COMBAT TAX AVOIDANCE THROUGH THE MODERNIZATION OF THE SIMPLIFIED TAXATION SYSTEM IN UKRAINE
DOI:
https://doi.org/10.32689/2618-0065-2024-2(16)-30-44Keywords:
public management and administration, public finance, tax regulation, tax evasion, simplified taxation system, single tax, martial law, reconstruction of Ukraine.Abstract
Abstract. The article is devoted to the determination of prospects for combating tax evasion through the justification of ways to improve the simplified taxation system for small and medium-sized businesses. It has been proven that one of the main methods of tax evasion and minimization in Ukraine is the abuse of a simplified system. The system, which was introduced with the aim of bringing business out of the «shadows», supporting micro-businesses and combating smuggling, in its current form has turned into a threat to the financial and economic security of the state. The global practice of introducing special tax regimes for small (micro) and medium-sized businesses is analyzed. Such basic preferential concepts as a simplified regime on the general taxation system and special taxation regimes are considered. International practice provides for various effective mechanisms of simplified taxation to support micro-businesses. It is substantiated that in Ukraine, as a result of the negative influence of politicians, populist initiatives, unscrupulous (corrupt) lobbying by certain non-profit groups, and paternalistic attitudes, systemic legislative gaps were formed, which enabled tax evasion. The main paradigms of leveling the possibilities of abuse of the simplified taxation system are singled out, including: the paradigm of the quality of service provision, the paradigm of coercion of law enforcement, and the paradigm of trust. The substantive characteristics of each of the paradigms, as well as the corresponding methods and tools of public management, are given. Based on the experience of the developed democracies of the world, it is proposed to implement the concept of electronic register mechanisms for effective countermeasures against the abuse of simplified taxation systems. Fiscal accounting systems are expected to be implemented, which are designed to reduce the level of tax payers’ evasion of payment registration.
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