Discrete Process of Development and Effective Functioning of the Fiscal System of the Ukraine and EU Countries

  • Larysa O. VDOVENKO Department of Finance, Banking and Insurance, Vinnytsia National Agrarian University, Vinnytsia, Ukraine
  • Svitlana V. SKRYPNYK Department of Accounting and Taxation, Kherson State Agrarian and Economic University, Kherson, Ukraine
  • Polina O. FENENKO Department of Finance, Accounting and Taxation, European University, Kyiv, Ukraine
  • Vita M. HAVRYLIUK Department of Mathematical Disciplines, Informatics and Modeling, Institute of Distance Education, State Agrarian and Engineering University in Podilya, Kamyanets-Podilsky, Ukraine
  • Vitalii V. KOVALOV Department of Finance, Accounting and Entrepreneurship, Kherson State University, Kherson, Ukraine
DOI: https://doi.org/10.14505/jarle.v11.4(50).42

Abstract

The article considers the discrete process of development and effective functioning of the fiscal system of the European Union and Ukraine. A comprehensive methodological approach to the development, sustainability and efficiency of the fiscal system, which provides structural restructuring of the economic system and affects the ‘fiscal maneuver’ of the initial formative component, balances the specific interests of all subjects of redistributive relations. The typology of fiscal systems depending on the approved level of income tax rates, wages and other taxes is studied. The method of estimating the level of tax burden at the macro level is substantiated, which shows the share of GDP that is redistributed through the total amount of tax revenues to the budgets of all levels and extra-budgetary funds. The method of determining the level of tax burden and its impact on the consumer market and production (of goods), as well as the coefficient of elasticity of tax revenues to the State Budget, which embodies the fiscal effect of the impact on the system of tax revenues is shown. The three-stage structure of indicators is determined, which allows to calculate the integrated indicator of the state of the fiscal system and to determine the dynamics of the level of its security by stimulant factors and disincentive factors. The normalized values of stimulus factors and disincentive factors, as well as an integrated indicator of the state of the fiscal system of Ukraine are estimated and determined. The share of direct and indirect taxes in the GDP, as well as the structure of tax payments in the revenues of state budgets of EU member states are analyzed. A modification of the taxonomic indicator of indicative development of the fiscal system (indirect tax harmonization index) has been developed, which characterizes the level and dynamics, as well as changes in the directions and scales of consumption taxation in EU member states and Ukraine under conditions of functioning in a single economic space with a certain degree of harmonization of the sphere of indirect taxes.

