Tax forecasting as part of a macro financial controlling system: the case of Ukraine

Abstract

Tax forecasting as part of a macro financial controlling system: the case of Ukraine The current system of forecasting and tax planning in Ukraine is oriented to the needs of the government, its goal being to calculate the desired amounts of tax revenue. Fiscal authorities apply administrative pressure on businesses to implement tax plans. In Ukraine, tax forecasting is a process that is focused on achieving short-term goals without taking into account the impact of such actions on the future economic environment, therefore negatively affecting the quality of forecasts. The aim of this article is to justify the directions of tax forecasting improvement in the macro financial controlling system. Elements of tax forecasting and the planning system are examined. The main methods of tax forecasting that are applied by the Ministry of Finance of Ukraine are analyzed. The need to improve the methodology for tax fore-casting, taking into account the expectations of economic agents, is proved. Tools and criteria for effec-tive tax planning and forecasting in Ukraine for controlling bases are developed.

Keywords

• taxes
• planning
• forecasting
• controlling system
• business entities