The Theoretical Foundations of the Tax Transfer Classification

The article is concerned with deepening of studying of the essence of tax transfer as an economic category, in particular by means of classification of tax transfer according to three criteria: mechanism for tax inclusion in price, type of tax, and tax jurisdiction. The direct and reverse directions of tax transfer as a whole are characterized, depending on the mechanism for tax inclusion in price. The authors generalize the studies on mechanisms for transfer of such main taxes in Ukraine as value added tax, corporate income tax and income tax of individuals, analyze possibilities of their transfer. The demarcation of taxes as to tax jurisdiction that happen within the borders of one country and going beyond the borders of one country, in particular making use of offshore territories, is made. At the same time, regarding the transfer of taxes within one country, the emphasis is placed on using a simplified tax system in Ukraine in the processes of tax transfer, maximizing profits and minimizing tax payments

Налоговые реформы в Украине и Грузии: эволюция приоритетов

The Georgian and Ukrainian tax systems both emerged after the collapse of the USSR, yet the tax reforms in the two countries pursued different trajectories and produced different outcomes. The article systematizes and compares the results of the tax reforms in Ukraine and Georgia. The study applies qualitative methods for historical analysis, for periodization of the reforms and for classifying their key priorities and the factors that influenced them. Quantitative methods are applied to compare the tax burden in Ukraine, Georgia and OECD countries. The success and failure of the tax reforms was measured by the index of economic freedom (including its component – the index of tax burden). The first hypothesis suggested that a reduction in the tax burden had a positive impact on the indicators of economic freedom; the second hypothesis stated that a reduction in the tax burden affected fiscal freedom but did not affect the index of economic freedom. Regression dependences of the average tax burden (including the tax burden resulting from social security contributions) and the index of economic freedom (including the index of tax burden) were built in the R environment. The regression analysis confirmed the first hypothesis for Ukraine and the second, for Georgia. This result can be explained by the fact that, unlike Ukraine, the Georgian tax reforms focused on institutional changes, which determined their success. In 1996–2018, Georgia rose in the ranking of economic freedom and joined the group of economically free countries. Moreover, this country has been steadily improving its position in the ranking. Ukraine, on the contrary, has remained in the group of economically unfree countries. Due to the unbalanced reforms and insufficient structural changes, the country’s government failed to ensure the desired effect from the tax burden reduction.For citationBedianashvili G., Ivanov Yu. B., Paientko T. V. Tax Reforms in Ukraine and Georgia: Changing Priorities. Journal of Tax Reform. 2019;5(2):107–128. DOI: 10.15826/jtr.2019.5.2.063Article infoReceived June 25, 2019; accepted July 27, 2019Становление и развитие налоговых систем Грузии и Украины имели одну отправную точку – распад СССР, но пути реформирования были разными, что повлияло на результаты реформ. Целью статьи является систематизация и сравнительный анализ результатов налоговых реформ двух стран. Качественные методы исследования применены для исторического анализа и периодизации налоговых реформ в Украине и Грузии. Выявлены факторы и приоритеты налоговых реформ в исследуемых странах. Изменения налоговых систем структурированы в соответствии с выделенными этапами. Количественные методы использованы для аналитического сравнения налоговой нагрузки в Украине, Грузии и странах ОЭСР. В качестве индикатора результатов налоговых реформ выбран индекс экономической свободы, и его составляющая – индекс налоговой нагрузки. Сформулированы две гипотезы: (1) снижение налоговой нагрузки положительно отразилось на показателях экономической свободы; (2) снижение налоговой нагрузки повлияло на фискальную свободу, но не повлияло на индекс экономической свободы. С помощью программной среды R построены регрессионные зависимости средней налоговой нагрузки (включая налоговую нагрузку по взносам на социальное страхование) и индекса экономической свободы (включая индекс налоговой нагрузки). Результаты регрессионного анализа показали, что для Украины подтвердилась первая гипотеза, для Грузии – вторая. Полученный результат объясняется тем, что проводя налоговые реформы, Грузия, в отличие от Украины, сделала акцент на институциональных изменениях в сфере налогообложения. Как результат, грузинские налоговые реформы оказались более успешными, и страна за период с 1996 по 2018 г. в рейтинге экономической свободы смогла подняться в группу экономически свободных стран и ежегодно повышать рейтинг в этой группе. Украина так и осталась в группе экономически несвободных стран, поскольку несбалансированность налоговых реформ, недостаточные институциональные и структурные изменения не дали ожидаемого эффекта от снижения налоговой нагрузки.Для цитированияБедианашвили Г., Иванов Ю. Б., Паентко Т. В. Налоговые реформы в Украине и Грузии: эволюция приоритетов // Journal of Tax Reform. – 2019. – Т. 5, № 2. – С. 107–128. – DOI: 10.15826/jtr.2019.5.2.063Информация о статьеДата поступления 25 июня 2019 г.; дата принятия к печати 27 июля 2019 г

Reformation of Taxation of Income and Added Value in the Context of Legalisation of Financial Flows

