german economy

Germany has the strongest economic potential of the country in Europe, and not only in Europe. "Big Eight" countries, it is just behind the US and Japan. Transport and industrial sectors are the largest, banking and financial services sector in the case. energetic developing both local and imported raw materials. In mechanical engineering and the chemical industry's leading branches of industry. Machine-leading areas cars producing industry, power sector it has not competing in Europe. The chemical industry is the first to stand out. "Basf" and "Bayer" are chemical giants. Agribusiness is the largest after neighboring France the same sector in the European Union.

Germany is high developing industrial country, by GDP (2.321 trillion) worlds third country after united states and japan.

• Structure of GDP – (%) agricultural-1, industry-32, service-67
• Export – auto transport , electronic, industry goods, textile goods, iron, plastics and other.
• Budget – 802 000 billion
• Currency – EU ( euro)
• Largest companies – Mercedes bens, Volkswagen, Audi, BMW, Porsche, Adidas.
• Largest Bank – deutsche bank.

federal tax

Often taxation theorists detach other principles, such as federalism, the principle of tax law retroactive denial of principle, taxes correlation principle, tax and financial policies of the principle, taxation of social principles, Taxation of a principle of priority,federal tax , economics tax neutrality principle, the taxpayer's non-discrimination principle, the principle of avoiding double taxation principle, the principle of transparency of tax procedures, etc. Is not difficult to notice that the following principles are reviewed by our basic principles of the component parts and so for them a separate status to the principle inexpedient.

The principles of taxation, as a whole system, as well as its direction is not the world of theory and practice in the general tax rules. At the same time there are principles which are recognized axiom and principles, which are not certain, because they are either derived from any of the generally accepted principle or complements it.

Our principles are the key provisions of the taxation, which are necessary for the formation and improvement of the management of the tax system, the economic,federal tax , political and social conditions. Any country is obliged to take into account the taxation system to ensure the stable development of their economy and the basic principles for the formation of the tax system. Some of the principles, such a multitude of taxes, flexibility,federal tax , economy and some other necessary and reachable. Other principles of the protection, such as equality and fairness, proportionality and some others are practically difficult to implement, but the state should try to protect them and try the practical realization. Taxation principles in his essence are fundamental guiding ideas, which are all legal tax's main benchmark. Exactly building on this government creating the national tax system. Tax principles unity creates the ideal basis for taxation and tax doctrine, according to which in turn is formed in tax policy. The latter finds its expression E taxes and fees in the legal instruments. Tax doctrine and policy defines the main directions of constructing a state tax system, so as a rule,federal tax , they are subject to the same adjustments and drastic changes in the political or social conditions, and in terms of tax reform format.

We have dealt with taxation principles leads to the conclusion that the fair tax taxation should be based on the state, society and harmonious combination of the interests of taxpayers.

In conclusion we can say that the principles of taxation is rational taxation of the core ideas, rules, regulations and criteria which will ensure the realization of the goals.

legislative principles of tax

Conclusively can be said that legislative principles of Tax deduction determine the requirements concerning the legislative issues for drawing, changing and canceling of the tax. They represent universal statements that give legislative regulatory mechanisms for tax system and prognosis and registration of the main institutes for tax law based on scientific bases. In the economical literature can be found other principles for tax deduction. Among them is widely spread scientific principles for formation of the tax system. The main concept of this principle is that amount of tax after payment of the tax must give opportunity for receiving the income for fulfillment of normal functioning. According to this principle during establishing tax period cannot be managed interests within short period of time that will be directed toward treasury filling and against economic development and against the interests of tax payers. Easily is found that consent of this principle fully coincides proportionality that is why according to our view scientific approach toward tax formation system cannot be considered as separate principle. Also can be said that any practical use of tax deduction need serious scientific approach and analysis. Interesting is economical substantiation principle of tax deduction. The main point of this principle is that during tax deduction must foreseen not only tax payment by the payer but also economical approach. Actually economical substantiation principle of tax deduction excludes self establishing of the payments and requires that deduction of the tax be accomplished via tax potential of the person. Tax and duty unity that represents tax load composition must afford an opportunity for the payer to accomplish payment using their constitutional right, including ownership right. Coming from the mention it is clear that at any actual payment established by the law must have economical substantiation. This principle is based on property condition evaluation of the tax payer's because during tax deduction conditions foresee tax potential of tax payer. Such evaluation is accomplished based on two criteria one of which evaluates the received profit of the tax payer and other its solvency. It is clear that more the payer receives the profit more is the level for his/her tax deduction and appropriately more is solvency ability. According to our view the main content of this principle shares the proportionality principle of tax deduction and so economical substantiation principle of tax deduction cannot be mentioned as separate principle.

generally accepted accounting principles

F.Nits, in his labour  "Science of the basic financial principles," wrote : "People, according to the old tradition, pay  taxes by  their property,gentry by his blood and clergy with prayers". In that case it is interesting Ph.Golbakh's opinion,according to which it is essential to behave like this that the tax to be universal,this burden should be beared by all of subjects . Liberation from the taxes creates injustices and inequalities among the citizens.
Of course this principle can't be absolutised,because the right of existence has a situation,when vulnerable persons who are in need of social assistance (pensioners, the disabled, the unemployed) are free from the tax payment. In this case the principle of  equality isn't violated,because there is a redistribution of income and tax differentiation process.And this completely responds to the principle of social justice.
While discussing this issue, the starting point is the fact that justice is the basis of equality,which in some scientists opinion is its essence.In the present situation,the main function of justice is to achieve equality and not to immortal of irregularity...Implication that the law equally diffuses to all persons in any situation and in spite of their category: without any rich and the poor, elites and ordinary people.The law, which is used  without discrimination, can be considered the embodiment of justice.From the for said taxpayers equality can be considered as a just taxation.In this case, the issue is related to the case of private equality  which is based on international law  by the universally recognized principle of non-discrimination.Basic human rights and freedoms for the protection of the Convention (Rome, 4 November 1950), according to the 14th article of the rights and freedoms must be provided for each without any discrimination.The principle of equal tax burden is expressed by taxpayers.At the same time, the principle of equality of taxation and the tax burden equal confusion can not be identified , because the first is much broader in its content.
Tax legislation is quite important principle of priority.Its essence is that the regulations,which aren't related to taxation purposes should not contain standards that will establish specific provisions on taxation.This means that if the "non-tax" laws contain standards which is related to tax relations,then they may be used only if they are reinforced by the tax legislation norms. Thus, the standards should be used only during the collision of the tax provisions of the laws. This principle can not be extended, because it applies only to cases in which tax rules are.

