Tax gap in the economy: economic essence and causes
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 10, Issue
Abstract
Introduction. To date, the problem of legalization of the proceeds of crime is a challenge for the financial and economic stability of many countries. Current trends of economic development of Ukraine, accompanied by low rates of GDP growth, a significant level of informal employment, inflation processes in the country, demonstrate the need to find new tools to regulate the activities of economic entities and minimize the amount of hidden income and bringing them into the shadows. Purpose. The aim of the research is to study the essence and preconditions of tax gaps in the economy, which due to the substantiation of the existence of the relationship between the level of shadow economy and the size of the tax gap, will help to identify the most priority instruments of state regulation of the processes of accrual and payment of the tax obligations. Results. The article analyzes the place and role of tax payments in the structure of state budget revenues. The existence of a causal link between the indicators of income shadowing and the completeness of fulfillment of tax liabilities is proved. The essence of the tax gap is defined as the difference between the amount of tax payments, which theoretically should be paid to the budget, and the amount of actual revenues. The preconditions for its occurrence are determined. The peculiarities of formation of gross and pure tax gap are investigated. On the basis of a comparative assessment of the level of tax gaps in Ukraine and the EU countries, it was concluded that there is a need to transform the existing state policy in the field of shadowing of the economy and to strengthen control by the state authorities on the completeness and timeliness of tax payments. Conclusion. An analysis of the current trends in the formation of tax gaps indicates the existence of a wide range of channels and schemes for the illegal withdrawal of funds with the involvement of a wide range of participants in these operations, as on the part of counterparties - banks, insurance and investment companies, partners; as well as business entities. Timely identification of all participants in shadow income by reducing the amount of tax liabilities, illegal withdrawal of funds abroad, undervalued tax value of goods, concealing part of financial transactions will improve the quality and efficiency of public financial management, increase the level of economic and social development of the country in the strategic perspective.
Authors and Affiliations
Inna Volodymyrivna Tiutiunyk
Keywords
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