HARMONIZATION OF PERSONAL INCOME TAXATION: IS IT POSSIBLE AND IF SO, DOES IT MAKE ECONOMIC SENSE?

The main research question is based on the thesis that harmonization of personal income taxation in the European Union is, on the one hand, not possible and, on the other hand, not advisable Harmonization of income taxes is much more difficult than harmonization of indirect taxes from the practical, technical and legal perspective and is a result of: (a) when creating the Treaty of Rome it was decided that direct taxes would not have a notable impact on the operations of the internal market, and that approach led to a lack of appro-priate regulations, especially in the area of personal income taxes; (b) income taxes, as forms of direct taxation are an important tool for fiscal policy that affects social and eco-nomic activities and it is difficult for politicians to abandon this tool for managing national policies; (c) directives requiring the formulation of direct tax harmonization must be agreed upon with a majority vote in the national Assemblies (Parliaments), which leads to a lack of consensus on desired aims, costs and benefits, procedures; (d) progress in direct tax harmonization creates an aura of challenges to the tax independence if nations and leads to entrenchment of state and elite positions; (e) EU States Mmember states have different rules for remunerating employees, setting incomes from retirement funds and affecting the structure of income-generating costs and expenditures that reduce the tax base.

TOROPETSKY UEZD IN THE MIDDLE AGES IN RUSSIAN HISTORIOGRAPHY: FACTORS OF FORMATION OF TERRITORIAL-ADMINISTRATIVE DIVISION AND SETTLEMENT

Статья посвящена особенностям формирования территориально-административной структуры территории Торопецкого уезда в трудах отечественных историков. Пристальное внимание обращено на развитие Торопца в период его вхождения в состав Великого княжества Литовского. В этот период продолжали развиваться тенденции - налоговые, политические и промысловые - древнерусского периода. Среди факторов, оказавших влияние на формирование территориально-административного деления и поселенческой структуры, выделены периферийное положение Торопца, его статус господарского населенного пункта, прямой сбор налогов и одновременно сохранение относительной самостоятельности, что вызвало споры в отечественной историографии. В историографии отмечается также вовлеченность населения в промысловую деятельность, что повлияло на формирование особых территорий - перевар - в Торопецком уезде. Выявлена также специфическая организация поселенческой структуры в виде гнезд поселений. The article is devoted to the characteristic of the formation of the territorial-administrative structure of the territory of Toropetsky uezd in Russian historiography. Much attention is given to the development of Toropets as a part of Lithuania, it was continuing to develop the taxing, political and working tendencies of ancient Russia. Among the factors that have influenced on the formation of the territorial-administrative division and settlement structure, there are the boundary position of Toropets, its status as a Grand Duke’s settlement, direct tax collection and at the same time the preservation of relative independence, which caused controversy in Russian historiography. In historiography there is also the engagement of people in forest bee-keeping that have influenced on the formation of special territories - perevaras - in Toropetsky uezd. The specific organization of the settlement structure in the form of settlement nests is also revealed.

Direct Tax for Digital Platform During the COVID-19 Pandemic: Study in Indonesia

The article describes a new method/idea about taxing the income towards the digital in Indonesia during the COVID-19 Pandemic. Since social and physical distancing has fertilized the trend to conduct trading activities through the electronic system and provide a level playing field, then the policies for direct tax (income tax) in the trading activities utilizing electronic systems were issued in Law Number 2 of 2020. To obtain data and information in this study, the authors used qualitative research methods. Considering that direct tax has been regulated in Indonesian legislation, this study uses a normative juridical approach without neglecting empirical facts in developing the digital economy. The application of this regulation is assessed based on the Tax Law in Indonesia by focusing on several aspects such as legal certainty and tax jurisdiction. Based on the tax philosophy in Indonesia, Law Number 2 of 2020 is considered as lacking in providing legal certainty and policies regarding the income tax for the trading activities utilizing the electronic system. It is considered a unilateral measure. This study on income tax is relatively new in facing the rapid development of the digital economy, especially regarding a permanent physical establishment that is considered irrelevant.

