THE CONCEPT, NATURE AND LIMITS OF TAX PLANNING IN UKRAINE

Abstract

The present article is concerned with identifying the definition, essence, and boundaries of the tax planning. It is noted on the absence of the definition and mechanism of the tax planning in the Ukrainian legislation despite the global positive experience of determining the tax planning in the national legislation. It is emphasized on the indisputable right of the taxpayer to the tax planning. Attention is focused on the fact that not every taxpayer activity, based on the legitimate means, is aimed to reduce the amount of the tax debt can be named as the tax planning. There is also noted on the characteristics of the tax planning, according to which the tax planning activity does not change the essence of the business, its purpose; it should be an auxiliary tool to achieve business results, to support the operation and development of the economic entity as a whole. It is analyzed various scientific positions on the definition of the tax planning. It is noted that the essence of the tax planning activity is to use not only directly regulated by the law norms that provide the taxpayer with the opportunity to reduce the amount of its tax debt legally, but also the use of gaps in the legislation, regulations and opportunities that (although not expressly enshrined in laws or regulations) derived from the content the legislative framework, i.e. regulate tax relations indirectly. It is analyzed the difference between the tax optimization and the tax minimization. Attention is focused on the phenomenon of tax circumvention. The last one is defined as the formal observance of the law provisions by the taxpayer in carrying out its activities aimed at reducing the tax debt, but at the same time there is an infringement of the idea and principle of law. It is noted that each individual situation, in which there are doubts about its attribution to the tax planning or to circumvent tax should be the subject of litigation.