Tax Relations: Current Thinking and New Realities

Baltic Journal of Economic Studies, 2020

Today, almost every state feels the impact of the financial crisis and is looking for ways to overcome it. It is obvious that the development of economic relations of any state is influenced by taxation, and through taxes, the state has an impact on the property of individuals and legal entities. At the same time, establishing the optimum level of taxation for both taxpayers and the state is an important factor for economic uplift, ensuring the balance of public and private interests in tax and legal regulation, under which there is a proper financial support for the performance of the tasks and functions by the public authorities with reasonable and justified interference of the state in the right of private ownership of persons by means of the taxes. The construction of the tax system, the amount of taxes and their rates should not depend solely on the funds necessary for the state. This process is also influenced by other factors that find their objectification in the relevant principles, because taxation should be reasonable. The purpose of the article is to characterize certain economic principles, which should be the basis of taxation and which should be defined in tax legislation. This will be performed with the dogmatic method, the methods of analysis and synthesis, the systemic method and the case study method. The basis for building the tax system, determining the amount of taxes, the size of their rates, is in the economic factors, which should be taken into account to ensure the effectiveness of taxation and tax regulation as a whole. They have their reflection in the relevant principles as the initial provisions of taxation, acting as fundamental in regulating tax relations. The range of economic principles, which taxation is based on, and the content of which is currently debated in scientific circles, is as follows: proportionality (taxability), cost-effectiveness of taxation, fiscal sufficiency, economic basis of tax, economic justification for tax. They do not exist in isolation from each other, but constitute a clear system, in which their logical connection and influences are traced. Results. Proportionality as a principle of taxation is determined by analyzing the payer's financial position, the actual ability to pay taxes, and the economic benefit he/she receives in the course of paying taxes and fees (the economic result of the payer). The principle of cost-effectiveness of taxation means that the establishment of taxes and fees should be such that the amount of revenues from their payment to the budget exceeds public expenditure and leads to effective taxation (the economic result of the state). The principle of tax sufficiency provides a reasonable restriction on those public needs that need to be met through taxpaying, since these needs cannot be absolute. The principle of the economic basis of the tax indicates source for its payment, which is formed by the corresponding taxation of transactions or other taxable objects. The principle of economic justification for the tax determines the set of relevant factors that allow to approach the characteristics of taxation in different ways, taking into account certain economic indicators, by ensuring that the balance of private and public interests in tax and legal regulation is achieved. In fact, it combines an assessment of compliance with the principles of proportionality (taxability), costeffectiveness of taxation, tax sufficiency, and the economic basis of tax. The results obtained are original, they will allow to improve the normative provisions before consolidating the principles of taxation in tax legislation.

Economica, 2019

The study of taxes has been an important concern of a great number of economists of all times, doctrines and currents of economic thinking. This paper presents some representative opinions of some foreign and Romanian, classic and contemporary economists regarding taxes. This study also provides a scientific selection of the opinions regarding the actual tax instruments, in order to group the main theories about taxes by author (school, direction of thinking), or theories elaborated by them, ideas that Romanian taxation has taken more or less in its practice.

2019

The focus of tax reforms in Ukraine, the development of partnerships between payers and supervisors requires new approaches to tax control. The current state of the functioning of the tax control system in Ukraine shows the necessity and at the same time its unpreparedness to transition to more advanced forms, including horizontal monitoring. The purpose of the article is to substantiate the need for effective interaction between taxpayers and controlling bodies in the context of improving the quality of tax control. The methodological basis of the study, in particular the theoretical positions, is the methods of scientific abstraction, induction, deduction, logical method, etc. For analytical research mathematical methods were used, in particular correlation-regression analysis, methods of comparison and grouping, synthesis, tabular and graphical methods. As a result of the research, it was found that the main factors hindering the implementation of horizontal monitoring in Ukraine are the lack of compliance with the legislative framework, the insecurity of the confidentiality of information on the activities of taxpayers, corruption in the DFS, large amounts of shadow economy in the country, etc. At the same time, the high level of inconsistency of the assessed tax liabilities and a considerable number of disputes as a result of this also confirm the low level of trust and cooperation between the DFS authorities and the payers. The analysis of the state of tax audits and the dynamics of tax debt-the calculation of correlation relationships between these indicators (R 2 =-0,92) and the forecast of tax debt-showed that preventive tax control measures do not discipline payers to pay them tax arrears, the conducted tax inspections have a positive effect on the repayment of the tax debt by the payers. Such research results indicate that there are problems in establishing trusting relationships between 208

