Features of the Determination of Taxation Objects

Abstract

Attempts to develop any qualifying features that would allow clearly identify the objects of taxation, as well as to classify them, have so far not been successful. The tax system is not only a fiscal instruments, it is also an instrument of economic policy, a regulator of production, consumption and investments, balance of payments and income distribution in society. The specified functions of the tax system offer specifics for the definition and method of enshrining in legislation the objects of taxation. There are only three real objects of taxation. The first object of taxation is the newly created added value as a result of economic activity, which represents the company’s factor income – the labor fund and profit. Factor income is an object for calculating social contributions and taxes: on added value, on the income of individuals, on profit. Two other objects of taxation are related to the property rights of the people of Ukraine: to mineral raw materials and other natural resources and the property of individuals and legal entities, respectively. The specificity of the objects of excise and environmental taxes provides special functions assigned to them. The excise tax is intended to limit the consumption of harmful goods and satisfy the principle of fair taxation. Ecological material has the preservation of a safe environment for people’s lives, which ensures the transition to an innovative model of economic development and limiting the harmful effects of the economy on nature. This function of the environmental tax determines the specifics of the choice of the object of taxation. Rent should not be defined as a tax. In fact, this is the cost of mineral raw materials and other resources that belong to the people of Ukraine. This value should be removed in full and used by the people as a source of income for the Pension Fund of Ukraine and the formation of sovereign national funds for future generations.