Corporate legal relations and tax gaps: the theoretical approach

Keywords: taxation, tax gap, corporate rights, corporate legal relations


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.


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How to Cite
Slavkova, O., & Hordiienko, M. (2019). Corporate legal relations and tax gaps: the theoretical approach. Bulletin of Sumy National Agrarian University, (4 (82), 3-6.