Principles of Fairness and Their Reflection in Taxation of Economic Entities in the Domestic Tax System

Abstract

The article is aimed at theoretical substantiating the conceptual bases of taxation fairness as a component of tax system. For solution of the aim set in the article, general methods of scientific knowledge together with research of economic phenomena were used. The theoretical-methodological basis of the research is the work of foreign and domestic scholars who study the problems of the tax system as a whole and taxation fairness in particular. The following methods were also used in the research: monographic, comparison, abstract-logical, scientific generalization. The theoretical aspects of taxation fairness are considered. The main provisions that characterize the level of fairness of tax system are analyzed. The possibility of introducing approaches to compliance with the essence of fairness into the tax system is evaluated: from the point of view of the taxpayers’ solvency; compliance of the benefit received by taxpayers from the State; observance of a harmonious combination of interests of all participants in tax relations. It is reasoned that tax benefits do not contradict the principle of fairness in taxation. It is proposed, in the current version of the Tax Code, to reflect the principle of taxation fairness, which should serve the legislative and executive authorities, as well as taxpayers as a guideline in the development and implementation of tax policy.

Keywords

• tax system
• taxation fairness
• tax benefits
• taxpayers
• personal income tax
• taxation principles