FISCAL AND REGULATORY ASPECTS OF INCOME TAX ADMINISTRATION IN WARTIME CONDITIONS
DOI:
https://doi.org/10.15330/apred.1.20.306-318Keywords:
income tax, fiscal efficiency, regulatory potential, tax revenues, budget revenues, entrepreneurial activityAbstract
The relevance of the study is determined by the fact that the income tax is a significant source of filling budgets and an important tool for regulating business activity. The substantiation of the directions for optimization of the tax policy of the state in relation to the taxation of the income of economic entities in the conditions of the destructive influence of the war acquires special importance. The purpose of the article is to assess the fiscal significance and implementation of income tax regulatory impact in Ukraine, as well as to determine recommendations on ways to increase the effectiveness of income taxation in the context of stimulating investment processes and expanded reproduction.
The fiscal significance of income tax in the formation of the consolidated budget was determined, the dynamics and composition of tax revenues of the State Budget of Ukraine were analyzed, and the structure of income tax revenues by payers types was evaluated. The factors of reducing the budget-forming role of income tax are outlined. The main efficiency indicators of the income tax fiscal potential realization in Ukraine have been studied. It was revealed that against the background of permanent growth of income tax revenues of enterprises to the consolidated budget, the size of the effective tax rate showed a trend opposite to the dynamics of the financial result before taxation. The overall level of the tax burden on the economy of Ukraine and the tax burden from the income tax in particular was assessed.
On the basis of the conducted research, it was concluded that the current mechanism of income taxation is characterized by the complexity of calculating the amount of tax liabilities and the preparation of financial statements, the presence of wide opportunities for the use of tax avoidance and evasion schemes, the instability of tax legislation, as well as the inability to provide a stimulating effect on processes of encouraging entrepreneurial activity, increasing the need to attract foreign investments and achieving a high level of population employment. It is proposed to transform the income tax gradually into a tax on the withdrawn capital which will allow to optimally combine the instruments of regulatory potential, maximize the final performance indicators of enterprises, balance the tax burden on business and ensure the implementation of the fiscal component of the tax.
References
Bui, T., and O.Primierova. "The impact of income tax on economic growth in Ukraine." Interscience. Series: "Economic Sciences", vol. 2, no. 5, 2020, pp. 113-121.
Gordiychuk, D. "Everything to the state. Ukraine is increasing the number of its own enterprises, but this is not good." Economic truth, November 15, 2022, www.epravda.com.ua/publications/2022/11/15/693846. Accessed 04.23.2024.
Directories of benefits. State Tax Service of Ukraine, tax.gov.ua/dovidniki--reestri--perelik/dovidniki-/54005.html. Accessed 04.07.2024.
The law on taxation of banks will bring an additional 24 billion to the budget - Hetmantsev. Ukrinform, 23.11.2023, www.ukrinform.ua/rubric-economy/3790782-zakon-pro-opodatkuvanna-bankiv-prinese-u-budzet-dodatkovi-24-milardi-getmancev.html. Accessed 04.23.2024.
Reporting on the implementation of the Consolidated Budget of Ukraine. Open Budget, openbudget.gov.ua. Accessed 04.08.2024.
Negoda, Y. V., and L. O. Berezovska. "Assessment of the regulatory potential of the corporate income tax in Ukraine." Economic Forum, issue 2, 2021, pp. 110-117.
Onyshchenko, V. "Tax on the profit of enterprises in 2024." Headmaster, buhplatforma.com.ua/article/7206-platnik-podatku-na-pributok-na-zagalnih-pdstavah Accessed 04.17.2024.
Tax Code of Ukraine : Law of Ukraine dated 02.12.2010 No. 2755-VI. Update: 23.11.2023. Verkhovna Rada of Ukraine, zakon3.rada.gov.ua/laws/card/2755-17. Accessed: 04.17.2024.
Sokyrko, O. S., and D. S. Kasyanchuk. "Enterprise income tax as an important element of revenues of the State Budget of Ukraine." Scientific Bulletin of Kherson State Universit, issue 28, part 2, 2018, pp. 102-104.
“Financial results before taxation of enterprises by types of economic activity.” State Statistics Service of Ukraine, www.ukrstat.gov.ua. Accessed 04.12.2024.
Khomutenko, V. P., and A. V. Khomutenko. "Fiscal efficiency of corporate income tax in Ukraine." Economy and the state, no. 2, 2017, pp. 61–65.
Khomutenko, V.P., and A.V. Khomutenko. "Fragmentary analysis of the mechanism of action of the regulatory function of the corporate income tax in Ukraine." European journal of economics and management, no. 1, 2017, pp. 70-76.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution NonCommercial NoDerivs 4.0 Unported License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access)