Management priorities of tax reform in Ukraine: implementation of international experience
-
Author(s)Yuriy TuryanskyyLink to ORCID Index: https://orcid.org/0000-0002-4892-0653
,
Irena SvydrukLink to ORCID Index: https://orcid.org/0000-0002-3099-6449
,
Orystlava SydorchukLink to ORCID Index: https://orcid.org/0000-0002-7078-1557
,
Nataliіa MitsenkoLink to ORCID Index: https://orcid.org/0000-0002-0337-8346
,
Olga KlepanchukLink to ORCID Index: https://orcid.org/0000-0001-7764-614X
-
DOIhttp://dx.doi.org/10.21511/imfi.17(2).2020.25
-
Article InfoVolume 17 2020, Issue #2, pp. 320-333
- Cited by
- 824 Views
-
134 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The paper proves that the Ukrainian economy’s systematic structural crises stipulated the necessity of choosing the effective forms of tax mechanism for its regulation. Systemic and institutional methods have been used to study the peculiarities of Ukrainian tax regulation. The methods of coefficient and relative values have been used to assess certain parameters of the tax burden. The dynamics of statistical data have been studied by the method of trend analysis. To determine the impact of the current tax system of Ukraine on economic growth, the authors tested several hypotheses about the dependence of the tax system and: GDP (1), industrial production (2), exports (3), investment dynamics (4), and unemployment rate (5) using econometric analysis with the package-statistical module EViews. The existence of a directly proportional relationship between the growth of tax revenues to the budget of Ukraine and the change of certain macroeconomic indicators is substantiated. It was found that the total tax burden on business in Ukraine reaches 41.5% of corporate profits, which exceeds similar indicators in most European countries. A tax regulation mechanism to stabilize the Ukrainian economy is proposed, in particular: proposals to revise tax rates, implement macroeconomic risk management tools, customs post-audit while providing transparency of tax legislation and its harmonization with the EU Customs Code, digitalization of the service component of tax administration.
- Keywords
-
JEL Classification (Paper profile tab)E62, F38, H21, Н25, H87
-
References33
-
Tables2
-
Figures4
-
- Figure 1. Dynamics of tax revenues in the state and consolidated budgets of Ukraine
- Figure 2. Indirect tax structure in Ukraine in 2020
- Figure 3. Algorithm of tax reform in Ukraine
- Figure 4. Ranking positions of Ukraine on institutional regulation of business activity in 2019–2020
-
- Table 1. Main indicators of economic development of Ukraine in 2014-2019
- Table 2. Dynamics of tax burden formation in Ukraine in 2014–2019
-
- Auray, S., Eyquem, A., & Ma, X. (2017). Competitive tax reforms in a monetary union with endogenous entry and tradability. European Economic Review, 98, 126-143.
- Benczúr, P., Kátay, G., & Kiss, Á. (2018). Assessing the economic and social impact of tax and benefit reforms: A general-equilibrium microsimulation approach applied to Hungary. Economic Modelling, Elsevier, 75, 441-457.
- Bond, E. W., & Gresik, T. A. (2020). Unilateral tax reform: Border adjusted taxes, cash flow taxes, and transfer pricing. Journal of Public Economics, 184, 104160.
- Bosch, N., & de Boer, H.-W. (2019). Income and occupational choice responses of the self-employed to tax rate changes: Heterogeneity across reforms and income. Labour Economics, 58, 1-20.
- Choi, Y., Hirata, H., & Kim, S. H. (2017). Tax reform in Japan: Is it welfare-enhancing? Japan and the World Economy, 42, 12-22.
- Drozdovska, O. S., & Ozerchuk, O. V. (2017). Spivvidnoshennia priamykh ta nepriamykh podatkiv u podatkovii systemi Ukrainy [The ratio of direct and indirect taxes in the tax system of Ukraine]. Investytsii: praktyka ta dosvid – Investment: practice and experience, 10, 44-50. (In Ukrainian).
