Special Taxation Mechanism in Conditions of Functioning of the Simplified Taxation System

Abstract

The special taxation mechanism is used in the Tax Code of Ukraine as a key term in defining a simplified system of taxation, accounting and reporting, but it remains unjustified in terms of theoretical construction and semantic origin. However, even in the absence of a scientific definition, the special taxation mechanism has its practical application, as it participates in distributive relations in the implementation of financial and economic activities by micro, small and agricultural enterprises. The purpose of the article is to reveal the essence of a special taxation mechanism and its place in defining the Ukrainian simplified taxation system. The author connects the simplified taxation system with the “system” category and its inherent elements. The structure of the simplified taxation system was clarified. The differences between the different interpretations of the term “tax mechanism” were determined. According to the author, the special taxation mechanism is a separate scientific category. The hierarchical influence of the tax mechanism and the special taxation mechanism under the conditions of functioning of the simplified taxation system, accounting and reporting was revealed. The intermediary role of the special taxation mechanism between the tax policy of support and development of microenterprise, small and agricultural entrepreneurship and the simplified taxation system was proved. The content of the concepts of “special”, “mechanism”, “collection” and the phrase “mechanism of tax and collection” was characterized. The meaning of the concept of “collection of taxes and fees” was expanded to include the procedure of self-payment and accrual. The content of the phrases “voluntary payment” and “self-payment” of taxes and fees was differentiated. The author described the special taxation mechanism in the conditions of functioning of the simplified taxation system. The expediency of using a special taxation mechanism as a key phrase in the legislative definition of a simplified taxation system, accounting and reporting was justified.

Keywords

• tax mechanism
• special taxation mechanism
• simplified system of taxation
• accounting and reporting