what is taxation ? (general principles of taxation)

Some of the country’s constitution explains the tax payment obligation, in the state funding with the participation necessity of all citizens. For example, according to the article 53 of the Italian constitution everyone is obliged to take part in the state expenses of their own tax capacity. Taxation principles with constitutionally legalize terms stands out the constitution of Brazil. The constitution provides, that taxes should be accorded to the private character, and should be divided in accordance of the tax payers economic possibility. In the constitution 145 of 162 articles, the taxation principles are determined in detail and is reflected some interesting and for all common principles. For example, general principles can be attributed to any ground with tax payer discrimination, special attention should be paid to the principles of the economic validity of the principle of taxation, taxation for the confiscation of the principle of not giving and inadmissibility of such tax, which creates artificial barriers  and restrictions during the movement of people and goods. According to Liechtenstein constitution, state provides for fair taxation and exempt from taxes for the existence of a minimum (minimum wage) and imposes with high tax rates the great property and incomes. The principle of imposing tax law is reflected, almost in all of the country’s constitution. Japan’s 30th article of the Constitution this principle this principle is simple formed:”Population are subject to taxation in accordance with the law”. According to the article 34 of the French Constitution the law sets the rules, related fees and their removal. The principle of the tax system is fixed to the US Constitution, in  8th department the 1 article is about a state of all tax fees and excise duties on the uniformity of the constitutional states of this country, unlike many other countries, granted to have the tax removed from the financial goal priority. This principle is actually prohibits the state to provide financial expenses other than for the purpose of introducing tax. The principle of equality and fairness is closely linked with the above principle. The essence of the principle is in administration of fair taxation and in equality of the state and the taxpayers. Tax legislation clearly and accurately supposed to build of non-discrimination principle the obligations and responsibilities on the both sides. Despite the clarify of the principle of taxation in the history keeps many facts, when individual citizens and social groups legally avoided paying tax.

tax by constitutional

   According to Article 94 of the Constitution:

"1. Obligatory to pay taxes in the amount and manner prescribed by law.

2. The structure of taxes and the introduction rule are determined by law

3. The exemptions are only allowed by law.

4. Establishment of the new overall state taxes, except excise tax, or the total state taxes according to the type of upper rate limit can be increased only through a referendum, in addition to the organic law, only the government has the right to initiate a referendum.

5. The national introduction of a new tax or increase the marginal rate of tax will not be considered a change in the tax or the alternative of replacing them and at the same time does not increase the tax burden. The national introduction of a new tax or a marginal tax rate increase will not be as kind to the marginal rate within the tax rate change.

6. In this case, as we see one of the key principle of universality is established by constitution. The above principles of taxation is limited to the constitutional principles of the national law.


In practice the principle of universality of taxation is the most common constitutional principle. But I must say that there are exceptions. North Korea, for example Article 25 of the Constitution states that the state completely abolishes the tax system, which is the ancient heritage of the old community. [21] At the present stage of the tax obligation to pay almost all of the country's constitution is fixed, and the tax liability is determined by the military and other important constitutional obligations in a single place. taxpayer's obligation to the highest level is indicated by the fact that the payment of taxes universality and bound predominantly set in the Constitution of the chapters, which determines human and civil legal status - for example, the Japanese Constitution, Chapter 3 "rights and duties".

tax forms-(juridical principles of the tax legislation)

We can put everything in a nutshell and say that organizational principles of taxation are the statutes, that determine formation and functioning of the tax system.

Juridical principles of the tax legislation:
We can demonstrate the juridical principles of the tax legislation schematically, as it is shown on the picture below (pic. N4)

Juridical principles of the tax legislation
1) Tax legislative form
2) Equality and justice
3) Tax legislation Equality

Juridical principles of the tax legislation
Tax legislation admits the fact, that the terms and conditions between authority and taxpayer must be established by law. Taxes must not been set arbitrarily. It’s impermissible to levy the taxes, that contradict the realization of citizens’ rights, regulated by the Constitution.
For as much as the taxation can somehow limit the human rights, when one sets the taxes, there are too many terms and conditions that must been foreseen evidently. For example, human and citizen rights must be limited by a law with only the portion, that is essential to protect: bases of constitutional system, plural moral, health, defensive capacity and safety of the state.
That’s why the statute must be the only determinant of the issues, connected with the taxation (such as: concept and type of taxes; establishment, introduction, modification the terms of payment and the cancellation of taxes…). The implementation of this principle will be the guarantee of united national taxation system.
It is worth to say that some wide-spread principles of tax legislation couldn’t legitimate as statute and remained only theory, while some principles formed as law and they were written down in the Tax Code. Among these principles we must name the standard-principles at first. In some countries they are a part of the Constitution and people call them “Constitutional Principles of the Tax Legislation”.