- Fedoriv, S. (2017). Pryntsyp sotsialnoi spravedlyvosti podatkovoi systemy Ukrainy yak otsinne poniattia [The principle of social justice of the tax system of Ukraine as an evaluation concept]. Finansove pravo – Finance law, 10, 160-165. (In Ukrainian).
- Ilzetzki, E. (2018). Tax reform and the political economy of the tax base. Journal of Public Economics, 164, 197-210.
- Magnani, R., & Piccoli, L. (2019). Universal Basic Income with Flat Tax reform in France. Journal of Policy Modeling, 42(2), 235-249.
- Melnyk, V., & Koshchuk, T. (2012). Suchasna podatkova polityka u krainakh YeS-15 [Current tax policy in the EU-15]. Ekonomika Ukrainy – Economy of Ukraine, 5, 73-85. (In Ukrainian).
- Ministry of Finance of Ukraine. (2019). Public Finance Management Support Programme for Ukraine (EU4PFM).
- Ministry of Finance of Ukraine. (2020a). Makrofinansovi pokaznyky [Macrofinancial indicators]. (In Ukrainian).
- Ministry of Finance of Ukraine. (2020b). Valovyi vnutrishnii produkt (VVP) v Ukraini 2019 [Gross Domestic Product (GDP) in Ukraine 2019]. (In Ukrainian).
- Nohinova, N. M. (2014). Neobkhidnist reformuvannia podatkovoi polityky Ukrainy v umovakh yevrointehratsii [The need for reform of Ukraine’s tax policy in the context of European integration]. Naukovi zapysky Natsionalnoho universytetu “Ostrozka akademiia” (Seriia: Ekonomika) – Scientific notes of the National University “Ostroh Academy” (Series: Economics), 25, 141-145. (In Ukrainian).
- OECD. (2019). BEPS: Inclusive Framework on Base Erosion and Profit Shifting.
- Pakhnenko, O. M., & Semenoh, A. Yu. (2016). Osnovni zasady podatkovoi polityky v krainakh YeS na suchasnomu etapi [The main principles of tax policy in the EU countries at the present stage]. Efektyvna ekonomika – Effective Economy, 12. (In Ukrainian).
- Pronoza, P. V. (2018). Dynamika podatkovoho borhu i napriamy vdoskonalennia podatkovoho administruvannia v Ukraini [Dynamics of tax debt and directions of tax administration improvement in Ukraine]. Ekonomika ta derzhava – Economy and State, 5, 4-9. (In Ukrainian).
- Romaniuta, E. (2017). Monitorynh rivnia podatkovoho navantazhennia v Ukraini ta krainakh YeS [Monitoring the level of tax burden in Ukraine and EU countries]. Svit finansiv – The world of finance, 2(51), 128-138. (In Ukrainian).
- Savchenko, A. M., & Blyshchyk, L. V. (2018). Analiz rivnia podatkovoho navantazhennia v konteksti implementatsii yevropeiskykh standartiv u natsionalnu ekonomiku Ukrainy [Analysis of the level of tax burden in the context of the implementation of European standards in the national economy of Ukraine]. Ekonomichna nauka – Economic Science, 5, 93-96. (In Ukrainian).
- Slatvinska, M. O. (2016). Podatkove stymuliuvannia investytsiinoi diialnosti [Tax stimulation of investment activity]. Ekonomika. Finansy. Pravo – Economy. Finances. Right, 3(1), 4-7. (In Ukrainian).
- State Fiscal Service of Ukraine. (2019). Dynamika podatkovoho borhu [Dynamics of tax debt]. (In Ukrainian).
- State Statitics Service of Ukraine. (2019). Makroekonomichni pokaznyky [Macroeconomic indicators]. (In Ukrainian).
- State Tax Service of Ukraine. (2020). Zahalnoderzhavni podatky [National taxes]. (In Ukrainian).
- State Taxation Administration of the People’s Republic of China. (2019). Tax system.
- The European Commission. (2019). Establishing the work programme relating to the development and deployment of the electronic systems provided for in the Union Customs Code: implementation decision 2019/2151.
