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THE STATE FISCAL SERVICE OF UKRAINE REFORM IN THE CONTEXT OF PUBLIC FINANCE MANAGEMENT MODERNIZATION


Taking into consideration decentralization processes in Ukraine according to the President's Program «Strategy 2020» and inefficient tax administration, SFS competencies and powers should be changed. The authors analyse conceptions concerning the State Fiscal Service of Ukraine modernization and make conclusion that these concepts do not consist any statements which would change approaches to control activity of fiscal body. Tax control is still focused on evaluating taxes in the past. Proposals concerning structure changes in the context of financial decentralization are not clear; distribution of functions between levels of SFS is absent. Moreover, ways to achieve definite in the SFS institutional reform presentation goals and objectives, mostly the same as they were in previous government programs and conceptions.

The authors consider that tax control should prevent tax offences and cover current business activity. Only then it will prevent tax offences. Without changers in the approaches to the control any modernization of the fiscal authorities' structure will not be successful. To establish partnership relations between fiscal authorities and taxpayers the following measures should be made: systematize tasks and functions of fiscal bodies, avoiding their duplication; identify completely tax inspector's rights at the legislative level; develop a system of tax officer's administrative responsibility, identify the subjects who have to pay penalties, the kind of offences and the size of penalties.

To solve the problem of the relationship between tax authorities and taxpayers, the activity of state fiscal service should be organized not by functional directions, but by the categories of taxpayers: large taxpayers, medium business and small

enterprises. For these three categories of taxpayers different approaches to support and cooperation with them should be used. Cooperation with large tax payers should be organized on the principles of permanent location of a group of tax inspectors at the place of taxpayer's business activity.

The authors offer the next Fiscal authorities status and structure: 1) SFS should be the division of Ministry of Finance and it must lead general taxpayers and tax revenues registers, include analytical department, large taxpayers office and department of financial investigation. 2) Service centres for medium and small business taxpayers should be established at the law level. Their main goal should be serving and assisting taxpayers.



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Keywords:  State Fiscal Service of Ukraine, SFS reform, tax control, tax offences, tax administration.

FINANCIAL INSTITUTIONS

Tymchenko O.
Dr. in Economy, professor, SHEI «Kyiv National Economic University named after Vadym Hetman», Finance department

Sibiryanska Yulia
PhD, Associate Professor, SHEI «Kyiv National Economic University named after Vadym Hetman»

 

 

 

 

 

 

 

 

 

 

 

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