in California, Perry v. Schwarzenegger, ruled that Proposition 8 was unconstitutional and showed that the expert witnesses brought in to testify against marriage equality were either unconvincing or entirely lacking in credibility. Perry was a triumph for the social science consensus supporting gay rights. Moving up the federal court system at the same time was Edith Windsor’s challenge to DOMA, which prevented the federal government from recognizing Windsor’s marriage to Thea Spyer, and therefore prevented Windsor from enjoying the estate tax benefits that married heterosexual couples enjoy. The 2013 U.S. v. Windsor decision overturned a key provision of DOMA, the federal ban on recognizing same-sex marriages and opened the door to legal challenges to every state ban on same-sex marriage.

Does Tax Incentives Affect Future Firm Value for Corporate Sustainability?

This paper investigates how tax benefits for companies affect future firm value and current corporate performance. In addition, this paper also examines the relationship between tax benefits and future firm value for each major industry. The findings of this paper are as follows. First, tax benefits granted to companies improve current corporate performance. The effect of tax benefits that reduce corporate tax costs increases net income, which directly increases current corporate performance, such as ROA (returns on assets) and ROE (returns on equity). Second, tax benefits granted to firms reduce future firm value. Industries that receive tax benefits may have inherent taxation, which can lead to fiercer competition and ultimately lower pre-tax profit margins due to the entry of new companies or the increase in production facilities. In addition, tax benefits that cause temporary differences among the types of tax benefits for a company through deferred tax payments may be factors that hinder future improvements in corporate value. These causes result in the fact that tax benefits for a company can negatively affect its value in the long term. This paper has the following contributions. First, the findings of this paper imply that there is a limit to the positive impact of tax benefits on firms on improving corporate value in the long run. Second, through empirical analysis, this study provides objective information that the impact of tax incentives on corporate value may differ by industry.

Directions of review of the system of VAT reliefs in Ukraine

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.

Fiscal Policy of Economic Development: Comparative Characteristics of Ukraine and Poland

In order to achieve the purpose outlined, this research uses the following methods: analysis and synthesis; economic and statistical analysis and comparison; economic and mathematical; generalization. The result shows that Poland's fiscal policy aims at developing economic infrastructure and building an economic model of the state based on the manufacture of products with a high share of value-added. However, the fiscal policy of Ukraine does not have significant effects on economic development due to the use of such instruments as public debt and capital expenditures. However, the external debt dependence of the state is relatively high. Nevertheless, it proves that the fiscal policy of Ukraine does not increase the level of economic complexity and development of the processing industry through the implementation of tax benefits. It proposes to increase the efficiency of tax authorities in Ukraine in terms of combating the shadow economy, boost the share of capital expenditures and raise the level of conversion of public debt into economic growth.JEL Classification: E62, F63, H21How to Cite:Petrunenko, I., Lavrov, R., Kuybida, V., Slatvinskyi, M., & Zelenskyi, A. (2021). Fiscal Policy of Economic Development: Comparative Characteristics of Ukraine and Poland. Etikonomi, 20(2), xx– xx. https://doi.org/10.15408/etk.v20i2.22013.

Segmentation of Potential Fraud Taxpayers and Characterization in Personal Income Tax Using Data Mining Techniques

This paper proposes an analytical framework that combines dimension reduction and data mining techniques to obtain a sample segmentation according to potential fraud probability. In this regard, the purpose of this study is twofold. Firstly, it attempts to determine tax benefits that are more likely to be used by potential fraud taxpayers by means of investigating the Personal Income Tax structure. Secondly, it aims at characterizing through socioeconomic variables the segment profiles of potential fraud taxpayer to offer an audit selection strategy for improving tax compliance and improve tax design. An application to the annual Spanish Personal Income Tax sample designed by the Institute for Fiscal Studies is provided. Results obtained confirm that the combination of data mining techniques proposed offers valuable information to contribute to the study of tax fraud.

Innovation Process as One of the Key Factors in Anti-crisis Management

The issues such as the role of the innovation process in the company's anti-crisis management are relevant and important for running a business, maintaining competitiveness and developing a company in times of crisis. Whereas in the context of the globalization of international markets, the system that fails to appreciate the role of innovation potentially faces a tendency to weaken its market position, to lose customers and to reduce its profitability. All this contribute to the emergence of a crisis situation and eventually leads to the collapse of the entire system. Thus, the development of innovative direction is one of the priority directions to reach a new level of development of the company. Moreover, for the development of innovative management in our country, it is important to take the following key steps, such as: creating the infrastructure for scientific research institutions; Promoting investment in innovative enterprises; Improving the legal framework in this regard; Improving the system of tax benefits; Facilitating patent-licensing regulations to disseminate and implement innovations; Establishing a comprehensive risk insurance system in the country; Creating a mechanism for disseminating technological and other type of innovations, etc. Innovative management plays a crucial role in anti-crisis management. During studying the anti-crisis management mechanism, we came to the conclusion that its main basis is the use of innovative forms, methods and techniques. Moreover, the development process does not end with more sophisticated technological decisions, but rather the innovative technology must necessarily go through all the stages of improvement in innovative structures. All these will become the basis for a complex anti-crisis policy that will facilitate the operation of the company in a modern business environment. Keywords: Innovations, Crisis, Anti-crisis Management, Innovative Strategy, Innovative Potential.