"Economics". 3. Financial relationships.
Rud’ O.V
Cherkasy State Technological University, Ukraine
Tax debt’s influence the fiscal efficiency of direct
taxes
Being not a
progressive force of economic development tax debts are harmful for state’s
interests, they slower the processes of financial stabilization and economic
progress. These things happen because of narrowing the financial base of the
state and as a reason socio-economic development programs are being reduced,
what can destabilize the socio-economic situation in state and cause serious
problems for economy safety.
In accordance
with Article 14.1.175. of the tax code of Ukraine, tax debt is a concerted
amount of monetary obligation (containing penalties if they are present) that
has not been paid the due periods by a taxpayer; tax debt is also a fine
accrued to the amount of monetary obligation [1]. That is, tax debts are conditioned
with the presence of tax obligation and untimely payment for it.
As a
socio-economic fact tax debt should be reviewed in a tight connection with
national safety of the state [2]. The importance of this socio-economic causes
the need of its detailed studying in practice. In Ukraine, the statistics let
us see permanently high amounts of tax debts since economic crisis periods
2008-2009 till nowadays (table 1).
In the structure
of tax debts the debt for corporate income tax takes the largest place among
direct taxes – its deal is 26% average for the period of research; the
indicator of tax debts for other direct taxes is quiet lower: 5,4% for land fee
and 3,2% for personal income tax.
However, when the
amount of the tax debt for personal income is almost constant after 2009-2010
years, the amount of the tax debt for land fee tends to increase. The average
amount of tax debt for corporate income tax in the period of 2010-2013 years
keeps quiet high indicator – 2484,8 mill UAH. Desyatnyuk O.M. says: “The
efficiency of tax debt management problem has got a special meaning because
influences the level of economic safety in state and society’s attitude to tax
system” [4, p.151].
Table
1
Tax
debt and its structure for separate direct taxes for the period of 2003-2013years
|
The indicators |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
The debt tax on personal income, mill UAH |
122,22 |
87,29 |
104 |
115,97 |
114,66 |
195,4 |
354,5 |
547,7 |
618,9 |
567,7 |
551,6 |
|
The share of debt tax for personal income in
the debt structure, % |
0,87 |
0,99 |
1,11 |
1,49 |
1,81 |
2,59 |
3,51 |
3,85 |
7,69 |
6,10 |
5,14 |
|
Debt for corporate income taxes, mill UAH |
4082 |
2409 |
2328 |
2334 |
2123 |
2000 |
2343 |
3864 |
1613 |
1911 |
2551 |
|
The share of debt tax for corporate income
taxes in the debt structure, % |
29,16 |
27,36 |
24,76 |
29,9 |
33,57 |
26,51 |
23,22 |
27,14 |
20,04 |
20,53 |
23,76 |
|
Land fee, mill UAH |
519,5 |
250,43 |
239,5 |
204,82 |
172,95 |
270,1 |
588,6 |
741,7 |
726,8 |
971,2 |
1129,5 |
|
The share of debt for land fee in the debt
structure, % |
3,71 |
2,84 |
2,55 |
2,62 |
2,73 |
3,58 |
5,83 |
5,21 |
9,03 |
10,43 |
10,52 |
|
The tax debt for tax obligations of taxpayers,
mill UAH |
14001 |
8804 |
9402 |
7806 |
6324 |
7546 |
10089 |
14238 |
8047 |
9310 |
10736 |
|
The share of tax debt for tax obligation of
taxpayers, % |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
The source: based on [3]
That is why we
will use a modified index proposed by Sokolovskaya A.M. for rating the fiscal
efficiency of tax benefits to determine the fiscal efficiency of tax debt.
Sokolovskaya A.M. counts this index as correlation of the tax revenue growth
coefficient to growth the amount of tax benefits coefficient (growth budget
loss because of tax preferences coefficient) [5, p.44].
Where Etd – the efficiency of tax
debt management;
Rtrg – the tax revenue growth
coefficient;
Rtbg – the tax debts growth coefficient;
If Etd<1, the tax debt management
is ineffective, if Etd>1, the tax debt management is effective.
The tax revenue
growth coefficient is counted:
where Tr₀ – the amount of tax revenue in base period;
Tr₁ – the amount of tax revenue in current period.
The tax debts
growth coefficient is counted:
where Td₀ − the tax debt in
base period;
Td₁ − the tax debt in
current period [6, ñ. 102- 104].
The table 2 lets
us see the results of the fiscal efficiency of tax debt management in general
and in the context of direct taxes.
