TAX BENEFITS AS A KIND OF TAX-LEGAL STIMULUS

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TAX BENEFITS AS A KIND OF TAX-LEGAL STIMULUS

Journal Title: Право та інновації - Year 2018, Vol 3, Issue 23

Abstract

Problem setting. An effective tax system is one of the characteristics of a developed state. One of the problems associated with ensuring the efficiency of the tax system in Ukraine is the low level of voluntary execution of tax obligations in full and in accordance with the statutory terms. In order to ensure that proceeds from the payment of taxes and fees go to the corresponding budgets, the state must apply different ways of influence on taxpayers as obliged to subjects of tax relations. Typically, the legislator provides two types of such ways - positive and negative. Negative should include tax control and responsibility for violating tax legislation, positive - legal incentives. One of the types of incentives in tax law are tax benefits. This kind of legal incentives, according to N.I. Matusov and A.V. Malka contributes to the improvement of the economy and the stimulation of production, since it activates and producers’ and consumers’ interests [8, p. 16]. In financial and legal science has already been done various researches dedicated the legal nature of tax breaks, the distinction of their types and peculiarities of use. In particular, the analysis of legal regulation of tax benefits is devoted to the works of such scholars as: D. A. Kobylnik, M. P. Kucheriavenko, N. N. Lajchenkova, A. V. Ponomariov, N. I. Khimichev and others. However, due to the rapid development of tax relations and the excessive dynamism of tax legislation, the issue of studying tax benefits for taxpayers is becoming increasingly relevant. Thus, the purpose of the article is to characterize tax benefits as a form of legal incentives. Article’s main body. According to the Tax Code of Ukraine, the tax benefit is defined as the exemption for the taxpayer from the obligation to charge and pay tax and collect, pay tax and fees in smaller amount due to the grounds established by law. In addition to the definition of tax benefits, the legislator establishes an exhaustive list of grounds for their provision. In particular, these are: 1) characteristics that define a particular group of taxpayers; 2) the type of activity of taxpayers; 3) the object of taxation; 4) the nature and social significance of the costs incurred by them. So, it can be stated that the granting of tax benefits is associated with a certain homogeneity when the preferential tax treatment implies the existence of a uniform circle of payers or other above-mentioned grounds. It is significant that a completely different approach to the definition of tax benefits is enshrined in the tax legislation of some post-Soviet countries. The impracticality of identifying tax benefits as advantages of one taxpayer over the other is argued, since such an approach would lead to a violation of the principle of equality of taxpayers under the law, and the prevention of tax discrimination. It is proved that installment / postponement of tax payers' tax are not tax deductible. Conclusions. Tax benefits are a kind of tax incentive. They are characterized by the following features: 1) the grounds for the application and types of tax benefits established by the current tax legislation; 2) the purpose of the application is to reduce the tax burden on taxpayers; 3) concern only one component of the tax liability - the payment of taxes or fees (tax accounting privileges or submission of tax reporting is not provided by law); 4) act as one of the manifestations of ensuring the balance of interests of the obliged and power side in tax legal relations; 5) element of the legal mechanism of the tax; 6) carry out encouraging (motivational) and supporting functions; 7) is the right of the respective taxpayer which implementation requires certain actions defined by law are (confirmation of the existence of the conditions under which the corresponding tax benefit is granted).

Authors and Affiliations

E. Yu. SHAPTALA

Keywords

legal incentives; tax benefits; principles of tax legislation; equality of taxpayers; postponement (installment) of a tax debt.

EP ID EP492074
DOI -
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