Smagulova D

Smagulova D.S.,Umbetalin N.A.

Al-Farabi Kazakh National University,

LL.M., Senior lecturer Department of Customs, financial and environmental law, the Faculty of Law, Republic of Kazakhstan, Almaty,

smgdana@mail.ru nurs95@bk.ru

Theoretical aspects of tax exemptions and tax preferences

President of Kazakhstan Nursultan Nazarbayev at a meeting on the formation of the draft national budget for 2014-2016 years instructed to continue work on the revision and redistribution of tax benefits, thereby set the task of inventory and optimization of established benefits legislation.

Often in the literature and in practice, along with the concept of "tax breaks" used the term "tax preferences" as synonyms, interchangeable terms. However, you must be able to distinguish between these terms, as they are different implications for naloplatelschikov.

Despite frequent references to the theory and practice of the concepts of "tax relief" and "tax preferences" so far has not developed a single definition of these terms.

Section 2 of the Tax Code of the Republic of Kazakhstan are the essential elements of any tax: the object of taxation, tax base, tax period, tax rate, tax calculation procedure, procedure and terms of payment of the tax. Tax incentives, according to some authors, can be attributed to an optional, optional elements of the tax [1].

Financial and credit dictionary defines the tax credit as "provided by the tax legislation of the exceptional possibility of full or partial exemption from payment of the tax if the object of taxation, as well as other softening the tax burden for the taxpayer," [2]. Despite the fact that this definition gives a fairly accurate description of the tax benefits in accordance with the features laid down by law, ie, defines the external manifestations, economic concepts are not disclosed in full.

A.Zhamalov, in his textbook "Tax Administration. Transfer pricing ", indicates that a tax credit is defined as complete or partial exemption from tax payers in accordance with the law. [3]

S.T.Alibekov, argues that tax incentives play an important role in the system of the taxation elements of any state. Just defining what a tax privileges mean partial or full exemption of individuals and entities from paying taxes, while describing the fact that it set a component of the tax system by the legislation, which provides financial and economic incentives for business activity of taxpayers through tax relief [4] .

SG Ashes [5] did not allow determination of the tax breaks, but singled out three groups of tax benefits: exemption, rebates and tax credits, combining them into one common goal - to reduce the size of the tax liability of the taxpayer.

IN AND. Dimchenko offers the following definition: "Tax benefits - is laid down by current legislation a full or partial exemption from tax or other tax. Such a release may be permanent or temporary, and due to the presence of conditions, confirm that the obligation imposed on the taxpayer ". [6]

AV Perov believes that tax incentives - "is any exception to the general tax rules provided in the manner prescribed by law for certain categories of taxpayers". [7]

EN Evstigneev believes that tax incentives are used to reduce the size of the tax liability of the taxpayer for the deferral or installment payment [8].

LP Pavlov believes that the tax credit - full or partial exemption from tax of the taxpayer in accordance with the current legislation [9].

Thus, despite the variety of definitions of tax credit the views of all the authors agree on one thing - that the tax breaks always mean by a fact that in addition to the general taxation procedure exists and a special order directed that the tax liability of the payer, enforceable, that is. e. payment is reduced or decreases. However, in our opinion, such an understanding of the tax exemptions reduces the economic characteristics of the concept, since the main purpose of the tax benefits is not only a reduction in the tax burden, but at the same time achieving certain tasks. [10]

That is, in the narrow sense of the essence of the tax benefits recognized standards such laws, which lead to a reduction of the tax exemption. In a broader approach tax credits represent any benefit certain categories of taxpayers over others.

The authors identified the key characteristics of tax benefits that distinguish the concept from other elements of the tax:

1. Urgency - tax credit can only be used within a certain time, specified by the legislation or the established authorities.

2. Selectivity - exemptions are granted only to certain categories, and not all taxpayers.

3. Voluntary - the use of the benefits is voluntary and not binding and can not be prescribed without fail.

4. Reducing the tax burden - any kind of benefits implies reducing the tax burden compared to general taxation.

5. Trust character - Allowance is introduced to achieve a specific goal. [10]

In the economic literature there are also certain tax benefits of functions [11]. In particular, allocate compensation and catalytic function. Compensation feature provides for the creation of equal opportunities for the subjects in the presence of unequal external or internal factors. Enabling function is aimed at the development of certain activities by creating favorable conditions for them.

Unfortunately, in the economic literature is rare definition of such concepts as "tax preferences". Therefore, most often between the tax credit and tax preferences equate.

However, preferences (. Lat praeferentis - preference) - these are the advantages, benefits provided by individual States, enterprises, organizations to support certain activities; carried out in the form of tax cuts, rebates of customs duties, exemption from payment of favorable loans. The preferences granted by the State and are targeted. [12]

Thus, comparing the concept of "tax relief" and "tax preferences", we can formulate the following definition of copyrights: Tax credit - this advantage in the possibility of non-payment of all or part of the amount of tax, provided for a limited period of time, a non-binding character.

Tax preferences - is the provision of state benefits to certain categories of taxpayers in the form of reduced tax liability amounts wearing mandatory, under the terms of mutual obligations on the part of the taxpayer.

The purpose of privileges and preferences alone - reducing the total tax burden of the taxpayer. However, the mechanism of action is different.

The use of tax incentives is strictly limited requirement of neutrality of the tax system, asserting the need to minimize the impact of taxes on intra - and inter-sectoral allocation of resources. In accordance with this tax relief is rarely used in developed countries in order to create a favorable regime for certain sectors of the economy, as well as tax incentives, in fact, are a form of subsidy, they provide individual enterprises and all prohibited by law. It is believed that such privileges distort the operation of market mechanisms for the allocation of financial and material resources, complicate the tax system and create unequal competitive conditions for economic entities. However, the government uses tax incentives as a tool for the implementation of priority directions of economic development, such as social services. [4]

There is a significant difference of tax benefits from tax incentives: if the economic entity have any questions on the use of tax preferences, the authorized body shall be obliged to give an explanation on the written application of the taxpayer. Feature tax benefits manifested in the asymmetry of the relationship "tax payer - the tax authorities." The same differences can be attributed to the time of beginning and end. Tax incentives are introduced and canceled at any time., The tax incentives are introduced, together with tax and canceled not earlier than the beginning of the next tax period. As the tax incentives have the possibility of suspending the application of one or several tax periods, the tax preferences such an opportunity is not available.

Summarizing some of the views on the nature and economic substance of the tax exemptions and tax preferences, there are several common features, such as:

- Exemption from payment of tax liabilities;

- A method of reducing the tax burden of the taxpayer;

- Part of the taxation system;

- An exceptional possibility of reducing the tax liability;

- The system of special tax regime.

Using the theoretical foundations for the differentiation of the terms "tax relief" and "tax preferences" to avoid confusion in the interpretation of the law as the taxpayers and public authorities, which will increase the efficiency of the administration of these types of elements of taxation.

Also, when writing this article, we are faced with the lack of a unified and generalized system of indicators to measure the effectiveness of tax incentives, fixed at the legislative level, complicates the use of tax incentives as a tool of the tax system, conducting monitoring and subsequent decisions about their further extension.