Uman NUH | today: 01/27/2023

Role of the corporate tax planning in the activity of business entities

Author(s) Nepochatenko Olena O., Doctor of Economics, Professor, Rector of Uman National University of Horticulture, Head of Department, Uman National University of Horticulture
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Barabash L.V., , , Uman National University of Horticulture, Ukraine
Category Economics
year 2019 issue Issue 94. Part 2
pages 95-108 index UDK 336.225
DOI 10.31395/2415-8240-2019-94-2-95-108 (Link)
Abstract Under market conditions and growing fiscal tendency of the taxation policy of the state the enterprises of Ukraine face the issue of optimization of their performance, in particular, through reducing the sum of tax payments. In this light, the tax planning becomes extremely important, being an integral part of the corporate as well as state tax management. Implementation of the corporate tax planning into the business activity of an enterprise requires the development of a certain conception aimed at increasing performance results through minimizing tax payments, resulting in the growth of enterprises income, in the prevention of tax violation risks and harmonization of the interests of the participants of tax relations. Corporate tax planning increases the range of real opportunities of an enterprise, minimizing actual risks of taxation, however, only in case of clear arrangement of this process in accordance with obligatory going through such stages as: analysis of tax problems, setting goals using methods and schemes of a corporate tax planning, simplifying the procedure of fulfillment of taxpayers liabilities and conducting tax monitoring. Existing tax legislation in Ukraine offers taxpayers the opportunities to implement corporate tax planning and to increase profitability by means of using legislated tax tools that promote this, such as: tax benefits, special regimes, free economic zones, elements of accounting, etc. All mentioned aspects are transferred into the system of corporate tax planning as items that optimize the performance of a business entity. In this case, it is important to define the ways of optimizing the performance on the part of taxation, using substantiation, the results of the individual tax consultancy as well as the explanations of tax authorities. Thus, the implementation the mechanisms of corporate tax planning into the performance of enterprises will promote not only the improvement of their performance, but also accumulating authentic schemes of optimization of the tax burden by minimizing tax payments on legal grounds.
Key words tax management, corporate tax planning, tax burden, tax regulation, fiscal function of taxes.
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