№ 11/2017

Fìnansi Ukr. 2017 (11): 89–109

TAX POLICY

CHEKINA Viktoriia Denysivna¹

¹Institute of Industrial Economics of NAS of Ukraine

Smart industry and taxes: common ground

Amid a large number of articles on new technologies, principles and approaches to production, automation and robotization, cyber-physical systems, recently perceived as futuristic essays, questions are increasingly raised about how such transformations affect the level of employment, the operating costs of enterprises, the level of tax revenues and the traditional tax system. Economic transformations that occur due to the rapid development of the latest technologies of the smart industry are investigated for improving the tax policy of Ukraine. The consequences of these changes for the tax sphere are revealed and possible directions for the modernization of the tax system in the near future are outlined. It is established that industry smartization and economy digitalization can influence the increasing volume of purchase and sale of digital services and digitized goods, the growth of transnational transactions associated with technological mergers and acquisitions, the increase in “tax base erosion”, higher unemployment and income inequality reducing the number of low-skilled jobs and increasing demand for STEM specialists. It is determined that traditional tax instruments and alternative proposals can be used to compensate for the loss of tax amounts, to support business in smarting industrial production and finance a “new” education. It is justified that during the establishment of the smart industry in Ukraine, it is advisable to prepare the tax system for full digitalization (both technological and personnel), to conduct constant monitoring of industry smartization and economy digitalization, their consequences for the stability of tax regime, to inform about the benefits and risks of digitalization that business and society will have in the near future, and about the ways, methods and tools that will help timely adapt to changes.

Keywords:tax system, smart industry, digitalization, tax revenues, robotization, block administration, tax administration

JEL: H21, E42, O39

CHEKINA V. D. Smart industry and taxes: common ground / V. D. CHEKINA // Фінанси України. - 2017. - № 11. - C. 89-109.

Article original in Ukrainian (pp. 89 - 109)

