Substantiation of the stages of implementation of the tax expenditure concept

Abstract

One of the key problems of the modern taxation system in Ukraine is the unsystematic provision of tax benefits and the lack of real tools for monitoring their use, which determines the relevance of the study. The purpose of the study was the theoretical substantiation of the stages of implementation of the tax costs concept to reduce budget losses from the provision of tax benefits. The following scientific methods of the research were used: analysis, synthesis, induction, deduction, analogy, comparative and statistical analysis, logical generalisation. The work establishes the need to implement the concept of tax costs, which involves the development and implementation of the Tax Policy Strategy, in order to regulate the conceptual foundations of tax policy; inventory of current tax benefits and revision of the list of benefit recipients (control of income and expenses of individuals); preparation of changes to tax legislation with mandatory financial and economic substantiation (ensuring compliance with the principle of stability of legislation); standardisation of the monitoring system of the tax expenditure effectiveness (calculation of the indicators of tax expenditures effectiveness); regulation of the reporting procedure for tax expenditures by taxpayers by unifying the reporting form; standardisation of the procedure for drawing up the Report on tax expenditures by executive authorities and taking into account its results in the budget and tax policy; substantiation the grounds for making changes to the list of tax expenditures. The practical significance of the obtained results lies in the substantiation of the sequence of stages of the implementation of the tax expenditures concept in order to reduce the loss of budget revenues and its deficit. This concept should contribute to the transparency of the use of budget funds and should provide a reasonable approach to the composition of tax benefits that will be included in the list of tax expenditures for each tax payment.