References

[1] Andrushchenko, V.A., and Liashenko, V.I. 2005. Economic and non-economic aspects of taxation. Finance of Ukraine1: 36-43.
[2] Aranchii, V.I., and Mysnyk, T.H. 2013. Tax burden and methodological bases of its measurement. Scientific Works of Poltava State Agrarian Academy, Series ‘Economic Sciences’ 2(7):21-27.
[3] Baunsgaard,T., and Keen, M. 2019. Tax revenue and (or?) trade liberalization. IMF Working Paper 5(112): 1-31. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=887981.
[4] Bohatyrova,Ye.M. 2016. Tax reforms in Ukraine: effectiveness and strategic guidelines. Efficiency of Public Administration 4: 322-328.
[5] Boiarchuk, D. 2012. Interesting facts about VAT. Project ‘Popular economy: the price of the state’. In Open Society Foundations. http://case-ukraine.com.ua.
[6] Brooks, Ch., Godfrey, Ch., Hillenbrand, C., and Money, K.2016. Do investors care about corporate taxes? Journal of Corporate Finance 38: 218-248. doi:10.1016/j.jcorpfin.2016.01.013.
[7] Cherkashyn, V. 2017. Profitable business. Does Ukraine need a tax on withdrawn capital. In Resuscitation Package of Reforms. https://rpr.org.ua/news/v-yacheslav-cherkashyn-prybutkova-sprava-chy-potriben-ukrajini-podatok-na-vyvedenyj-kapital.
[8] Creedy, J., and Gemmell, N. 2009. Corporation tax revenue growth in the UK: a microsimulation analysis. Economic Modelling 26(3): 614-625. doi:10.1016/j.econmod.2009.01.008.
[9] Dropa,Ya., and Chaban, I. 2009. Tax burden and its impact on the economy of Ukraine. Formation of Market Economy in Ukraine 19: 213-218.
[10] Dubynetska, P.P. 2015. Tax regulation in the management system of the national economy. Finance of Ukraine 3: 7-26.
[11] Hostieva, O.Iu. 2016. Real estate tax: scientific tendencies and innovations. Economics and Law, Series ‘Right’ 1: 79-83.
[12] Hurnak, O.V. 2010. Formation of the concept of the evolutionary model of development of the tax system. Economic Bulletin of the National Mining University 3: 4-9.
[13] Ishchenko, V.V. 2012. Tax component of the financial security of the state. Bulletin of Transport Economics and Industry 37: 35-40.
[14] Ivanov, B.B., and Berezhna, Yu.V. 2010. Tax security: the essence and conditions of provision. Development Economic 2(54): 9-11.
[15] Khlivnyi, V.K., Tymchenko, O.M., Sybirianska, Yu.V., and Pyslytsia, A.V. 2014. The Tax system. KNEU.
[16] Kriuchkova, N.M. 2016. Forecasting of fiscal efficiency in the conditions of uncertainty of economic development. Bulletin of Odessa National University, Series ’Economy’ 7-2(49): 13-18.
[17] Krysovatyi, A.I., Melnyk, V.M., and Koshchuk, T.V. 2014. Tax transformations in the EU and tax policy of Ukraine in the context of European integration. TNEU.
[18] Lutsenko, I.S. 2013. Methodical approach to assessing the level of tax security of the state. Scientific Bulletin of Kherson State University 2(41): 118-126.
[19] Melnyk, V.M. 2014. Tax reforms in the conditions of acute deficit of fiscal resources: experience of EU countries and Ukrainian realities. Economy of Ukraine6:37-56.
[20] Methodical recommendations for calculating the level of economic security of Ukraine. 2013. Ministry of Economic Development and Trade of Ukraine.http://document.ua/pro-zatverdzhennja-metodichnih-rekomendacii-shodo-rozrahunku-doc168080.html.
[21] Mitra, Sh. 2017. To tax or not to tax? When does it matter for informality? Economic Modelling 64: 117-127. DOI: 10.1016/j.econmod.2017.02.024.
[22] Oparin,V.M., Fedosov, V.M., and Yukhymenko, P.I. 2015. Modern Ukrainian scientific school of public finance. Finance of Ukraine 11: 56-87.
[23] Petrenko, L.M. 2012. Tax security as a component of financial security of the state. Modeling and Information Systems in Economics 86: 89-98.
[24] Podik, I.I. 2017. Assessment of the current state of tax security of Ukraine. Economy and State 4: 46-51.
[25] Poltorak, A.S., and Holovko, M.Y. 2017. International trends in tax transformations in terms of fiscal decentralization. Economics and Management 2(74):90-99.
[26] Ramіrez, J., Mauricio, D., Yadira, B., and Juan, G.2017. Property tax revenues and multidimensional poverty reduction in Colombia: a spatial approach. World Development 94: 406-421. DOI: org/10.1016/j.worlddev.2017.02.005.
[27] Shabaikovych, V.A., and Perepichka, Ye.V.2016. Reforming the tax system according to the new economic strategy. Bulletin of the National University ‘Lviv Polytechnic’, Series’Problems of Economics and Management’ 847: 183-192.
[28] Shazmin, S., Sipan, I., and Sapri, M.2016. Property tax assessment incentives for green building: a review. Renewable and Sustainable Energy Reviews 60: 536-548. DOI:10.1016/j.rser.2016.01.081.
[29] Sokolovska, A.M. 2012. Formation of tax policy in conditions of uncertainty. Finance of Ukraine 11:44-51.
[30] Suchyk, T., and Kravchuk, A.2016. Exit capital tax – the alternative to existing corporatize profit tax. The Ukrainian Journal of Business Law 11: 24-25.
[31] Taptunova,I. 2016. Transformation of corporate income tax into tax on withdrawn capital. European Information and Research Center.
[32] Taxation Trends in the European Union. 2019. https://ec.europa.eu/taxation_customs/sites/taxation/files/taxation_trends_report_2019.pdf.
[33] Tsyhaniuk, Yu. 2016. Withdrawn capital tax and income tax: what is at stake ‘at the top’. In Accountant and Law. https://bz.ligazakon.ua/ua/magazine_article/BZ009509.
[34] Tsymbaliuk, I.O., and Kendiukhova, O.V. 2013.Tax security in the system of financial security of the state. Strategic management of national economic development. DVNZ ‘DonNT’.
[35] Tymoshenko, A.O. 2017. Analysis of foreign experience in reforming tax systems in the context of fiscal decentralization. Bulletin of Agrarian Science of the Black Sea Region 3(95):64-72.
[36] Vykliuk, M.I., and Herasyk, B.B. 2013. Tax security: the dualism of the economic nature of the interpretation of the content of the main characteristics. Innovative Economy 5: 242-246.
[37] Zaharova, E.A. 2011. Tax security. Criteria for its assessment. Bulletin of the Belarusian State Economic University 6: 63-68.
Published
2020-06-15
How to Cite
VDOVENKO, Larysa O. et al. Discrete Process of Development and Effective Functioning of the Fiscal System of the Ukraine and EU Countries. Journal of Advanced Research in Law and Economics, [S.l.], v. 11, n. 4, p. 1446 – 1461, june 2020. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/5350>. Date accessed: 21 dec. 2024. doi: https://doi.org/10.14505/jarle.v11.4(50).42.
Citation Formats
Issue
Vol 11 No 4 (2020): JARLE Volume XI Issue 4(50) Summer 2020
Section
Articles

The Copyright Transfer Form to ASERS Publishing (The Publisher)
This form refers to the manuscript, which an author(s) was accepted for publication and was signed by all the authors.
The undersigned Author(s) of the above-mentioned Paper here transfer any and all copyright-rights in and to The Paper to The Publisher. The Author(s) warrants that The Paper is based on their original work and that the undersigned has the power and authority to make and execute this assignment. It is the author's responsibility to obtain written permission to quote material that has been previously published in any form. The Publisher recognizes the retained rights noted below and grants to the above authors and employers for whom the work performed royalty-free permission to reuse their materials below. Authors may reuse all or portions of the above Paper in other works, excepting the publication of the paper in the same form. Authors may reproduce or authorize others to reproduce the above Paper for the Author's personal use or for internal company use, provided that the source and The Publisher copyright notice are mentioned, that the copies are not used in any way that implies The Publisher endorsement of a product or service of an employer, and that the copies are not offered for sale as such. Authors are permitted to grant third party requests for reprinting, republishing or other types of reuse. The Authors may make limited distribution of all or portions of the above Paper prior to publication if they inform The Publisher of the nature and extent of such limited distribution prior there to. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in The Paper. This agreement becomes null and void if and only if the above paper is not accepted and published by The Publisher, or is with drawn by the author(s) before acceptance by the Publisher.