Download

Downloads :251

1. Pritchard, G., Hatherell, D., Young, L. & Stocker, A. (2017, January 24). When tax meets technology. DU Press. Retrieved from dupress.deloitte.com/dup-us-en/focus/industry-4-0/tax-implications-of-new-industrial-revolution.html#endnote-sup-6.
2. Deloitte. (2015). Making things in a changing world – Industry 4.0 & Indirect Taxes. Retrieved from www2.deloitte.com/content/dam/Deloitte/uk/Documents/tax/deloitte-uk-indirect-tax-making-things-changing-world.pdf.
3. PricewaterhouseCoopers. (2017). Industrials tax strategy 4.0. Retrieved from www.pwc.com/us/en/industrial-products/navigating-tax-issues.html.
4. Berings, S. (2016, October 5). The impact of Industry 4.0 on your tax strategy is bigger than you may think. LinkedIn. Retrieved from www.linkedin.com/pulse/impact-industry-40-your-tax-strategy-bigger-than-you-may-stan-berings.
5. European Parliament. (2016). Tax Challenges in the Digital Economy. Retrieved from www.europarl.europa.eu/RegData/etudes/STUD/2016/579002/IPOL_STU(2016) 579002_EN.pdf.
6. Sitra. (2017). Digitalisation and the future of taxation. Retrieved from www.sitra.fi/en/articles/digitalisation-future-taxation/.
7. OECD. (2017). Base erosion and profit shifting. Retrieved from www.oecd.org/tax/beps/.
8. Shiller, R. (2017). Robotization Without Taxation? Project Syndicate. Retrieved from www.project-syndicate.org/commentary/.
9. Delaney, K. (2017). The robot that takes your job should pay taxes, says Bill Gates. Quartz. Retrieved from qz.com/911968/bill-gates-the-robot-that-takes-your-job-should- pay-taxes/.
10. Tax in the Age of Blockchain. (2016, November 11). Retrieved from www.greenwoods.com.au/media/1847/tax-in-the-age-of-blockchain.pdf.
11. OECD. (2017). Technologies for Better Tax Administration – A Practical Guide for Revenue Bodies. Retrieved from www.oecd.org/ctp/technologies-for-better-tax-administration-9789264256439-en.htm.
12. OECD. (2017). Advanced Analytics for Better Tax Administration – Putting Data to Work. Retrieved from www.oecd.org/ctp/advanced-analytics-for-better-tax-administration-9789264256453-en.htm.
13. OECD. (2017). Publications and products – Forum on Tax Administration. Retrieved from www.oecd.org/tax/forum-on-tax-administration/publications-and-products/cooperative-tax-compliance-9789264253384-en.htm.
14. Future of Life Institute. (2017). Asilomar AI Principles. Retrieved from futureoflife.org/ai-principles/.
15. Orseau, L., Armstrong, S. (2017). Safely Interruptible Agents. Retrieved from www.fhi.ox.ac.uk/wp-content/uploads/Interruptibility.pdf.
16. PricewaterhouseCoopers. (2016). Industry 4.0: Building the digital enterprise. Retrieved from www.pwc.com/gx/en/industries/industries-4.0/landing-page/industry-4.0-building-your-digital-enterprise-april-2016.pdf.
17. After Amazon, EU considers next steps on new digital taxes. (2017). Tech EU. Retrieved from tech.eu/features/17463/amazon-eu-new-digital-tax-laws/.
18. Taxes on purchases in SurveyMonkey. (2017). Retrieved from help.surveymonkey.com/articles/ru/kb/Taxes [in Russian].
19. Sorokina, O. (2016). “Tax on Google”: what awaits foreign Internet companies in 2017. Forbes.ru. Retrieved from www.forbes.ru/kompanii/336337-nalog-na-google-chto-zhdet-inostran nye-internet-kompanii-v-2017-godu [in Russian].
20. 2017 Identity Fraud: Securing the Connected Life. (2017, February 1). Javelin. Retrieved from www.javelinstrategy.com/coverage-area/2017-identity-fraud.
21. European Union. (2016). Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (Text with EEA relevance). Retrieved from eur-lex.europa.eu/eli/reg/2016/679/oj.
22. Personal Data: The Emergence of a New Asset Class. (2011). World Economic Forum. Retrieved from www3.weforum.org/docs/WEF_ITTC_PersonalDataNewAsset_Report_ 2011.pdf.
23. EY. (2017). Digital disruption propels industry shifts – and record annual value. Retrieved from www.ey.com/Publication/vwLUAssets/EY-m-n-a-4q16-and-year-in-review-report/$FILE/EY-m-n-a-4q16-and-year-in-review-report.pdf.
24. Overchenko, M., Shlejnov, R. (2013, May 27). How Microsoft, Apple and Hewlett-Packard get away from taxes. Vedomosti.ru. Retrieved from www.vedomosti.ru/library/articles/2013/05/27/uklonenie_poamerikanski [in Russian].
25. Dale, B. (2016). FedCoin: When the Central Bank Copies Bitcoin. Observer. Retrieved from observer.com/2016/06/fedcoin/.
26. David Rutter of R3 Talks Blockchain at TechCrunch. (2016, December 8). Chatsworth Communications. Retrieved from www.chatsworthcommunications.com/david-rutter-ceo-of-r3-talks-blockchain-at-techcrunch/.
27. Buntinx, J. (2016, October 17). The Blockchain Makes Headway in Oil & Gas Industry. BTCMANAGER. Retrieved from btcmanager.com/the-blockchain-makes-headway-in-the-oil-and-gas-industry/.
28. The Seam has created a blockchain-consortium for the ginning industry (2017, January 6). ForkLog. Retrieved from forklog.com/kompaniya-the-seam-obyavila-o-sozdanii-blokchejn-konsortsiuma-predpriyatij-hlopkoochistitelnoj-promyshlennosti/ [in Russian].
29. Bloomberg BNA. (2016, November 28). Preparing for Digital Taxation in a Blockchain World. Retrieved from www.bna.com/preparing-digital-taxation-n73014447764/.
30. How the blockchain helps collect taxes. (2017, July 13). Today News. Retrieved from today-news.com/publications/cryptocurrency/Kak-blokcheyn-pomozhet-sobirat-nalogi-84805.html [in Russian].
31.. Kharif, O. (2016, December 21). Big Banks Are Stocking Up on Blockchain Patents. Bloomberg. Retrieved from www.bloomberg.com/news/articles/2016-12-21/who-owns-blockchain-goldman-bofa-amass-patents-for-coming-wars.
32.. International Federation of Robotics. (2016). IFR World Robotics Report 2016. Retrieved from ifr.org/ifr-press-releases/news/world-robotics-report-2016.
33. Vishnevskiy, V. P., Chekina, V. D. (2014). Strategic Directions of Ukrainian Tax Policy in the Sphere of Industrial Development Regulation. Economy of industry, 1 (65), 17–30.
34. Ukrainian Chamber of Commerce and Industry. (2016, December). Digital agenda of Ukraine – 2020 (project). Retrieved from ucci.org.ua/uploads/files/58e78ee3c3922.pdf [in Ukrainian].
35. Bandholz, H. (2016). The economic and social consequences of robotization. Jobs and Development. Retrieved from blogs.worldbank.org/jobs/economic-and-social-consequences-robotization.
36. The Inclusive Growth and Development Report 2017. (2017, January). World Economic Forum. Retrieved from www3.weforum.org/docs/WEF_Forum_IncGrwth_ 2017.pdf.
37. Taxing robots won’t work, says Yanis Varoufakis. (2017, March 2). World Economic Forum. Retrieved from www.weforum.org/agenda/2017/03/taxing-robots-wont-work- says-yanis-varoufakis.
38. PricewaterhouseCoopers. (2017). A decade of digital. Keeping pace with transformation. Retrieved from www.pwc.com/us/en/advisory-services/digital-iq/assets/pwc-digital-iq-report.pdf.
39. HB 2414 Tax Credit for Interest on Higher Education STEM Loans. (2017). Tax Fairness Oregon. Retrieved from olis.leg.state.or.us/liz/2017R1/Downloads/Committee MeetingDocument/99715.
40. SB 413 Senate Bill – Bill Analysis. (2013). California Legislative Information. Retrieved from www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0401-0450/sb_413_cfa_201305 02_153038_sen_comm.html. 41. The MPI Internet of Things Study. (2016, April). BDO.com. Retrieved from www.bdo.com/insights/industries/manufacturing-distribution/the-mpi-internet-of-things-study.