OPTIMIZATION OF THE TAX BURDEN OF THE BUSINESS ENTITY

Abstract

The article examines the process related to the optimization of the tax burden of economic entities, namely the theoretical aspect. The tax system of Ukraine is in a constant process of changes and search for optimal efficiency both for budgets of all levels and for stimulating the processes of business activity. The taxation process itself is the interaction of the state with taxpayers. In this process, there is a constant conflict of interests between the state and taxpayers. An important component of fiscal administration in tax administration is the functioning of fiscal bodies that ensure the filling of the revenue part of the country's state budget. Different taxes and fees affect the economic activity of business entities in different ways. Issues related to the optimization of taxation include strategic tasks related to maintaining a certain balance of interests between business entities in the context of tax payment, and the state - filling the revenue part of all levels of budgets. The goal of tax regulation is to achieve and maintain a certain balance of economic interests of all participants in tax relations. Tax regulation in the system of tax administration can be divided into several blocks, namely tax incentives, tax benefits and forms of responsibility for the assignment of tax legislation. Tax optimization involves the process of avoiding tax penalties and minimizing tax payments, both in the short-term and in the long-term. Each business entity in the process of searching for a method of optimizing its tax burden should pay attention to the specifics of its economic activity, as well as take into account the effect of mechanisms of taxes and fees that it pays to the budgets of different levels. Estimating the level of the tax burden is a rather complex procedure that has not yet been fully studied and, as a result, a single methodology has not yet been formed. The process of tax optimization is a special aspect of the financial discipline of economic entities, in order for this process to be effective, it must be properly planned. A distinctive feature of tax burden optimization, tax evasion and fee evasion is that the business entity uses non-prohibited or legally permitted ways to reduce its tax burden.