Principles of Good Tax Policy

Mishu0099

Thus, the tax system is a combination of national and local taxes and fees levied in the manner prescribed by law. In a broader sense, the tax system is a set of relations regulated by the rules of law enshrined in laws and other regulatory legal acts on taxation , which are manifested in specific forms and methods of taxation mediated by tax administration and control bodies. The structure of the tax system In the structure of the tax system, it is customary to distinguish five main elements presented in Fig. 1. Elements of the tax system Figure 1 - The main elements of the tax system [1] Some researchers consider the tax system much broader and distinguish the following elements in its structure [2] : set of taxes; tax authorities; tax law; principles of state tax policy;the procedure for distributing taxes between the budgets of different levels; forms and methods of tax control; ‒ conditions and procedure for tax proceedings; international agreements in the field of taxation, etc.

Principles of taxation The tax system is determined not only by the totality of taxes and fees, but also by the principles of its construction, which are enshrined in legislation. For the first time the principles of taxation were formulated by A. Smith. work " An Inquiry into the Nature and Causes of the Wealth of Nations” (1776), which is considered the most famous book of the 18th century, he proposed the principles of equality, certainty, convenience and cheapness of taxation, the es capital  whatsapp mobile number list  to sence of which is as follows [3 ] : Citizens are obliged to pay taxes on government spending, depending on their ability, mainly in accordance with the income received under the protection of the state; the tax must be precisely defined in terms of time, method of collection and amount, understandable and known both to the payer himself and to any other; the tax must be collected at the time and in the manner most convenient for the payer; the tax Collection costs of the finance department should be as low as possible compared to the amount of tax revenues.



John Stuart Mill , considering the basics of taxation, formulated the following principles for building the tax system of the state [4] : equality of taxes on the basis of an equal burden (taxation on a progressive scale is allowed); minimum income sufficient to purchase basic necessities should not be taxed; it is inappropriate to tax the amounts of savings and investments;taxation should be carried out not in proportion to the value of the property of the payer, but on funds that are intended for consumption expenses; it is not the tax system itself that causes damage to the national economy, but the excessive overall tax burden; The tax system cannot be limited to taxes on income without affecting capital. A new page in Understanding the principles of organizing the tax system was written by the outstanding German scientist and economist Adolf Wagner. He formulated nine principles of taxation, divided into four groups.