The existence of a tax system is not accidental. It performs specific important functions that accurately implement government policy.
What is the essence of taxes
In order to act effectively in the public interest, the state develops and implements various policy directions: environmental, social, demographic, economic, etc. In turn, due to tax contributions, the country's financial resources are accumulated, which are accumulated in the state budget, as well as in extrabudgetary funds. Therefore, the nature and functions of taxes will always be a relevant topic.
The current taxation is based on 15 social laws, as well as a law on the budget and tax code.
The taxes themselves are nothing more than the payments and fees that the state levies on legal entities and individuals to budgets and extra-budgetary funds at a rate fixed by law. Taxes can also be defined as a flexible tool for influencing an economy in constant motion. It is with tax systems effective containment and promotion of certain activities becomes possible.
The functions of taxes and fees allow you to adjust the development of various industries, bring solvent demand into balance, have a competent impact on the economic activities of entrepreneurs and regulate the amount of money in circulation.
What does the tax system of the Russian Federation look like?
Taxation in Russia can be displayed through the following structure:
- earmarked contributions to 15 extrabudgetary state funds;
- tax control and methods for calculating taxes;
- the totality of fees, duties, taxes and other payments that are levied on the territory of the country in the manner prescribed by law;
- competence of public authorities in the field of tax regulation and methods of their interaction.
The principles of system formation
When the tax system is being formed, certain principles are used as the basis and guideline:
- Taxes are divided by level of exemption.
- Mandatory availability of a mechanism that will block the possibility of double taxation.
- A competent combination of flexibility and stability of the tax system, necessary to ensure compliance with the economic interests of participants in social production. At the same time, stability should be observed in the rules for the implementation of taxes. We are talking about rates, elements and types of the system, which are extremely rarely adjusted when changing economic conditions.
- Studying the functions of the tax system, it is worth noting such a principle of its formation as a single level of rates for all enterprises. If different organizations record equal income under the same conditions for their receipt, then they should be subject to the same taxes.
- The structure of the tax system should be comprehensive and combine various types of fees and charges.
- Without fail, in the process of creating a taxation system, principles such as form comfort, economy, uniformity, accuracy and the absence of excessive pressure should be implemented.
- The single tax rate should be supplemented by a competent system of benefits that are targeted and targeted in nature, related to environmental protection, stimulation of scientific and technical progress and social sphere.
If you evaluate taxes by the method of collection, they can be divided into indirect and direct.
Indirect are established in the form of surcharges to the price of tariffs for services (customs duties, excise taxes, VAT) or prices of goods. The functions of taxes of this type boil down to stimulate enterprises, withhold the amount of tax from other payers and hand over these funds subsequently to the financial department.
Direct taxes are levied directly on property and income of payers. The subject of the tax may be the income of entities (interest, salary, profit) and the value of property (fixed assets, land, etc.).
Social function of taxes
In this case, it makes sense to talk about such a problem as distribution. This direction of impact expresses the socio-economic essence of the taxation system, which plays the role of a distribution tool that allows solving a number of urgent tasks that are beyond the limits of market self-regulation.
It is the functions of the tax system that are a means of solving such problems. Their influence makes it possible to redistribute the social product among various categories of the population. At the same time, an important goal is achieved - stability is maintained and social inequality in society is reduced.
The effects of the tax system should be considered in more detail:
- The share of indirect taxation is increasing. In other words, there is a greater taxation of those categories of entities that have a significant amount of consumption.
- Cumulative and compensatory social payments are used (in the Russian Federation this is UST), which allow shifting the burden of paying tax to the employer.
- The functions of federal taxes also mean the use of a progressive taxation scale for income falling into the personal category. This means that progression is realized by type: more income - higher tax.
- Non-taxable minimums, oriented benefits, various deductions, tax cuts and tax exemptions apply. As an example, exemption from taxation of essential goods (sometimes there is a reduction in rates).
- The use of increased duties and excise taxes on luxury goods and goods is not essential.
The implementation of the distribution function can also occur through individual tax-free. This means that low-income segments of the population pay at minimum rates or are completely exempt from tax, and legally. Moreover, such citizens have access to a tangible volume of services financed by the state (education, social protection, healthcare). Moreover, this funding comes from those tax deductions made by more affluent entities and various organizations.
Fiscal function of taxes
This function can be defined as the main one, since it reflects the very essence and mission of taxation. We are talking about the seizure of part of the income of citizens and companies in favor of the state budget. The purpose of such fees is extremely logical - the formation of a material basis that will allow the state to fulfill its functional responsibilities.
The fiscal function can be traced in any tax system. Moreover, it will always be relevant, because with the growing position of the state in the social, economic, law enforcement and other areas there is an increase in costs. This, in turn, means that the proportion of the social product that is redistributed through the tax system is increasing.
According to the traditional view, the fiscal function of taxes is considered key, and all other areas are derived from it. But, of course, successful state policy cannot be built on one fiscal factor, therefore, an integrated approach is needed.
Regulatory influence
In this case, we are talking about such an aspect of the system as the economic function of taxes. Its main goal is to implement the tax policy of the state through the use of various mechanisms. In turn, this direction of influence of the state can be divided into reproductive, stimulating and destimulating subfunction of the tax system.
