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”.

tax payment

In addition, payments to stimulate the development of the national economy, also it must be grows factor of Agricultural activity for physical and juridical persons.
Public Principles means Tax legislation, Various legal acts and obligations of taxpayers any document related to the official publication. The state is obliged to inform the taxpayers and fee payments, to clarify the legal norms, as well as taxes. Rational and sustainable tax system can’t function without a certain principle. The interpretation of tax legislation can’t be classified according to your opinion. At the same time, the tax system should be understandable and acceptable to the majority of society. Therefore, the tax law should be the law of direct action, which excludes the executive instructions, explanations, letters and other legal acts necessary. The executive authority is not allowed to own interpretation of the tax law practice. According to this principle, the tax amount, time and method of payment of its tax payers should be known. This principle ensures the stability of the tax system. At the same time, the tax system must be flexible and able to adapt easily to the changing socio-economic environment. Taxes must be specified at the time of the tax for all items. A fee may be imposed can’t be considered when there is a specific tax subject, tax object, tax base, tax period, Tax rate, tax calculation and tax payment procedure. State authorities will lead to uncertainty in the law to violate the rights of taxpayers. The essence of the principle of certainty can be briefly summarized as follows: Each taxpayer should know the sequence in which tax and on what terms to pay.
Taxation simultaneousness based principle means: the normal functioning of the tax system is not allowed to generate income from the same source or object twice or more taxation. In other words, one and the same object by the law of the tax period, be taxed only once, and only one kind of tax. The world economy is in the process of strengthening the conditions of globalization, this principle is complicated. In this situation, it is almost guaranteed to have the same income tax in two or more countries. In this project, pointing the resolution of double taxation prevention treaty signing interstate widespread international practice.

tax efficienc

It is important principle theory for taxpayers that taxation would be convenience for them. According to this principle all tax should be payed favorable time and such form that is acceptable for every taxpayer. In other words, in the process of forming tax system and setting up any tax all formality must be for seen and act of tax payment should be simplified as much as possible. Tax payment should be done not by revenue receiver but by the organization, where revenue receiver is employed, tax payment should be match the period of incoming earnings. By this principle, it’s considerable that tax is established at consumption, when the tax payment is done during the buy of products or services.

It has important meaning that tax should be divided into governmental levels. This principle must be enshrined by the law. All governing institution (central, regional, local) should be authority about tax payment. At the same time tax payment into different level of budget should be regulated by the law of budget.

The Principle of tax payment system unity is essential. It appears from the unity of the financial politic. According to this principle it is not good idea to setting up such taxes, that can limit directly or indirectly movement of product/services or finances in the country or limit with other form productive activity of physical or juridical persons. Also it’s unacceptable to set up such taxes that restrict physical persons, jobs, products/services movement between regions of country, export of capital or invest within the other  municipality. Tax payment system must restrict able of tax exports. About this, mustn’t be set up regional or local taxes in the different level budget, if this payment will be redirect into the country territorial units tax payers.

The principle of effectiveness is very important. First of all it says that price of monitoring  on forming and functioning national payer system, also doing tax legislation shouldn’t be high. 

the principles of political economy and taxation-(tax system)

For making this principle real we have to use all variety of taxes, that will give us the opportunity to take into account the taxpayer’s property as well as the amount of income.                                                                                      

Also the usage of this denoted principle is important to stabilize the finances of country, exceptionally, during the economic crisis, because economically it is better for filling the budget to be multiple streams of income on the basis of wide tax base and comparatively  lower tax rates.

         The principle of justice and equality is connected to the principle of universality. According to this principle each person must pay Statutory fee and take part in financing the expenses of state. This principle don’t have  absolute character. It refers only the person, who is “taxpayer”. It means that tax legislation must not do the exceptions for separate categories of taxpayer. Also this principle doesn’t mean that every citizen is obliged to pay the tax despite of they have income or not.

        In conclusion, we can say that economic principles of taxation identify the core requirements, which must fit the proportionality, justification of economic taxation and the economy of tax administration. In fact, these principles identify important approaches, which must fit sales taxes.

     organizational principles of taxation

schematically, we can imagine  organizational principles of taxation in this way: organizational principles of taxation: efficiency, universalization,deftness,cost distribution by salary,common taxation system,tax in time,determination,public.

 

 The principle of taxation universalization is very important principle during the formation of the tax system.

     Tax system should have the same requirements for every tax payer, despite the form of ownership, the subject of taxation. It is unacceptable to require additional fee, to grow tax rates or differentiation, to establish tax concessions on the basis of the form of ownership, the organizational and legal form of enterprise, citizenship, geographical origin of the authorized capital and etc.

In addition, there may be a tax on the political, economic, religious affiliation, ethnic and other grounds.                                                                                                     

There must be common approach about tax calculation, despite of the object of taxation, location or source of income. 

tax management system (tax advice) tax questions, grow financial.

The maximum efficiency of the each exact payment is expressed by low government costs needed for saving the tax office . In other words, the tax system management/ managing costs and the tax legislation protection costs have to be minimal/ as low as possible. This principle is difficult to use in modern life because of the growth of  individuals and legal entities trying to avoid paying taxes and the growth/ rise of the shadow economy specific portion. The reason of the governmental financial costs growth in this direction/ sphere is also the tax legislation complication and the necessity of controlling units’ material-technical base strengthening.

We have to distinguish the commensurate principles of taxation, which means refilling the government budget according to the payed bills/ taxes correlated with taxing the payer’s payment. This principle can formulated as  balancing principles between the individual’s payment and the interests of the public purse. While setting new payments and determining the main/ core elements, we have to consider its economics outcomes/ results on filling the budget and the development of the national economics, besides that, its influence on the result of the payer’s payment agricultural business, according to the heaviness of the payment in particular.

