Tax minimization: current state and ways to solve it

Abstract

This article deals with the issue of tax minimization. Currently, tax minimization is an acute problem of the Ukrainian business environment. In order to fulfill the main purpose of the study, the following tasks were identified and performed: defining the essence of the concept of tax minimization; classification of schemes for minimizing tax liabilities; study of approaches to tax minimization; synthesis of ways to solve tax minimization. Saving on taxes is a crucial issue for all businesses. Therefore, in practice, proper tax accounting, planning and tax management ensure that companies pay the minimum amount of taxes. Proper optimization of tax payments is an important factor in the process of generating company profits, and tax evasion can lead to sanctions from fiscal authorities and unsatisfactory financial condition. The research clearly characterized the difference between tax minimization and optimization. It was clearly shown that minimization is a broader concept. Also, in the course of the work, some tax minimization schemes were analyzed and presented to fulfill the main tasks. The impact of tax minimization on the economies of countries was studied and summarized, in particular, the example of Sri Lanka was given. At present, due to the military invasion of the Russian Federation, the Ukrainian government has begun to change the tax system of our country. At first, a number of exemptions were introduced to stimulate economic activity of business entities, and then the system began to change towards more stringent taxation to cover primarily the state's external obligations. At the end of the article, the study synthesizes the following ways of solving tax minimization: improving legislation, increasing control, raising awareness, and using technology. The work is of practical importance for scientists, entrepreneurs and employees of fiscal services.