The article is devoted to the study of the potential of taxation tools of legalisation of financial flows. The goal of the article is justification of directions of reformation of taxation of income and added value in the context of legalisation of financial flows in Ukraine. Pursuant to results of the study the article shows that using taxation tools it is possible to legalise and increase both taxation financial flows and a part of the financial flows earlier moved to the shadow sector of economy. First of all, budget receipts from income tax could be increased by means of reduction of this tax evasion. This could be achieved with the help of the mechanism of differentiation of income taxation, namely: application of a reduced income tax rate, which is directed at investments into the fixed capital, and a standard rate for the income distributed for other purposes. This would create conditions when tax evasion becomes unprofitable for tax payers. Second, reducing VAT evasion would result in its growth in budget receipts. To do this it is recommended to use the reduced rate during taxation of food supplies and public transportation services, which would allow reduction of the VAT evasion degree in the sphere of small and medium businesses (not connected with export) that are engaged in these types of activity. The size of the reduced rate is identified by elasticity of the shadow added value and VAT multiplier. Third, it is possible to increase financial flows by means of attraction of a part of financial flows, earlier moved into the shadow economy, into economy and mobilisation into the budget using the mechanism of tax amnesty. Using foreign experience the article justifies optimal conditions of amnesty and size of the rate of income legalisation

Managerial accounting in the implementation of deliverology using the example of Ukraine

The article is devoted towards the application of managerial accounting for deliverology development at the local government level in countries and comparing them to the stage of fiscal decentralisation implementation in Ukraine. The aim of the article is to show how the application of the managerial accounting approach in the public sector can contribute to the introduction of deliverology at the local level using Ukraine as an example. The methodology is based on the application of Difference in Difference method for the implementation of deliverology at the local government level. It has been proved that the use of multi-criteria decision-making methods in the analysis of the performance of budget programmes at the local level will contribute to the improvement of public services delivery. The main contribution of this study is to provide the basis for developing recommendations for the use of a single or uniform standard of electronic databases on regional development indicators and local budgets. This will help to ensure operational control over deviations of actual indicators from planned ones, as well as identify regions where local authorities are using resources inefficiently

The Ideology, Pragmatics, and Effectiveness of the Tax Reform in Ukraine

The article is dedicated to the assessment of the ideology and pragmatics of the tax reforms in Ukraine. The author’s approach to studying the problem differs from the traditional approaches, which are focused on assessing the fiscal effectiveness of taxes, and is aimed at evaluating the validity of such reforms and their benefits for the society with consideration for long-term development of the country. The purpose of the article is to assess the ideology and pragmatics of the tax reforms in terms of their validity and effectiveness for the society. There analyzed the vectors of the tax reforms concerning the main budget-forming taxes: profit tax, personal income tax, VAT. A comparative analysis of the trends in taxation of incomes and value added in Ukraine and the world is carried out. It is substantiated that the goals of the tax reforms declared by the authorities in Ukraine were either contrived or were never achieved. The real goals of the endless reforming were the creation of broad opportunities to avoid taxation on the “legitimate” grounds for the oligarchic clans. It was the avoidance of taxation that created the prerequisites for their accelerated enrichment, which was used mainly with unproductive purposes and did not contribute to the development of the national economy. In view of this, we consider it necessary to give a negative assessment of the tax reforms that were carried out in Ukraine. In addition, the result of the tax reforms was the inadequate filling of the budget with tax revenues and, consequently, very limited financing of the social sphere, whose state is recognized by the government itself as at the least unsatisfactory, being in fact catastrophic. Thus, the impartial assessment of the tax reforms in Ukraine testifies both to their inefficiency, and the negative consequences for the society, on the one hand, and the full realization of the targets for the oligarchs, on the other

Factors of Formation of the tax Potential of the Securities Market

The article is devoted to the problems of identification of factors that influence volumes and dynamics of the tax potential of the securities market. The goal of the article is detection and systematisation of factors of formation and realisation of the tax potential of the securities market. In the result of the conducted study it systemises factors of formation and realisation of the tax potential of the securities market by two groups: economic and legislatory organisational. The main of the economic factors are: state of economic development, degree of the shadow economy, level of savings of the population, level of trust of the population and level of inflation. The article justifies interconnection that exist between the said factors and volumes of the tax potential of the securities market. In particular, it proves that increase of volumes of the shadow economy facilitates reduction of the tax potential of the securities market, since it facilitates outflow of capital from the official sector of economy. Growth of unorganised savings of the population, the volume of which grows proportionally to the growth of the level of distrust of the population to the securities market, has a negative impact on formation of the tax potential of the securities market. Degree of the negative impact of the said factors grows in the event of deterioration of the state of the macro-economic situation and growth of inflation. The legislatory organisational factors are: object, base, rates of taxation of securities trading and the securities market infrastructure. The article proves that low level of infrastructure development could significantly reduce the tax potential of the securities market. The proposed approach to the study of factors of formation of the tax potential gives a possibility to mark out, apart from de-shadowing of operations and expansion of the taxation base, one more direction on increase of the tax potential of the securities market, namely – attraction of free money funds of the population. The prospect of further studies is development of methods of assessment of influence of each of the factors upon dynamics of the tax potential of the securities market