The principle of abundant payments consists of several aspects. The most important is that according to which the government tax office has to base on differentiated taxes and taxation entities. The different taxes and taxation objects combination should give us the system, that will answer the requirements of optimal distribution for the tax payers. The second important aspect of this principle is not allowing “the one budget payment”, because in case of the political or economical situation changes, the budget can stay out of income. The abundance of taxes/ payments gives the opportunity of creating conditions for flexible tax policy, taxpayers pay out, equalizing the tax burden, exposuring on consumption and accumulation. Besides that, the mutual taxes filling up effect derives from the principle of abundant payments, according to which the artificial optimization of one tax payment causes the rise of amount of other payments. The principle of abundant payments makes it more difficult for dishonest taxpayer to get/ have the tax evasion opportunity. The principle of abundant payments practical use is the reasonable ratio between direct and indirect taxes. 

tax relief (tax equity, equality trust)

In other words, at this time actually existed regressive scale of tax taxation – the more a taxpayer’s property was, the less they paid. The poorer layers of society, on the contrary – they paid the largest part of their revenue as taxes to buy bread, salt, sugar and other essentials.

Thus, A. Smith’s ideas about equality and justice were exceptionally progressive and bold at this time. Modern tax system is based on progressive income taxation. Nowadays the content of these principles is different from the understanding in the A. Smith’s era: the more income is, the more tax must be paid.

According to the horizontal aspect of equality and justice the taxpayers who are in equal conditions should be considered equally by tax legislation, i.e. such taxpayers should be taxed the same tax rates.

There are two approaches to realizations of the principle of equality and justice in the world practice,tax relief. The first approach provides the benefits of the taxpayer. According to this approach paid taxes corresponds to the benefits which are given from the state services. So the taxpayer is returned some part from paid tax from the budget by funding various compensations, transfers, education, health and other social costs. The second approach is the taxpayer’s ability to pay tax.  In this case, this approach isn’t related to the budget spending structure – each pays its own taxes in accordance with its solvency.

These two approaches are considered in tax systems construction of the world practice, that provides favorable conditions for realization of the main principles of tax system construction.

The principle of effectiveness is essential among the tax taxation economic principles, which actually consists of two independent principles and is combined with the general ideology of efficiency:tax relief.

Taxes shouldn’t influence on economic decisions or the impact should be minimal. In other words, taxes don’t have to obstruct production development.  Effective tax system means the existence of such instruments, which stimulate economic growth, economic activity of citizens and organizations. Realization of this principle is only possible when the tax isn’t imposed on industrial capital, but directly on the income. The main idea isn’t rejection an opportunity of industrial taxation, but the tax rate doesn’t exceed the level that will lead to a reduction of the property.

principles of taxation (what is taxation?)

There were not scientifically argued principles of taxation. They couldn't find reflection in legal acts. The result of this is, that tax taxation was based on subjective and unfair approaches. Only over time they realize, that during the taxation should be provide taxpayer's interests and this process must subordinate to some principles.

     In XVIII-XIX centuries formed and in XX century adjusted principles of taxation, which relied on financial theory and taxation practice in our time formed in a system. This system of taxation we can join in three relations:

Creating principles of taxation

   

                                                                           

Economic

Organizational

Legal

Creating principles of taxation

Let's consider every principle in details.

Taxation Economic principles:

   Taxation Economic principles schematically we can present in this way:

taxation economic principles

                           

equality and justice

efficiency

fold

symmetry

abundance

 

solvency

 

utility

                   Taxation Economic principles

At first, we must separate principles of equality and justice. According to this principle tax burden distribution must be equal and each taxpayer must pay fair share in State Treasure. Every legal person must have part in State requirements of financing. At the same time, taxation must be universal and evenly distributed between taxpayers. Equality and justice of taxation must be provided in two aspects: vertical and horizontal.

    By vertical aspect of equality and justice people must pay payments based on their income. It couldn't be in other way, if we remember taxation system of old time in Western European countries. As it known, in that time, taxation system was based an indirect taxes and mainly subjects of primary services were applied.    

tax system (principles of taxation) Taxation for the economic, organizational and legal principles.

It should be noted that taxation is focused on the national economic interests, regardless of the state and their level of development. Tax is an economic category, because the monetary relations, which is formed on the one hand and the state on the other hand the physical and legal persons in carrying out a specific objective and purpose of governmental financial resources at the disposal. The tax is the State of its obligation to carry out the most important form of economic –his means of economic activity resulting from the profit tax is thus part of population, as economic categories reflect the actual relationships that are related to the overall social product and national income of the seizure. Tax as an economic category, as revenue, profit, price, etc. In addition, a tax on financial categories. Through the mobilization of the product and its use of the state budget expenditures for the financial system of relations. Taxes are characterized by the general properties that are common to financial relations, but it comes with its own distinctive signs. State credit, government spending and other financial categories of taxes, like the objective and the content of the carrier is based on various forms of ownership. At the same time taxes are in legal category. One of its rating imperativeness and legality of her as a normal basis. As a legal category, tax laws reflect legally formalized relations between the state and the taxpayer, the tax because the legal norms that its introduction, change, cancel and pay only means of law. Tax that is not paid on the basis of the law, its content is not a tax. Thus, in essence tax is the state and the taxpayer is actually one of the main forms of cooperation, which will ensure the functioning of the financial

XVIII century financial practices are derived from the interests and needs of the treasury. This is entirely subordinate to the interests and needs of imposing taxes and collection practices.