Influence of tax policy of the state and its regions is vital for country’s economy; it is the major source of allocation of expenditure obligations of tax capacity on the sub-federal level. The purpose of this research is to estimate the predictive tax capacity of regions (TCR) and to create a comparative evaluation of regions on the basis of criteria, which are influencing the tax capacity using different methods of evaluation: multiple criteria decision-making (MCDM) and econometric methods. Criteria, which are having the greatest influence on the TCR, were identified on the basis of empirical data both using regression analysis and expert estimates. The objective, subjective, and cumulative weights have been calculated, the degree of concordance of expert opinions was gauged. The comparative evaluation of the TCR in four regions of Russia in 2000–2012 was performed on the basis of MCDM methods.

This paper investigates tax competitiveness among the EU member countries. The tax competition of countries causes both positive and negative effects on macroeconomic processes such as the effectiveness of government spending, the rationality of supply of externalities, and the length and amplitudes of business cycles. A considerable reduction of corporate tax in the EU is related to increased tax competition after new members entered the EU. Multiple criteria methods were chosen for the quantitative evaluation of EU countries from different regions of the EU. Criteria of evaluation were chosen and structured into a hierarchy. The convergence process of the new members of the EU is reinforced with the increasing tax competitiveness of such countries. Results of the multiple criteria evaluation revealed both the factors that increased the tax competitiveness of new members of the EU, and outlined the factors that hampered such competition.

We demonstrate that the dynamics of tax competitiveness in the EU has gained a new higher level. The shift in the tax competition can be noted after new countries have joined the EU. Both positive and negative effects of tax competitiveness are discussed in the paper and the question of trade-off between the strong tax competitiveness of a country and magnitude of its tax revenue is raised. Evaluation of chosen countries using multiple criteria decision aid methods (MCDA) shed more light on the opposition of two groups of countries, the old and new members of the EU, provided more details on the both the present state and dynamics of tax competitiveness in the. The evaluation methodology can be successfully used for monitoring the current state of tax competitiveness of each member country. Prominence of the multiple criteria evaluation TOPSIS method of MCDA evaluation is described. Keywords: Competitiveness of countries, tax system, tax competition, tax revenues, multiple criteria evaluation, TOPSIS.

The subject of the research is the condition of cross-country tax competition and its influence on the tax system compatibility. The urgency of the research is determined by the prospects of tax government risks mitigation tools introduction in response to the necessity to reduce budget deficit on the whole and to the increasing risks of competitiveness lowering as a result of growing tax bases mobility in particular. The purpose of the work is to assess the tax competition influence on competitiveness of national tax systems on the basis of cross-countries tax competition experience in the European Union. The content and essence of tax competition are revealed. It is justified that risk of tax system competitiveness reduction is closely connected with the process of tax competition. Cross-countries tax competition is illustrated with the experience of the EU member countries. The statistical data confirming the trend to reduce tax rates in the EU countries are given. Factors of national systems competitiveness are defined. They are the level of tax burden on citizens’ income and business revenue, the amount of taxes and dues, period of time provided to prepare tax records and paying taxes, rating Doing Business, average annual economy growth rate, cost of labor and level of corruption. On the basis of the multicriterion methods SAW and PROMETHEE II a technique to determine tax competitiveness is presented.