System formation in taxation: reasons and factors influencing the transformation and changes in the tax base

The European Proceedings of Social and Behavioural Sciences

2022

Potential as a category is commonly addressed within two levels -attained (real) and advanced (perspective). Resources and capacity that today are available to economic entities highlight a level attained. They are a real component of economic potential. Economic potential is not only a stock of available resources, but also a current or potential ability to make effective use of resources available. In order to identify the period when tax potential was first calculated, it is necessary to trace the development of inter-governmental relations as such. Different economists provide different definitions of the term "tax potential". Differences in definitions are due to the fact that different authors have different goals and objectives, thereby dealing with different aspects of the category. Tax potential plays a crucial role in improving inter-governmental relations, as well as in determining the procedure for granting transfers. A considerable value of this category is that authorities have an incentive to increase their own revenue base. Thus, there are some institutional views on the development of tax policy including fiscal, functionally stabilizing, investment. The functionally stabilizing view is currently essential for the Russian tax policy, whereas regional tax policies pay special attention to the features of regional tax legislation, tax planning in the region, as well as the system of tax administration. Therefore, with a prevailing type of tax policy to be applied in a particular subject at a certain moment, one can identify trends in the implementation of tax potential.

Section: Resultsmentioning

confidence: 99%

Scientific Views On The Essence And Content Of Local Potential

The European Proceedings of Social and Behavioural Sciences

2022

“…Transforming the system of tax incentives for investment and innovation requires streamlining applicable tax incentives and further development of technology parks as a systemic tool for boosting innovations based on global best practices (Basnukaev, 2021).…”

Section: Discussionmentioning

confidence: 99%

Taxes In State Regulation System

The European Proceedings of Social and Behavioural Sciences

2022

The state molds an economic policy, setting the tone for development and determining strategic and tactical measures to achieve a goal pursued. Thus, tax policy and its practical implementation -the tax system -have a clear desire to solve certain problems. Another impact they have on economic growth is related to a social dimension of taxes as a source of financing public goods. Since the market cannot provide a supply of public goods, or can but at higher costs than the state, empowering it to provide these benefits is viewed as a factor that contributes to a more efficient use of limited resources. Nevertheless, by directing tax revenues to produce public goods, the state is likely to augment distortions caused by taxation, those resulting from its unwarranted interference in the production and distribution of private goods or excessive state participation in the production and supply of mixed (quasi-public) goods. The deformations caused by irrational uses of tax revenues may result in a budget deficit, and in the next fiscal year, the level of taxation will exceed the critical limit (marginal rate), with inevitable negative implications for the economy. As long as taxation does not spill over the marginal norm, it is difficult to make the connection with economic upturn. This is one of the reasons why numerous empirical studies have not yet provided enough evidence of this connection. Thus, any level of taxes that does not exceed the marginal limit, provided they are used effectively and efficiently, can facilitate economic upturn.

“…The tax potential is a macroeconomic category, on which the content and quality of public goods depend. In this regard, it is important to assess tax potential and explore its impacts (Basnukaev, 2021).…”

Section: Introductionmentioning

confidence: 99%

Tax Capacity Assessment: Approaches And Methods

The European Proceedings of Social and Behavioural Sciences

2022

Tax potential of a region is a principal link in budgeting, as it governs financial distributions at the federal level and performs a stimulating function in the tax system both at the level of constituent entities of the Russian Federation and at the municipal level. Local tax potential is built through different impacts and needs to be assessed for solving various research and applied tasks. Modern scientific literature offers various methods for assessing the tax potential of a constituent entity of the Russian Federation. The entire set of existing tools can be divided into direct and indirect. Direct methods assess and forecast variations in tax revenues, while indirect methods provide a comprehensive analysis of the functioning of the economic infrastructure, the number of local labor force and resource potential. Each of the methods for assessing local tax potential has certain positive and negative characteristics. Once jointly applied, various methods ensure efficient forecasting and planning of tax revenues in the constituent entities of the Russian Federation. Strengthening local tax potential requires support in the scientific, technical and innovative fields. The methods studied increase local tax potentials and accelerate their socio-economic development. Thus, the paper suggests that an overall consideration of all of the above impacts helps to shape local tax potential. The scope of impacts on tax potentials directly depends on economic status of a region.