The scientific-practical Law Journal
“Almanac of Law” Volume 14 (2023), 54-59 p
Nikitin V. V. Improving the legislation of Ukraine to avoid and eliminate double taxation
The author carried out a comprehensive analysis of the theoretical and methodological foundations, normative foundations of improving the legislation of Ukraine to avoid and eliminate double taxation. The formation of the principles of overcoming double taxation through the implementation of the provisions of the current tax legislation is connected with the influence on the behavior of the relevant persons – both powerful and obliged. The impact on tax relations by the norms of tax legislation is carried out by detailing the capabilities and forms of behavior of bodies representing the state and guaranteeing the implementation of its interests in the payment of taxes and fees. This happens by granting the right to such bodies to issue preliminary clarifications on the grounds for carrying out one or another tax transaction, applying fines to taxpayers in case they do not comply with the relevant recommendations.
In order to improve the procedures of the double taxation avoidance mechanism in Ukraine, it is proposed to establish the procedure according to which residents of Ukraine are obliged to declare income received abroad, and to impose on fiscal authorities the obligation to check the compliance of the declared data. For the introduction of such a procedure, we offer the norms of Article 13.5. 13 of the Tax Code of Ukraine shall be amended as follows: «13.5. Residents of Ukraine are required to declare income received abroad by submitting an appropriate application to the tax authorities. Otherwise, the specified entities will be held liable for the unreliability of the information provided in the declarations in accordance with the current legislation of Ukraine. The authorities of the State Tax Service of Ukraine conduct a check of compliance of the information provided by the taxpayer with specific factual data and a certain international agreement, as well as the fact that the relevant tax amounts have been credited to the budget.»
In order to eliminate double taxation, the rules on the basis of which the profit of a permanent establishment or an enterprise that carries out trade with a foreign participant of the same group of enterprises should be additionally applied to the definition of a permanent establishment. On the basis of a comprehensive analysis of the theoretical and legal foundations, normative foundations of improving the legislation of Ukraine to avoid and eliminate double taxation, problems of imperfection of regulatory acts were identified and possible options for improving the legislation in the specified area were emphasized.
Key words: avoidance of double taxation, elimination of double taxation, tax exemption, tax credit, tax agreements, income taxation, double taxation.
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