Taxation in the Context of Economic Security: Opportunities and Technologies

The sustainability of the national economy is the main task of the macroeconomic policy of the state and an important condition for ensuring the economic security. This is expressed, first of all, in the formation of state policy aimed at supporting the national economy in a sustainable condition. The role of taxation in this process is most fully implemented through the regulatory function, which is the ability of taxation to coordinate, harmonize, organize, cooperate, and stratify social interaction and management.

Taxation also affects various components of the economic system, namely: pricing, volume and growth rates of social production, sectoral structure and directions of capital migration, technical level of production, scope of research, labor demand and supply, level of employment and wages, consumption model, distribution of income in society, its social and regional differentiation, and conditions of foreign economic activity.

The ability to self-development and progress involves the ability to choose state’s own development model, to carry out continuous modernization of production, effective investment and innovation policy, and to develop the intellectual and spiritual potential of the country.

Taking the above into account, it should be noted that taxation occupies a special place in the economic security system since it not only provides financial resources to almost all components of the economic security (financial, social, environmental, legal, etc.) but also is a tool of the impact on economic and social processes.

II. LITERATURE REVIEW

In the course of the interpretation of the essence and content of the tax security definition, it has been revealed that among scientists dominates the understanding of its economic and legal form, which should ensure the creation by the state of conditions allowing the interaction of the interests of the individual, business structures, and the state based on the principle of mutual responsibility of tax agents. Therefore, it is necessary to give a more meaningful and accurate definition of the tax security concepts developed by modern domestic and foreign scientists (Table I).

Table I. Interpretation of the essence of the tax security definition in the scientific literature

From Table I it is evident that scientists understand the tax security as a form of security, which should provide the appropriate conditions for interaction among the state, business entities, and individuals to achieve the principle of mutual responsibility of business entities. The complexity of the study of this term is that the authors define differently the characteristics of this category.

First, the tax security characterizes the status of protection of the taxpayers’ interests and those, who distribute the gross domestic product through the taxation system. Secondly, it is the ability of the system to perform its functions and to respond to any changes in a timely manner. Third, it is the ability to respond to risks and dangers, to eliminate, minimize, accept or ignore their impact on the participants of the tax security [8].

This concept is difficult to study, because, on the one hand, it characterizes a certain state of the system, which protects the interests of taxpayers and entities that are involved in the distribution of GDP through the taxation mechanism, while on the other hand, it is a certain characteristic of the system, which is able to ensure the timeliness of fulfillment of functions by the tax system, and adequately response to changes in the tax policy of the state under the influence of a combination of factors; the third point is the ability of the system to withstand risks and dangers, to optimize, and under certain conditions, to minimize their impact on all participants of the tax security.

III. METHODS

To solve the set goal, the method of expert survey was used that allowed determining the following main issues of the study:

1. generalizing expert opinions on the interpretation of the tax security concept;

2. defining the essence of the economic, social and legal nature of the existence of the national security.

3. identifying the main risks and threats to the tax security of the state.

Managers and senior management of travel agencies (22 experts in total) were involved in the expert survey.

During the expert survey, experts were asked to give their own interpretations of the tax security concept, to reveal the essence of the economic, social, and legal nature of the existence of tax security, as well as to characterize the main risks and threats posed to the tax security of the state.

The results of the expert survey were used to propose a generalized structural and logical scheme of tax security risk management (Fig. 1).

Fig. 1. Generalized structural and logical scheme of tax security risk management

IV. RESULTS AND ISCUSSION

A generalization of expert approaches to the tax security concept is given in Table II.