Harmonization of tax relations
After studying the sixth chapter, the student will:
- the economic essence of tax harmonization;
- the main directions of harmonization of tax relations;
- the main tools used to harmonize tax relations;
be able to
- to distinguish between the main directions of tax harmonization; own
- the scientific theory of harmonization of the construction of tax systems.
Basic directions of harmonization of tax relations
Harmonization of tax relations is the construction of a national system of tax relations that ensures the establishment of a long-term and stable balance of interests of the state, taxpayers and other states.
Four types of harmonization directions should be distinguished:
1) observance of the necessary relations between the fiscal interests of the state and the amount of tax burden on economic entities;
2) establishment of strict parity of the rights and obligations of state bodies exercising control and taxpayers;
3) a justified delineation of rights to establish and introduce taxes between all levels of power;
4) the formation of appropriate provisions for the intercountry unification of the taxation system.In essence, harmonization in the field of taxation is primarily intended to ensure the creation of conditions for non-conflict and comfortable relations in the process of taxation.
The main directions of harmonization of tax relations are shown schematically in Fig. 6.1.
Fig. 6.1 . The main directions of harmonization of tax relations
Let's consider in more detail these directions.
Harmonization of the construction of the tax systemHarmonization of the construction of the tax system means the creation of an optimal national tax system that, while providing financial resources for the state's needs, should not reduce the taxpayer's incentives to engage in entrepreneurial activities, while at the same time obliging him to constantly search for ways to improve the efficiency of management.
In order to establish harmonization in this direction, the tax policy of the state is used, which for the long term should orient the tax system on the optimal tax burden. In carrying out this policy, such important principles of taxation as the principle of equality and fairness, the principle of universality and the principle of neutrality should be used.
It is these principles that are the basis for ensuring long-term tax equilibrium, i.e. achieving a stable balance between the fiscal interests of the state, on the one hand, and the optimal value of the tax burden on business entities on the other.
At the same time, the fiscal interests of the state should be ensured not through unjustified imposition of a tax burden on economic entities, but mainly by creating the necessary conditions for the growth of production and the expansion of the tax base on this basis.Undoubtedly, a harmoniously constructed system of taxation allows to ensure the dynamic development of the national economy as a whole, an increase in the tax revenues of budgets of all levels and state extra-budgetary funds on the basis of an economically stimulated expansion of the tax base. In this case, as a rule, the principle of "low rates - wide coverage" is used, the essence of which is to expand the tax base by eliminating the majority of tax benefits and establishing the minimum possible tax rates. As a rule, a preferential tax regime for some taxpayers means additional fiscal pressure on other business entities. At the same time, the tax base as a whole is narrowing. As a result, an effective tax system, on the one hand, implements a certain average necessary tax redistribution of income, and on the other hand - establishes a really acceptable tax burden on taxpayers. At the same time, it is especially important that the tax burden on the economy as a whole and on each taxpayer separately be assessed realistically. Indeed, the actual magnitude of the tax burden depends on the role of the state in solving social problems, the extent to which it participates in specific social expenditures of the population - payment of medical, educational, communal and other services, as well as the actual scale of implementation of state programs for the social protection of citizens. Harmonization of the construction of the tax systems of individual countries, in particular Sweden, is implemented in such a way that taxpayers give 40% or more of their incomes to the state treasury, but this does not suppress their incentives to develop production. Such harmonization is explained by the fact that in these countries the state centrally, at the expense of tax revenues to the treasury, solves many problems of a social nature that in most other countries all taxpayers are forced to solve at the expense of their incomes remaining after payment of all due taxes. At the same time, a harmoniously constructed tax system is also perfectly acceptable in the case when the state, while easing the tax burden on taxpayers, simultaneously reduces its expenditures, primarily to social protection and social support programs for the most vulnerable groups of the population.
In addition, a harmonious and efficient tax system should be aimed at eliminating the heterogeneity of economic development of individual industries and types of economic activities in terms of the revenues they receive. This is due to the fact that an important goal of harmonization of the tax system is also a comprehensive ensuring of uniformity in the development of priority areas of production separately and the stability of the entire national economy as a whole.
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