taxation

Social Development and Taxation: Correlation and Interdependence

Introduction. Social orientation of Russia means that it is the state’s responsibility to provide an efficient system of social welfare and state guarantees as well as establish proper legal regulation of the social sphere. Thus, it is especially important to conduct research aimed at revealing the relationship and interdependence between social policy and taxation. Theoretical analysis. The article presents and proves a hypothesis that there is a direct correlation between the level of social development and taxation system efficiency. The author suggests an original methodology for calculating taxes for companies and organizations involved in the social sector or providing social services. Empirical analysis. The hypothesis of tax incentives as the most relevant and effective way to support socially significant social sphere in Russia. According to the author, this problem can be solved by implementing a policy of low taxes, flexible changes in the level of tax burden and individual tax rates in the pre-specified range, the wider use of tax incentives system. Results. The paper clarifies the content of the concept of «social services»; reveals the necessity of legal and regulatory definition of «socially important sphere» and establishing a normative body of rules governing financial relations arising in the social sphere; presents an original approach to the interpretation of the concept of «social sphere» and regulation of the social sphere from the perspective of financial resources allocation; clarifies the definition of social sphere and social organizations providing social services; identifies the role of tax incentives in the development of the social sphere; and develops an institutional approach to the description of the correlation between the development of social sphere and taxation by expanding the range of infrastructural elements of the social sphere and taxation system.

Taxation in the Perfomance Options Contracts as Financial Instruments of Futures Contracts

At present the legislation does not always have time to respond to the needs of modern business, the constant development and improvement of relations between subjects necessarily entails the formation of new types of relations, requiring detailed legal regulation. Purpose. Analyze the taxation of option transactions, depending on their types and participants. To investigate the levying of tax on profit of organizations and tax on added value when executing option transactions, as well as the use of incentives in the taxation of these transactions. Results. Based on carried out analysis it is established that for tax purposes payments on option contracts must be reasonable, and the award be included in the income of a taxpayer, regardless of the qualification of such transaction as a financial instrument. Moreover, it is established that the levying of value added tax shall be only part of an option recognized by the implementation. Identified the need to consolidate at the legislative level the criteria of option contracts for transactions subject to taxation, with the definition of the procedure for calculating and paying tax. Conclusion. Reveals the notion and the kinds of option transactions, are shown their new designs, causing the need for improving the tax treatment of such transactions.