- The European Commission. (2016). Union Customs Code.
- The World Bank. (2019). Total tax and contribution rate (% of profit): All Countries and Economies.
- U.S. Government Services and Information. (2019). Tax Law Changes.
- Verkhovna Rada Ukrainy. (2010). Podatkovyi kodeks Ukrainy [Tax Code of Ukraine]. (In Ukrainian).
- Verkhovna Rada Ukrainy. (2020). Proekt Zakonu pro vnesennia zmin do Podatkovoho kodeksu Ukrainy shchodo vdoskonalennia administruvannia podatkiv, usunennia tekhnichnykh ta lohichnykh neuzghodzhenostei u podatkovomu zakonodavstvi [Draft Law on Amendments to the Tax Code of Ukraine on improvement of tax administration, elimination of technical and logical inconsistencies in the tax legislation]. (In Ukrainian).
- World Bank Group. (2020). Doing Business-2020. Ukraine: Reforming to Create Jobs, 2020.
- Zeida, T. H. (2019). On the Corporate Tax Reform: Coordination and Trade-offs. Journal of Macroeconomics, 62, 103156.
- Zou, J., Shen, G., & Gong, Y. (2018). The effect of value-added tax on leverage: Evidence from China’s value-added tax reform. China Economic Review, 54, 135-146.
-
An application of Altman Z-score model to analyze the bankruptcy risk: cases of multidisciplinary enterprises in Vietnam
Investment Management and Financial Innovations Volume 16, 2019 Issue #4 pp. 181-191 Views: 2374 Downloads: 2548 TO CITE АНОТАЦІЯThis study applied Altman Z-score model to assess the bankruptcy risk of a set of multidisciplinary enterprises of various types, mainly small and medium enterprises, with data taken from official financial reports of 180 enterprises in Soc Trang province. The binary logistic regression was employed to assess the impact of non-financial and financial factors on the bankruptcy risk of enterprises. The research findings showed that both the non-financial factors such as business area, types and size of the business, the educational level of managers and executors and other characteristics, and the financial factors (indicators) such as earnings before tax, net profit/equity ratio, earnings before interest and tax/total assets ratio, equity/total debt ratio, affect the bankruptcy risk of enterprises. Predicting the bankruptcy risk and measuring its determinants play an important role not only as an effective managing tool of the business, but also as evidence for policymakers to support the sustainable development of business.
-
Multi-agent modeling and simulation of a stock market
Mohamed Amine Souissi ,
Khalid Bensaid ,
Rachid Ellaia
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.10
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 123-134 Views: 2262 Downloads: 1119 TO CITE АНОТАЦІЯThe stock market represents complex systems where multiple agents interact. The complexity of the environment in the financial markets in general has encouraged the use of modeling by multi-agent platforms and particularly in the case of the stock market.
In this paper, an agent-based simulation model is proposed to study the behavior of the volume of market transactions. The model is based on the case of a single asset and three types of investor agents. Each investor can be a zero intelligent trader, fundamentalist trader or traders using historical information in the decision making process. The goal of the study is to simulate the behavior of a stock market according to the different considered endogenous and exogenous variables. -
Regulating Big Data effects in the European insurance market
Donatella Porrini
doi: http://dx.doi.org/10.21511/ins.08(1).2017.01
Insurance Markets and Companies Volume 8, 2017 Issue #1 pp. 6-15 Views: 2165 Downloads: 379 TO CITE АНОТАЦІЯThe article analyzes the regulatory framework in the insurance market in connection with the advent of Big Data, such as information collected from different sources that can be manipulated by new technologies. The use of Big Data offers significant opportunities to the insurance companies in terms of digitization of the distribution channels and greater knowledge of the customers, which is instrumental to a more effective identification of the individual’s risk profile, as well as improvement of the competitiveness. However, regulatory measures are needed for a proper use of Big Data in terms of respect of the individual privacy, potential discrimination and constraint on competition.
