Corporate legal relations and tax gaps: the theoretical approach
The article analyzes the international practice of using tax gap assessments, particularly in Australia, Canada, the United Kingdom, the United States of America, Sweden and others. It has been found that this indicator is considered as a derivative of the level of tax culture of enterprises, organizations and citizens of the country and is characterized by a low level of tax gap.
It has been established that the main basic component of determining the size of the tax gap in developed countries is the universal income declaration and financial disclosure. It is determined that corporate rights are subject to taxation. The analysis of the Ukrainian legislation is carried out and it is concluded that the current legislation of Ukraine does not meet the modern requirements and the legislation of the EU. Article 15 of the Treaty on European Union stipulates that an important condition for strengthening economic ties between Ukraine and the UE is the approximation of the existing and future legislation of Ukraine to the legislation of the EU. Ukraine will take measures to ensure that its legislation is gradually brought into harmonization with the EU laws. Such legislation also includes legislation governing the recognition, assessment, accounting and taxation of corporate rights.
It is concluded that at the state level it is necessary to implement an effective financial disclosure and auditing system to reduce tax gaps in the corporate rights sector.
2. Conceptual Basis for Financial Reporting: IASB. Standard dated 01.09.2010, IASB. Available at: http://zakon3.rada.gov.ua/laws/show/929_009/page2. (Accessed 05/10/2019).
3. Corporate Law 2016: Record-breaking Reforms (2016). Legal newspaper. No. 45 (543). P. 30-31.
4. Economic Code of Ukraine: Law of Ukraine of January 16, 2003, No. 436-IV. Available at: http://zakon2.rada.gov.ua/laws/show/436-15/page7. (Accessed 05/10/2019).
5. Filho M.M. (2014) Tax Losses and Tax Gaps: Identification Opportunities. Bulletin of the Odessa I.I. Mechnikov National Uni-versity. Volume 19. Issues 5-6. P. 115–120.
6. Gemmell N., Hasseldine J. (2012). The tax gap: a methodological review. Advances in Taxation. Р.203–231.
7. Hamilton S. (2015) Regulatory compliance, cases election and coverage – calculating compliance gaps. Journal of Tax Re-search. Vol. 13. № 2, Р. 616–673.
8. Limited liability and subsidiary companies. Law of Ukraine dated 06.02.2018 № 2275-VIII. Available at: http://www.golos.com.ua/article/300823. (Accessed 05/10/2019).
9. Schwabiy, KI, Zadorozhnya, LA (2018) International practice of estimating the tax gap from personal income tax. Scientific notes of the Ostroh Academy National University. The Economy Series (9 (37)). P. 174-178.
10. Tax administration 2017: Comparative Information on OECD and Other Advanced and Emerging Economies. OECD Pub-lishing. 2017. 380 p.
11. Tax administration processes in Ukraine have been evaluated using the TADAT method. Available at: https://goo.gl/kiEvhK (Accessed 10/05/2019).
12. Tax Code of Ukraine: Law of Ukraine dated 02.12.2010 № 2755-VI. Available at: http://zakon2.rada.gov.ua/laws/show/2755-17/page3. (Accessed 05/10/2019).
13. Treaty on European Union. International Document of 07.02.1992 Available at: http://zakon0.rada.gov.ua/laws/show/994_029. (Accessed 05/10/2019).
14. Vdovichenko AM, Zubritsky AI (2013) Tax Gaps: Theory and Possibilities of Implementation in Ukraine. Economy and the state. No. 8. P. 17–21.
15. Warren N., McManus J. (2007). The Impact of Tax Gap on Future Tax Reforms. The Australian Economic Review. Vol. 40. № 2. Р.200–207.