BALANCING THE INTERESTS OF TAXPAYERS AND TAX AUTHORITIES AS THE METHOD OF MINIMIZING TAX DISPUTES

Abstract

The author notes in the article that an increase in the number of tax disputes is influenced by many factors, including the constantly changing tax laws of Ukraine, low legal culture of taxpayers, the lack of professional training of representatives of tax authorities involved in tax audits, as the tax authority must correctly assess the circumstances, available facts and correctly apply to the facts of the current legal provisions, while preventing the abuse of power in making the relevant decision, which must be based on the public interest. A qualitative legislative regulation of the indisputable procedure for the collection of financial penalties will occur when financial penalties will be charged incontestably only in the absence of reasonable objections of the taxpayer, filed within the prescribed legal deadlines, that is, in the absence of a tax dispute. Finding a reasonable balance between the rights of taxpayers and the powers of the tax authorities should come to the fore when making changes to the tax legislation. The basis for achieving a balance between the interests of taxpayers and tax authorities can be served by proper explanatory and informational work. The state should develop a set of special measures to adapt taxpayers and employees of the tax authorities themselves to the action of the new tax legislation, regarding the corresponding change in their mentality, improvement of business cooperation and mutual understanding between them, increasing their responsibility for the performance of their tax obligations to the state and the realization of the rights provided by law. The institution of preliminary conclusions of tax authorities is proposed, which will simplify the assessment of tax losses by taxpayers in the planning of economic activities. The taxpayer submits an inquiry about the tax consequences of planned transactions and transactions with future counterparties for their riskiness. The tax authority then prepares and gives an opinion within two weeks.

Keywords

• tax dispute
• balance of interests
• taxpayer
• tax authority
• tax law
• preliminary finding
• public and private interests