Taxes and taxation, as well as the success of the tax system in general, are of great importance for the effectiveness of economic decisions. The state has found a way to restrain entrepreneurial activity in some directions and stimulate in others through the establishment of taxes, tax bases, objects and subjects of taxation, sanctions, benefits and so on. Taxes and taxation play a huge role in the process of redistributing the country's national income and GDP; they can affect capital at all stages of its turnover.
The tax mechanism is designed to relieve social tensions, even out taxpayers' incomes, ensure political stability and create all conditions for economic growth. What are taxes and taxation and what is it? This is the direct withdrawal by the state of a part of the public gross product to its advantage in order to form a budget, that is, the centralized finances of the state. After all, the state budget is 90 percent financially supported by taxes and various fines, penalties and so on.
A tax is nothing more than an individual, obligatory, but at the same time gratuitous payment, which is charged to individuals and organizations in the form of alienation of funds belonging to them either on the basis of ownership, or on the basis of economic management, or on the right of operational management. This is done in order to financially support the activities of the state. Tax and taxation are two different categories, the first of which is financial. And taxation is the process of collecting fees and taxes in general. It is also the implementation of tax control, as well as the protection of the legitimate interests and rights of all participants in this process.
Each country has its own tax system. So, taxes in the USA and Russia are completely different. But we can say that in developed countries, about 40 percent of GDP is redistributed in the form of tax and other mandatory contributions. This indicates that the level of state regulation in them is very high. But in Russia, the share of tax deductions to the consolidated budget is only 20 percent of GDP.
The tax is a complex system of relations, which includes a number of interacting components. They are called the basic elements of tax. A tax can be considered clearly established only if the circle of its payers is already defined, and, of course, all elements of taxation are established. These include the object of taxation, tax rate, period, base, procedure for calculating tax and the timing of payment.
The objects of taxation include not only the profit (income) of citizens and legal entities, but also nature management objects, certain types of activities, operations with securities, etc. A specific tax always has an independent and independent object of taxation.
The tax base is nothing more than the physical, value or any other characteristic of any objects of taxation.
Individuals and organizations are now considered to be participants in tax relations - these are payers of fees, taxpayers and tax agents. They also include state tax and customs authorities, executive authorities, and the Ministry of Finance of the Russian Federation.
The essence of taxes is usually manifested through the functions that they perform. These include fiscal, economic, distribution, stimulating, control, reproduction and social functions.
Thus, in the modern economic system, taxes and taxation play a huge role.