№ 4/2022

Fìnansi Ukr. 2022 (4): 7–26https://doi.org/10.33763/finukr2022.04.007

TAX POLICY

IEFYMENKO Tetiana ¹, IVANOV Yurij ², KARPOVA Vlada ³

¹SESE “Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9163-3959
²Research and Development Centre for Industrial Problems of Development of NAS of Ukraine
OrcID ID : https://orcid.org/0000-0002-5309-400X
³SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-3712-0391

Tax incentives under martial law: compliance-risk management

Introduction. In the conditions of the armed aggression of the Russian
Federation against Ukraine, the need arose to amend the current legislation aimed at
overcoming the negative phenomena in the economic, social and defense spheres.
Problem Statement. During the two months of martial law, six laws were passed that
amended the current tax rules and provided benefi ts to certain categories of taxpayers.
At the same time, most legislative acts were adopted without proper fi nancial, economic
and scientifi c justifi cation for their adoption. Th is has led to fi scal risks, which are
discussed in the article.
Purpose. Th e aim is to study the probable risks of the introduction of certain legal norms
in the conditions of martial law and to develop recommendations for their minimization.
Methods. Qualitative research methods were used to describe the existing diffi culties in
tax administration, quantitative methods – to analyze the benefi ts of corporate income
tax and VAT.
Results. It has been found that the analyzed norm-forming practice will lead to budget
losses and disproportionate taxation of other taxpayers. Th is is not in line with the concept
of compliance risk management, as these preferences can be used by other payers. As a
result, the risk of aggressive tax planning by those taxpayers who are not cove red by the
benefi ts will increase.
Conclusions. Fully unjustifi ed unconditional provision of tax benefi ts to certain categories
of taxpayers requires careful analysis in order to achieve the declared purposes. Proposals
for amendments to legislation to minimize fi scal risks within the compliance risk
management procedure have been formulated.

Keywords:compliance risk, tax benefi ts, income tax, value added tax, single tax.

JEL: -

Iefymenko T. . Tax incentives under martial law: compliance-risk management / T. . Iefymenko, Y. . Ivanov, V. Karpova // Фінанси України. - 2022. - № 4. - C. 7-26.

Article original in Ukrainian (pp. 7 - 26)

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