Speaking of stimulating subfunctions, it is worth understanding a number of measures aimed at supporting the development of certain economic processes. The implementation of such a strategy is carried out using a system of exemption and benefits. At the moment, the taxation system makes it possible to use a wide range of tax incentives for disabled enterprises, companies working in the agricultural sector, and those organizations that invest in charity and production.
The functions of the tax authorities, acting within the framework of the stimulating direction, are focused on the establishment of certain obstacles through the tax burden, for the development of specific economic processes. Such an impact may occur in the form of a tax on the export of capital, increased customs duties, increase in tax rates, excise tax, taxation of property, etc.
As for the reproduction area, the regulatory function of taxes in this case is focused on the accumulation of funds in order to restore resources that are actively exploited. The tools to implement this subfunction are payments for water, deductions for the reproduction of the mineral resource base, etc.
It is worth noting that the effect of the stimulating subfunction cannot be called significant, it is rather indirect. But in the case of a discouraging effect, the regulatory function of taxes has a radical effect. But with such a strategy, it is important to correctly calculate the tax burden, otherwise the production efficiency will decrease significantly, and the outflow of investments will occur due to high rates.
Control function
This system of measures is aimed at ensuring state control over the financial and economic activities of citizens and various organizations. The legitimacy of the sources of income and the direction of expenditures of the funds received also fall into the focus of attention in the implementation of this function of the tax authorities.
The very essence of such control can be described as follows: an assessment is made of the conformity of tax revenues and obligations. In other words, the completeness and timeliness of the fulfillment of its obligations by the taxpayer is checked.
The function of taxes is important in the framework of control, since it prevents the occurrence of non-payment and inhibits the development of the shadow sector of the economy. Moreover, the impact of this particular function has a tangible positive effect on increasing the level of efficiency of implementation of other areas of the tax system, and fiscal in the first place.
Through this function, financial flows are monitored and the need for reforms in the budget and tax system is determined.
Types of taxes by subject and principle of intended use
Certain taxes can have different effects on groups of economic agents. Moreover, if you determine them by subject, then two groups can be distinguished: local and central.
As for the Russian Federation, the three-level tax system is relevant for it:
- Federal taxes. They are set by the government. Crediting occurs directly to the federal budget.
- Regional taxes within the competence of the subjects of the federation.
- Local. They are installed and assembled by local authorities.
If we consider the functions of taxes through the prism of intended use, then we can distinguish such types of taxation as marked and unmarked. Labeling should be understood as the process of linking tax with a specific direction of spending. In this case, marked taxes are taxes that are oriented on the use of funds received solely for the purposes for which they were originally intended. Examples include payments to the Compulsory Health Insurance Fund or Pension.
Those taxes that do not imply an exact intended use are classified as unmarked. The advantage of this group is their ability to provide a flexible budget policy: funds received as a result of taxation can be spent in those areas that the government body considers relevant.
The system of tax functions involves the separation of taxation by the nature of withholding:
- progressive (with an increase in income, the share of tax increases);
- proportional (in this case, a change in the tax share does not occur, even if there is an increase in income);
- regressive (tax the rate decreases when the profit level falls).
Key Views
The system of tax functions is effective in the case when in the state the types of fees are correctly distributed. For example, in Russia, the key tool for regulating the state budget is the corporate income tax, which belongs to the federal group. At the same time, part of the funds received through these contributions is transferred to the budgets of the Russian regions.
Foreign and local legal entities, as well as their branches, can act as a payer of income tax. Taxes include income derived from the sale of fixed assets, products and services. Profit from non-operating operations is also taken into account.
As for income from activities such as securities transactions, gambling and intermediary services, the income in this case is allocated from gross profit, and taxation occurs at a different rate.
When studying the functions of taxes, as well as the types of taxation, it is worth paying attention to VAT (value added tax). This is an indirect scheme of taxation of goods and services. At the same time, it has an output tax (accrued on its own turnover) and an input tax (paid by suppliers).
It is important to note that practically everything is included in the taxable turnover: financial assistance from other organizations, the cost of services, work, products sold, export advances, barter transactions, enterprise losses, interest received from the recovery of fines and penalties, and even interest for money provided on credit.
At the same time, the state established a list of revolutions that are not taxable. In this case, the functions of taxes have a supporting effect on the activities of medical production workshops at neuropsychiatric and psychiatric institutions, as well as public organizations of persons with disabilities. This means that products or services that such workshops have produced are not subject to value added tax.
There are also excise taxes, which are indirect taxes. They are included in the price of the goods. This type of tax is relevant for products such as natural wine, champagne, cognac, alcoholic beverages and various alcoholic beverages, as well as jewelry, tobacco products, gasoline and cars. Rates in this case remain the same throughout the Russian Federation.
As object of taxation fixed assets, stocks, costs, intangible assets that are on the balance sheet of the company can be determined.
findings
The final thought can be formulated as follows: the tax system, the functions of taxes and their essence are aimed at the competent implementation of state policy, the result of which is the stimulation of production and the regulation of economic processes.
