Taxable Capacity of Business Entity and Tax Passports as an Instrument for its identification and Assessment
Loading...
Date
2020
Authors
Shalimova, N.
Kuzmenko, H.
Шалімова, Н. С.
Кузьменко, Г. І.
Шалимова, Н. С.
Кузьменко, Г. И.
Journal Title
Journal ISSN
Volume Title
Publisher
Southern Caucasus Scientific Journals
Abstract
A precondition for a successful budgetary and fiscal policy is to increase the revenue of the budget system by expanding tax capacity of the economy which implies the need to stimulate the growth of tax capacity and create a reliable information base support for its assessment. However there are significant problems related to a timely strategic and, especially, operational decisions to obtain information of the required amount and quality. The concept of determining the economic essence of the notion of “taxable capacity of a business entity” and its elements is proposed, within which the classification criteria (optimal and actual taxable capacity), the structure (resource and structural approach), functions (resource-saving, regulatory, informational and analytical), the place and role in the system of tax administration are distinguished. Using of this concept ensure the correct identification of the entity from the standpoint of its capacities to provide tax obligations to the state were outlined. The principles of forming tax passports of different business entities are laid out. The priority descriptions of key aspects of activity of different entities which allow estimating their tax potential and increasing tax incomes to the budgets have been highlighted. Taking into account the significant analytical orientation of tax passports it is proposed to include the following key indicators describing the entity, grouped into three groups: group I includes indicators that characterize the financial status of the entity; group II includes indicators that characterize the tax burden of the enterprise; group III includes indicators that characterize the tax culture of the subject and the effectiveness of the state financial control bodies, in the first place, the tax authorities. Qualitative compilation of tax passports with application of other documents on tax administration will help to determine real tax burden of a particular business entity and develop directions for its optimization, conduct rational tax policy, ensure the necessary amount of tax revenues to the state and local budget system.
Description
Keywords
capacity, taxes, taxable capacity, taxable capacity of a business entity, information support, tax passport
Citation
Shalimova, N. Taxable Capacity of Business Entity and Tax Passports as an Instrument for its Identification and Assessment / N. Shalimova, H. Kuzmenko // Black Sea. Scientific Journal of Academic Research. - June-Sept. 2020. - Vol. 55. - Iss. 04. - P. 19-28.