TAX ADMINISTRATION: REGIONAL ASPECT

Abstract

The publication considers the essence and purpose of tax administration; the main directions of strengthening the institutional capacity of tax authorities in the context of tax administration are identified; the efficiency of tax administration in cooperation with territorial authorities is substantiated.

Today there is a question of reforming the public financial management system. The defining directions and tasks are: improving the functioning of the tax and customs systems, achieving predictability and balance of fiscal policy in the next 3-5 years, identifying fiscal risks and taking measures to minimize their impact on the budget. Thus, the European course of our state provides for the application of effective mechanisms of tax administration.

The purpose of tax administration is the full implementation of the main functions of taxes - fiscal, distributive and regulatory. The term "tax administration" implies a set of decisions and procedures of regulatory authorities that: 1) determine the institutional structure of tax and customs relations; 2) organize the accounting of objects of taxation and taxpayers; 3) provide service to taxpayers; 4) ensure the organization and control over the payment of taxes.

The state of the country's tax administration is assessed by international organizations in order to increase the transparency of accountability in the areas of public finance management and revenue collection. The activity of the tax service in Ukraine in terms of its functional responsibilities in the direction of tax administration and other tax payments is generally in line with international practice of tax administration.

In Ukraine, the organizational model of the State Tax Service is being built on a functional principle with a management vertical. The article identifies specific measures to improve the efficiency of tax authorities in order to strengthen their institutional capacity. There is also a problem of reforming the tax service in the direction of improving the efficiency of tax administration in cooperation with local authorities, businesses and citizens.

The article stipulates that local governments can have a real impact on the amount of tax revenues to local budgets. To establish taxes and the sizes of their rates within the limits of the current legislation belongs exclusively to the competence of territorial bodies of local government. Accordingly, the timely and complete formation of local budgets' own revenues depends on the effective organization of such works. Therefore, it is important and necessary to give local governments the right to use the tax base and resource-material base in order to determine the economic potential of the region or community. It is also advisable to identify incentives for local governments to establish and collect local taxes. This can be done on the basis of: 1) improving the exchange of information between local authorities and tax authorities, 2) simplifying the system of tax administration in general; 3) harmonization of the tax administration system with world standards.