Fiscal policy and economic growth: Evidence from Central and Eastern Europe

This study aims to estimate the impact of three fiscal instruments (direct tax revenue, indirect tax revenue and government consumption expenditure) on the economic growth of ten new European Union member states from Central and Eastern Europe– Bulgaria, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. We examine the hypothesis about the effect of expansionary fiscal policy on economic growth. The study employs a vector autoregression and annual Eurostat data for the period 2007–2019. Four control variables (the shares of gross capital formation, household consumption, exports in GDP, and the economic growth in the euro area) are included in the model to account for the influence of non-fiscal factors on economic growth. The empirical results indicate that the real output growth rate in the ten new member states of the European Union is negatively affected by direct tax revenue, while economic growth in the euro area, exports and gross capital formation are positively related to economic growth. The results also imply that government consumption and indirect tax revenue have no significant impact on the growth rate of real output of the ten studied countries from Central and Eastern Europe. It may be inferred that policymakers in the new European Union member states can raise economic growth by encouraging exports and investment and by lowering the share of direct tax revenue in GDP. From the three analyzed fiscal instruments (direct taxes, indirect taxes and government consumption expenditure), only one has proven to be effective in the case of the new member countries.

Toropets in the Territorial and Administrative System of the Grand Duchy of Lithuania and the Moscow State at the End of the 15th — 16th Century

The article is devoted to the peculiarities of the territorial, administrative and settlement structure of Toropets and Toropets uezd at the end of the 15th — 16th centuries. During the period when Toropets was part of the Grand Duchy of Lithuania, it was influenced by its peripheral position and its status as a state settlement, direct tax collection and at the same time maintaining relative independence. Communal traditions inherited from the Old Russian period were also preserved. The involvement of both urban and rural population in crafts activities was recorded, which influenced the formation of special territories (perevaras) in the Toropets uezd. The territories of volosts and a perevaras according to the scribe book of 1540 were localized. The territories of perevaras were within the borders of volosts. The inhabitants of the volosts and the townspeople of Toropets owned the side honey trees. In the city, the yards of shabry are recorded — the collective landowners, and in the county, on the territory of the crossing — the “nest” of settlements under a generalizing name, which served as a means of identifying the object of taxation. After Toropets joined the Moscow state, these features remain. However, the community land ownership and honey craft gradually decline throughout the 16th century.

THE SYSTEM OF DIRECT TAXATION IN UKRAINE

For the development of any country, everything in the country's economy needs to work at the highest level. This article is devoted to the system of direct taxation in Ukraine. It is determined that the main document regulating taxation is the Tax Code of Ukraine. The Tax Code clearly states that the tax is a mandatory, unconditional payment to the budget received from taxpayers. The direct taxation system in Ukraine could be better, but a number of problems prevent it from functioning fully. Direct tax is important for the activities of producers of various goods. The system of direct taxation in the world occupies a significant niche, in turn, as in Ukraine. Therefore, for development, it is necessary to start relying on the experience of the countries of the World. From this we get that it is important to reform the taxation system in Ukraine, starting with direct taxation. The direct tax system has many benefits that do not allow obtaining financial resources in full. Analyzing the data on the consolidated budget in Ukraine, it can be noted that it is formed from 80% of tax revenues. This is not enough by European standards. This suggests that in Ukraine the suboptimal structure of the revenue side of the state budget. Examining the factors influencing the system of direct taxation of individuals and legal entities, it was found that the most important qualitative factor from the standpoint of fiscal orientation is the level of tax evasion. The problem of taxation at all times, and especially in our time and for our country is extremely relevant, because it is taxes that are the source of income to the state, without which no country can exist. Direct taxes and are the basis for taxation. Direct and indirect taxes are also important for tax culture. Tax culture is important for effective tax collection. This can be explained by the receipt of income and income taxes, which depend on the correctness of the declaration of these incomes. In European countries, declaration is a prerequisite for every citizen, and public morality is focused on condemning those who hide something. In turn, this culture in society in Ukraine does not yet have a proper level. Therefore, the country should pay more attention to the control of the direct taxation system and create conditions for the payers of these taxes.