Table
2
The
fiscal efficiency of tax debt management in the context of direct taxes in
Ukraine for 2004-2013 years
|
Indicators |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Tax revenues |
||||||||||
|
Rtrg |
1,16 |
1,55 |
1,28 |
1,28 |
1,41 |
0,92 |
1,13 |
1,43 |
1,08 |
0,98 |
|
Rtbg |
0,63 |
1,07 |
0,83 |
0,81 |
1,19 |
1,34 |
1,41 |
0,57 |
1,16 |
1,15 |
|
Etd |
1,85 |
1,45 |
1,54 |
1,58 |
1,18 |
0,69 |
0,80 |
2,53 |
0,93 |
0,85 |
|
Personal income taxes |
||||||||||
|
Rtrg |
0,98 |
1,31 |
1,32 |
1,53 |
1,32 |
0,97 |
1,15 |
1,18 |
1,13 |
1,06 |
|
Rtbg |
0,71 |
1,19 |
1,12 |
0,99 |
1,70 |
1,81 |
1,54 |
1,13 |
0,92 |
0,97 |
|
Etd |
1,37 |
1,10 |
1,18 |
1,54 |
0,77 |
0,53 |
0,74 |
1,04 |
1,23 |
1,09 |
table 2 (continued)
|
Corporate income taxes |
||||||||||
|
Rtrg |
1,22 |
1,45 |
1,12 |
1,31 |
1,39 |
0,69 |
1,22 |
1,37 |
1,01 |
0,99 |
|
Rtbg |
0,59 |
0,97 |
1,00 |
0,91 |
0,94 |
1,17 |
1,65 |
0,42 |
1,19 |
1,33 |
|
Etd |
2,07 |
1,50 |
1,11 |
1,45 |
1,48 |
0,59 |
0,74 |
3,27 |
0,85 |
0,74 |
|
Land fee |
||||||||||
|
Rtrg |
1,13 |
1,19 |
1,15 |
1,25 |
1,72 |
1,25 |
1,14 |
1,12 |
1,18 |
1,02 |
|
Rtbg |
0,48 |
0,96 |
0,86 |
0,84 |
1,56 |
2,18 |
1,26 |
0,98 |
1,34 |
1,16 |
|
Etd |
2,34 |
1,24 |
1,34 |
1,48 |
1,10 |
0,57 |
0,91 |
1,14 |
0,88 |
0,87 |
The source: based on [3]
According to the
table 2 the tax debt management was fiscally effective in the period of
2004-2008 years, the maximum index of the fiscal efficiency of tax debt
management was in 2011 year – 2,53. In the period of 2009-2010and 2012-2013
years the tax debt management was ineffective. The corporate income taxes and
land fee were not fiscally effective in these periods at tax debt management
also. Personal income taxes are characterized to be more fiscally effective
because of features of their administration.
To count the
losses of the fiscal efficiency in direct taxes what arise in case of
ineffective tax debt management we follow the formula [6, p.105]:
where TLd
– the taxes losses in case of ineffective tax debt management
TD –
tax debt.
The results of counts for the losses of
the fiscal efficiency in direct taxes because of ineffective tax debt
management contain in Table 3.
Table
3
The losses of
the fiscal efficiency in direct taxes because of ineffective tax debt
management, mill UAH
|
Indicators |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Tax revenues |
- |
3177,29 |
2869,65 |
- |
640,59 |
1596,58 |
|
Personal income
taxes |
44,10 |
165,11 |
141,05 |
- |
- |
- |
|
Corporate income
taxes |
- |
961,51 |
1003,44 |
- |
278,23 |
666,48 |
|
Land fee |
- |
250,53 |
70,25 |
- |
116,66 |
141,23 |
The source: based on [3]
The table 3 data
let us see that the first losses of the fiscal efficiency appeared because of
ineffective tax debt management in 2008 year for personal income taxes and
accounted 44,1 mill UAH. The largest losses are seen in the period of 2009-2010
years, that is the period of economic crisis. In the year of 2013 we can notice
significant decrease of the taxes fiscal efficiency: the losses because of
ineffective tax debt management increased to 1596,58 mill UAH (twice more than
2012 year), the same situation is for corporate income taxes.
Conclusions. Thereby,
the losses of the fiscal efficiency of tax debt management are typical for
periods of economic instability and cause losses of the fiscal efficiency of
taxes what are, as a rule, higher at budget forming taxes. The largest losses
of the fiscal efficiency are observed in corporate income taxes and land fee
among direct taxes.
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