Tax liability: Essence, Components, and Ways to Improve Compliance

Abstract

The effectiveness of the tax system is ensured through the use of rational approaches to the performance of functions and tasks assigned to its constituent elements. An important means of achieving tax policy goals at the national level is the achievement of a high level of fulfillment by taxpayers of the obligations assigned to them. This fact determines the relevance of studying ways to improve economic entities' fulfillment of tax obligations through the prism of studying their constituent elements. As part of the conducted research, the presence of facts of tax evasion was established, which is confirmed by the results of the work of the relevant regulatory authorities. It was determined that the process of fulfilling tax obligations is influenced by the actions of all participants in tax relations without exception. To determine the set of measures that need to be taken to ensure voluntary tax payment, the constituent elements of tax obligation have been identified (understanding the legal aspects of activities and their consequences, obtaining tax status through registration actions, compliance with tax mechanisms, accounting for tax calculations and preparing tax reports, managing tax risks, combating corruption, supporting the concept of voluntary tax payment, etc.). It has been established that to improve the fulfillment by taxpayers of their obligations, it is necessary to take measures to: improve the mechanism for calculating and paying tax payments; strengthen the information and explanatory work of regulatory bodies and expand the scope of consulting services for taxpayers; improve the provision of services by regulatory bodies regarding the fulfillment of tax obligations by taxpayers; use of indirect control methods using analytical and digital tools; apply taxation principles that will stimulate voluntary tax payment; determine tax strategy and form tax policy by economic entities at the micro level; improving methodological approaches to identifying risky business transactions and assigning taxpayers the status of risky; introducing a moratorium on unfounded inspections of business entities; increasing penalties for non-compliance with tax legislation.