Economica, 2019

We could note the fact that all the theories related to taxes tend to justify their need, both for the state and for the taxpayers, hiding the fact that they are more favourable to the state than to the taxpayers. Having formulated these theories, the authorities strive to justify the extent of taxation and fiscal pressure; they want to demonstrate a certain horizontal and vertical fiscal equity, which in reality, most of the time, does not exist in practice. These fiscal theories have tried to prove, more or less scientifically, the increase of fiscal pressure by imposing new taxes and fees or by increasing the size of existing taxes, they have tried to motivate the quality of taxes as an instrument for regulating the economy, in the sense that they had to maintain inflation for certain periods at a certain level, they have sought to emphasize the need to redistribute income and wealth from taxpayers to the state. It is known, however, that the state, by means of its ruling parties...

EUROPEAN RESEARCH STUDIES JOURNAL, 2018

The article stands for the theoretical underpinning of economic grounds of tax system and its building on the basis of social-and business-oriented socioeconomic features. Authors proved the need for tax process management that represent the features of government-society-taxpayer relations with taxpayer's leading role as macroeconomic tool for economic regulation process as well as providing the sustainable and balanced economic growth and innovative modernization of Russian economy.

European Scientific e-Journal, 2022

The article considers the essence and modern conditions of tax policy functioning in Ukraine and the directions of its optimization in the context of harmonization of the tax system are offered. The formation of the author's vision of the economic essence of tax policy was carried out on the basis of analysis of scientific opinion of scientists from different countries, as well as the official interpretation using the dialectical method. With the help of a group of analytical methods, the conditions for the functioning of Ukraine's tax policy in prewar and wartime were assessed. The use of abstract-logical method contributed to the generalization of key objectives of tax policy in the future and outline areas for its optimization. Based on the results obtained, in connection with the changing economic environment of the country, the need to develop a new model of tax policy, taking into account the demands of tax participants and budget needs, which would be an effective complement to the tax system.

Tax is an economic phenomenon, a pure legal approach remain insufficient to imple-ment the principles of equality and ability to pay, so the necessity to discuss the eco-nomic approach method in the field of tax law rises. The concept of economic ap-proach has a multidisciplinary framework on the basis of the interaction and interde-pendence of tax law and civil law within tax avoidance, evaluation of the taxable event, interpretation, and characterization of facts, proof and design of the legal norms. The lack of clarity and unity on the concept are the main points of criticism on the economic approach. This study aims to examine the characteristics, scope, limits and application of the economic approach in the framework of law and economic doctrines, in the basis of the principles of tax law within statute law and various national and international ju-risprudence such as in the UK "Duke of Westminster", in the US "Gregory v. Helvering” and in Germany "Pfennig Decision". In this study it was also found that economic approach is based in the area of econom-ics and designed in the area of law. It is a method used to characterize the facts and to harmonize the economic and legal methods with each other in the theory and prac-tice of tax law. At national and international level it was seen that the limit of eco-nomic approach is determined by the principle of legality. The application of economic approach can differ by country to country however; its main function is to determine the real economic nature and content of the transactions related to the taxable event. On this framework different terms such as “substance over form” or “economics sub-stance” can be used. In this study it was found that the general objective of the ap-proach is to balance the conflict of interests between taxpayers and the government. In conclusion, the application of the economic approach at national and international levels requires an interdisciplinary work. Thus the principles of legality, equity and ability to pay can be applied rationally in tax law.

2009

1 In Soviet times, most individuals never had direct contact with the tax authorities. The majority of taxes were hidden from the people who ultimately bore them, with the result that most individuals were not even aware that, indirectly, they were paying a large amount of taxes. Thus, a "tax consciousness" or tax culture never developed.

