CHARACTERISTICS OF TAX SECURITY AND ITS ROLE IN PUBLIC ADMINISTRATION

Abstract

The article examines the concept of tax security, which is a component of economic security of the state. The balance mechanism of state regulation of the tax burden, which should be optimal, has been investigated, since with low taxes the budget revenues are reduced and, as the tax burden increases, business entities begin to find ways to reduce costs. These include shadow activity, the removal of major assets in offshore areas, and the like.

The factors that evoke tax evasion or tax avoidance are discussed, as well as the particularities of these two concepts and their associated circumstances.

International experience and some features of taxation of a number of leading countries in the world are studies. Measures to improve the investment climate are analyzed.

Also, the article found that tax security is a state of security of the system of budget revenues, which play the most important role in filling the state treasury.

The dynamics of the tax burden in Ukraine and the level of the shadow economy are compared. The data and methodology for calculating the level of the shadow economy in Ukraine were taken from the conclusions of the Ministry of Economic Development, Trade and Agriculture of Ukraine. Ukraine’s business taxation figures are taken from World Bank statistics.

Also, the article suggests recommendations on the need to create an effective mechanism for state regulation of tax security, starting from building up the conception and understanding basic requirements for optimization of management decisions, to proposals for information and analytical support. The first step in such activities should be optimization of management decisions that is the subject for further research and scientific investigation.