FINANCES OF THE INSTITUTIONAL SECTORS

KRUPKA Mykhailo ¹, KMIT Vira , TKACHYK Lesia

¹Ivan Franko National University of Lviv
OrcID ID : https://orcid.org/0000-0002-8775-1397

Formation and peculiarities of corporate tax management under current economic conditions

Current economic conditions and the integration of Ukrainian economy into the European economic space require new approaches to financial management for businesses, including tax expense, which optimization is possible through of formation and implementation of such management subsystem as a corporate tax management. Thus, the article explores an economic content of the category ""tax management” and its structure as well as peculiarities of organization and functioning of the corporate tax management. On the basis of analysis of the impact of state tax management on development and activity of domestic business entities, a model of interrelation between the level of tax administration quality in the country and the tax burden is elaborated. Tax analysis, which main purpose is to determine the tax burden level, is of high importance for decision-making on tax optimization in an enterprise. A set of indicators for the analysis of tax burden as one of the main causes of enterprise performance is suggested, and the model of the interdependence of the tax burden and the value of labor costs and taxable income is presented. Using tools of economic and mathematical modeling, the authors study the tax burden of business entities in construction industry and developed an optimization model of corporate tax management, which is based on balancing between the proportion of ""legal” and ""illegal” products and is aimed at maximization of business entity’s profit as well as the amount of taxes and charges paid to the state.

Keywords: tax management, corporate tax management, state tax administration, tax burden optimization model.

JEL: H20, H21, G32

KRUPKA M. . Formation and peculiarities of corporate tax management under current economic conditions / M. . KRUPKA, V. . KMIT, L. TKACHYK // Фінанси України. - 2014. - № 3. - C. 69-82.