M. Baranova

Donetsk University of Economics and Law, Ukraine

LEGAL ANALYSIS AND WAYS OF DEVELOPMENT OF TAX SYSTEM OF UKRAINE

One of the main instruments of state influence on economic life is the tax system, which helps to regulate business, to make the crisis less, to provide financial basis for state order and public works, to stimulate the priority ways of economic development, the role of tax authorities increases by way of all these facts. Making better taxes, legislation about their paying and tax mechanism occurs coordination of states and taxpayers interests. In particular, we have to pay attention on future ways of development of tax administration and building of stainless tax system. The start of this big work has been already done by Ukrainian scientists such as Kucheriavenko [1], Pryshva [2], Bandurka [3], Papp [4], Penyakova [5], Novitskiy [6] and by several other authors. But there is a necessity of theoretical basis for the next stage of tax reform, which is indicating the relevance of the chosen research. Today a tax system was created in Ukraine that is similar to the tax systems of developed European countries in its composition and structure. At the same time, the tax administration of Ukraine is slightly different from the EU: 1) In the European Union priority of the tax authorities is to work with non-payers: people, who were registered in the tax authorities and who stopped to give tax reports and pay taxes because of any reason,; people who do business, receive incomes from it and wasn’t registered in the tax authorities and pay no taxes. In Ukraine, such persons are not sufficiently observed by state. The work of the tax authorities of Ukraine is directed to taxpayers, who are consciously registered in the prescribed manner. 2) Many countries follow the next principle of taxpayer accounting: the taxpayer is registered in the tax service (general), not in a separate tax authorities of the executive level. Experience of more than 20 countries-members of Organization for Economic Co-operation and Development (OECD) shows a significant advantage of this approach to accounting for both taxpayers and tax authorities. In particular, taxpayers can apply, make tax reporting, perform reconciliation, and get a variety of documents and consultations on any tax authority of the executive level or using phone or other electronic devices (including online service). Tax authority gets more opportunities to control compliance of tax legislation by taxpayers and to improve the quality of their service. In Ukraine, the control of the taxpayers and tax services is exclusively provided by the tax authority at the place of registration. 3) Foreign countries have general state information resource about citizens, non-residents, taxpayers, tax facilities with access to it only for representatives of public authorities, prosecutors, local government and law enforcement. Ukraine has just set up technical abilities to provide access for the tax authorities in measure of their powers to the information, which is available in the databases of other government agencies. 4) Determination of taxpayers, who are risky during the procedure of their registration as taxpayers of Tax for additional cost and it is obligatory rule of law for many European countries. In Ireland, for example, taxpayers are selectively attended by representatives of tax authorities and the results of visit are compared with registration information, and workers of tax authorities in Great Britain and Lithuania have the authority to obtain additional information from the taxpayer, if the application form contains uncertain information for registration taxpayers of Tax for additional cost. In Sweden the information from third persons is used. Current legislation of Ukraine doesn’t imply audit of registration of economic subjects, in particular, the relevant provisions haven’t been adopted and they have been proposed to make the new Tax Code. So, the number of inspections of amount of Tax for additional cost is still great, which was claimed by taxpayers for refund. 5) In many EU countries there is only one form of tax reporting for particular tax. Tax reporting forms are fairly simple and understandable. Instructions for completing the forms are written in such way, that it isn’t possible to interpret them in different ways. For example, in Netherlands and Belgium declaration for Tax for additional cost consists of 1 page [7]. Tax Code of Ukraine establishes 23 taxes and fees (18 general ,for state budget, and 5 local. Number of tax reporting forms is much greater than the total amount of taxes and duties, because there is a practice in Ukraine, when several tax reporting forms for administration of one tax and additions to them are approved. There are no instructions for their completion for most forms. So comparing Ukraine with other countries, we can make a conclusion, that efficiency of tax administration in Ukraine is low [8, p.16]. Enumerating all the differences between the tax administration system in Ukraine and the countries-members of EU, we can make some recommendations for improving the current tax system. 1. To put efforts on creation of tax awareness of citizens: - organizing trainings for taxpayers and tax officials, the main topic of which will be connected with use of tax laws; - providing personal informing of taxpayers (entities) about changes in tax laws; - formation of tax culture of population and taxpayers; - clarification of legal acts about taxes, fees, obligatory payments and tax-free incomes, which are paid to budgets and state trust funds [9, p. 246]. 2. Introduction of a united account for paying taxes, which will greatly improve the relationships with tax authority, simplify bureaucratic procedures and costs, connected with the payment of taxes [10]. 3. Providing stable legal basis for business and public could adapt to it. This aim can be achieved in the way of implementation of the Law «About moratorium on amendments to the adopted laws», which means prohibition on amendments to the laws in taxation of 3-5 years [11]. 4. Making shorter and simpler report forms, which taxpayers must give to the tax authorities.  5. Speeding-up the pace of implementation of electronic reporting and measures of modernizing functions of tax authorities. Today an electronic information system «Electronic Government» is implemented for realization of these plans in Ukraine, which has its aim is to develop the democracy in order to achieve European standards of providing electronic public services, openness and clearness of government for citizens, public institutions and business.

Literature

1. Kucheriavenko Tax Law of Ukraine: text book / Kucheriavenko. – Kharkiv: Pravo, 2012. - 528 p. 2. Pryshva Tax law: book for study / Pryshva. – Kyiv.: Inter Yurinkom, 2010. - 368 p. 3. Bandurka Tax Law: book for study / Bandurka, Ponikarov, Popova. – Kyiv: Center of educational l-re, 2012. - 312 p. 4. Papp Conceptual approaches to the formation and development of the tax system of Ukraine / Papp // regionalalna ekonomika. - 2009. - № 1. - P. 225-232. 5. Penyakova Modernization of the tax system / Penyakova // Actual problemsof economics. – 2011. - № 7. - P. 269-273. 6. Novitskiy Tax regulation in the system of instruments of social and economics development: methodological issues / Novitskiy // Finance of Ukraine. - 2010. - № 10. - P. 60-73. 7. International experience: tax administration in Europe and Ukraine [electronic resource]. – Mode of access: http://www.sta.gov.ua/control/uk/publish/article?art_id=351399&cat_id=310882&showHidden=1. 8. Voronkova International experience in valuing of effective of tax administration and its significance for Ukraine / Voronkova // Science and Economics. - 2011. - № 3 (23). - P. 12-17. 9. Skoropad Relations between taxpayers and tax authorities / Skoropad, Huk // Scientific Bulletin of Ukraine. - 2010. – Issue . 20.8. - P. 244-246 .

10. Changes in tax administration processes according to the Tax Code of Ukraine and the project «Modernization of the State Tax Service of Ukraine – 1» [electronic resource]. - Mode of access: http://minrd.gov.ua/modernizatsiya-dps-ukraini/povidomlenia_/2011-povidomlenia-modernizatsia/59344.html 11. Yanyev Ways of improving tax administration in Ukraine / Yanyev // Collection of scientific of students works of the Odessa National University of Economics , Department of Finance . - 2012. - Issui. 1 - P. 28.