1. Taxes and fees Functions of taxes Principles of taxation Tax benefits 2 Taxes and fees

2. Taxes and fees TaxesFees Only by law Has to be paid anyway In money form Get nothing back from government Get something back from government (permission, license, rights) Has to pay regularlyHas to pay non-regularly For providing a Government budget incomes For getting some rights \ permissions

3. Functions of taxes Fiscal function (State budget forming) Social function (fair distribution of economic values between people by progressive scale of taxation, big share of indirect taxation of customers with a huge demand, tax preferences) Control function (State control over business, people) Regulating function (State can manage national economy, different kinds of business, different industries) - stimulating (industrial, geographical) - de-stimulating (industrial, geographical) - self-investing (investments stimulating)

4. Principles of taxation Are main ideas, basics of taxation, Use everywhere (every industry, every region of the country) by same way Legal Can be changed only by law Can be economical, legal and organizational

5. Economical principles of taxation 1. Fair (pay tax only if You have a real income. ONLY INCOME? CASE STUDY – student and nurse, private clinic and nurse, student and nurse’s preferences) Lorenz curve 3 types of systems of taxation – progressive, regressive, neutral 2. Efficiency (tax – costs for taxation > 0) 3. Balance (Laffert curve) 4. Know-before (preventives)

6. Legal principles of taxation Total equality Legality (law supremacy) No “back-power” for tax laws, which increase tax burden of tax payer

7. Organizational principles of taxation Taxation unity Taxes elasticity (can be changed, corrected) Stability (in long-term) Tax sums distribution between State and municipals Transparency “Only once” principle

8. Legal base for taxation includes Core elements - Tax base (object for taxation, can be calculated by taxpayer or by State organs) - Tax payer - Tax period - Tax rate - Methodology for taxation (cumulative and non-cumulative) - Order and terms for tax paying (date, period, event, activity) Facultative elements - Tax preferences - Tax deduction - Tax Report (declaration) period - Tax receiver - Charges and penalties

9. Tax preferences (benefits, favors) Only legal Non individual (cant be for a certain taxpayer) Non discrimination Good will (taxpayer can use or can refuse to use it) No terms limitations

10. Forms of tax benefits Preferential tax regimes (special tax zones) Tax – free for some kinds of taxpayers (fully or partly) Tax immunity (for Royal families, religion institutes, arc and cultural organizations and so on) Exemption (withdrawal of some share from tax base) Tax deduction Tax rebate Tax payment delay Tax credit Tax break Also tax benefits can be national (State level), regional and municipal