The tax system is a set of taxes and fees that are levied on business entities and ordinary citizens in accordance with relevant legislation (for example, the Tax Code). The necessity of its existence is determined by functional state tasks, and the stages of development depend on the historical features of the evolution of statehood. In other words, the organization and structure of the tax system should characterize the level of statehood of the country and the development of its economy.
Construction principles
The tax system is a set of revenues charged to budgets of various levels, the construction of which is carried out on the basis of certain principles in accordance with the Tax Code and the Constitution of the Russian Federation. The domestic tax system is characterized by a three-level type, implying a division into federal, regional and local taxes. This type is fully consistent with world practice in various federal countries.
As the main principles of the tax system, special attention should be paid to the following:
- each person must pay taxes and fees on time;
- taxes are not discriminatory and cannot be applied in various ways based on racial, social or religious criteria;
- differentiated rates are not applied, as well as certain benefits, based on forms of ownership, place of formation of capital or citizenship;
- arbitrariness in determining the amount of tax payments is not allowed.
Taxation and tax system
The effectiveness of any
tax system must be ensured by observing certain requirements, criteria and basic
principles of taxation :
- justice, assuming uniformity and proportionality in the distribution of taxes between citizens;
- certainty, which consists in accurately determining the amount, method and time of payment;
- amenities: tax is collected at the most convenient time and in the most convenient way for the payer;
- Savings, implying a reduction in costs when levying taxes.
These principles were formulated back in the 18th century by A. Smith.
Tax system functions
This system serves as a public administration mechanism for the redistribution or distribution of income, which are determined by its functions.
So, the tax system is a tool that contributes to the formation of the revenue part of the state budget spent on various needs of the country, expressed in the maintenance of the state apparatus, army, science and technology, education, orphanages, health care and the environment. The factors listed above are an expression of the fiscal function in the tax system.
The tax system is an effective tool of economic regulation of the state, manifested in the impact on social reproduction, due to the introduction of certain restrictions or the implementation of simple control of certain processes. Thus, in this manifestation of the tax system, we are already talking about its economic function.