№ 9/2017

Fìnansi Ukr. 2017 (9): 75–86https://doi.org/10.33763/finukr2017.09.075

TAX POLICY

MELNYK Viktor ¹, KOSHCHUK Tetiana ²

¹The University of the State Fiscal Service of Ukraine
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1013-4603

Improving tax transparency for counteracting aggressive tax planning

The article analyzes the legislative initiatives of the European Commission regarding the disclosure by large companies of the information about taxation of their profits based on the OECD recommendations on preventing the base erosion and profit shifting (BEPS), action plan 13 – guidance on transfer pricing documentation and country-by-country reporting, as well as the world experience in ensuring tax transparency through the establishment of mandatory requirements for it and the disclosure of information on a voluntary basis. It is shown that public control can improve the effectiveness of tax policy measures to curb tax avoidance (at the national and international levels), increasing the corporate social responsibility of companies and encouraging them to contribute to welfare through tax payments in countries where they are economically active. In addition, public control will contribute to better awareness of fiscal weaknesses. Proposals on counteracting aggressive tax planning in Ukraine have been developed, taking into account the trends of implementation of country-by-country reporting, OECD recommendations in the EU, initiatives of the European Commission to enhance transparency in the corporate income taxation and the practice of the disclosure of tax information by companies. The authors emphasize the importance of submitting to the tax authorities reports of large enterprises of Ukraine on taxation of their profits in general and in terms of countries of their economic activity, the publication of these reports after introducing new requirements for tax transparency in the EU, the mandatory disclosure of information by large enterprises about their total income, taxable income, tax payable, as well as providing tax authorities with a number of additional generalized tax indicators by representatives of Ukrainian big business. It is stressed that it is important to implement these measures along with other measures to limit tax avoidance provided by the BEPS action plan.

Keywords:profit, corporate income taxation, aggressive tax planning, preventing the base erosion and profit shifting, tax transparency

JEL: H20, H26

MELNYK V. . Improving tax transparency for counteracting aggressive tax planning / V. . MELNYK , T. . Koshchuk // Фінанси України. - 2017. - № 9. - C. 75-86.

Article original in Ukrainian (pp. 75 - 86)

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