STUDIES AND SCIENTIFIC RESEARCHES. ECONOMICS EDITION, 2020

This research was carried out to determine the weight of taxation in economic development, the main purpose is to discover the level of impact of taxation on economic development or if it has any impact. Another key objective is to improve the level of understandability and find probable solutions toward issues in taxation within the Kurdistan region, as well as unveiling the Kurdistan Regional Government’s taxation system in compliance with the up to date old Iraqi tax laws. KRG is barely surviving this crisis, with the increase of unemployment and poverty could taxation work as an aid to support the piles of the region. The current corruption in the government that does not use tax money efficiently and lack of transparency has been evaluated. Primary and secondary research methods were used to be able to gather information in order to reach an understanding. The primary source of data includes personal interviews and questionnaires, meanwhile, the secondary source of data include...

ECONOMY AND SOCIOLOGY: Theoretical and Scientifical Journal, 2017

The relevance of the research topic to today’s realities lies in the fact that one of the indicators, which makes it possible to evaluate the tax policy effectiveness at macroeconomic level, is the indicator of the tax pressure. Nowadays, an important component of the effective financial management is considered the efficient tax planning and the tax pressure management, which is one of the key factors for a successful economic activity. It is important to understand that the state's purpose is to collect sufficient taxes to ensure the good operation of all state functions, and along with this, to avoid an excessive tax pressure and not to allow it to repress the economic activity of the economic agents. The purpose of this study is based on the argument that the indicator of the tax pressure on the economy, unfortunately, does not reveal the actual level of tax exemptions based on the country's GDP. The study is based on using modified methods of calculating the indicator o...

European Proceedings of Social and Behavioural Sciences, 2021

This is an Open Access article distributed under the terms of the Creative Commons Attribution-Noncommercial 4.0 Unported License, permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Economic Affairs, 2023

Sopronenkov, I., Zelisko, N., Vasylyna, V., Lutsenko, I., & Saienko, V. (2023). Tax policy: impact on business development and economic dynamics of the country. Economic Affairs (New Delhi), 68(04), 2025-2034. DOI:10.46852/0424-2513.4.2023.14 (Scopus) The optimal system, structure, and effectiveness of the tax system depend on many factors and are characterized by several differences depending on the country's social and economic development. The purpose of the academic paper is to identify the features of the impact of the EU-27 countries' tax policy on business development and economic dynamics to determine the differences in this correlation. Methodology. The statistical and regression analysis of the tax structure of the EU-27 countries is used in the scientific article to evaluate its correlation with economic dynamics for the period 2000-2022 based on the average values for the following periods:

Procedia Economics and Finance, 2015

Taxation is at the heart of citizens' relationship with the State. Taxes have significant effect on individual population groups, and become an important political tool as well. Nevertheless, although most countries have adopted similar principles for the operation of their tax system, there remain many differences in the way it is implemented. There are a number of variations in the application of value added taxes and other consumption taxes, including different interpretation of the same or similar concepts. This article is focused on the analysis of the opinions of different groups of inhabitants on the size of the value added tax, on the size of the real estate tax, on the issue of complicated system with lots of exceptions, and on the issue of frequent changes in taxes. The analyzed issue is a part of a broader context which has been solved within the project of specific research conducted by the team from the

Investment Management and Financial Innovations

The tax administration effectiveness depends on the level of tax revenues and economic system functioning and the stable economic development of any government. The article considers institutional aspects of tax administration. The purpose of this study is to describe, evaluate and search for the development prospects of the organizational model of tax administration. The authors describe the contemporary condition of the Republic of Kazakhstan tax authorities’ organizational structure. Moreover, the international practices of the tax administration’s organizational system in modern realities is overviewed. The tax administration effectiveness is evaluated by the correlation-regression analysis of the tax authorities’ activity indicators. As a result, the relationship between the degree of effectiveness of tax administration and key performance indicators of tax authorities were identified and evaluated. Based on the conducted theoretical research, this paper reviewed tax administra...

2004

This paper discusses the current state of taxation and public finance in the Russian Federation and compares some aspects of Russian public finance to other CIS and Eastern European countries and to selected OECD countries. The paper begins with a discussion of the present tax system and structure in Russia, then places the Russian system in perspective by comparing certain aspects of the Russian system to those of other countries. Comparisons of tax burden as a percentage of GDP are made with other former Soviet republics as well as selected OECD countries. A ranking is done to determine where Russia fits on a relative scale. Percentage breakdowns are also given by major tax category. Several comparisons are also made using the Tax Misery Index statistics. Interestingly, Russia does not fare too