Taxes are a complex and multifaceted concept that includes at least three entities: economic, legal and social. It is the social essence of the tax that should underlie everything. The main principles of taxation are based on them.
The principles of taxation are the basic ideas and provisions defining the main directions of the state policy in the sphere of financial (tax) activity and fixed by the norms of law.
The principles of taxation are of great importance for the tax system, as they determine its configuration and content. When creating tax law, the legislator should always take into account the principles of taxation.
Thanks to the experience of taxation in most countries of the world, as well as the achievements of foreign and domestic financial and legal science, the following principles have been formed on which the practice is based: legality, justice, tax solvency, universality, certainty, legal equality of taxpayers, convenience of taxpayers in paying taxes, stability of legislation and others.
The principle of justice is a form of state behavior, which is determined by equal treatment of tax obligations and rights of all citizens and organizations, in addition, tax obligations are imposed equally on their citizens and other people. Since this principle can be called moral-legal, in some countries it has been enshrined at the constitutional level.
In the system of principles of taxation this principle can be called basic, it includes the following elements:
Every citizen is obliged to pay for the work of his state, as he and his property are under his protection. This understanding of tax dates back to ancient times and was the basis for the economic activity of any state.
As an unconditional requirement of the state to each person (physical, legal), who has a certain income and property, when a citizen evades paying tax, he not only violates the economic rights of the state, but also the interests of other citizens, as such evasion leads to the need to increase tax rates and impose additional obligations on bona fide taxpayers.
Every citizen is obliged to pay for the work of his state, as he and his property are under his protection. In some countries, benefits are recognized for certain categories of taxpayers and include the possibility of not paying tax or paying less. Citizens are exempted from tax on the basis of unemployment, pregnancy and maternity benefits. Without this element, the principle of fair taxation is not complete. In addition, the State can solve false political problems by using tax breaks. This principle can be viewed on the one hand as a two-pronged one, one that is not only self-sufficient and has real content but also dominates other principles on a daily basis.
Second, the principle of fairness can be called the starting point for most other principles of taxation logically and legally derived from the principle of fairness and are its components.
In the modern world, this principle has undergone changes under the influence of economic, political and social conditions. Now it is divided into two aspects: "vertical justice" and "horizontal justice".
Horizontally, it means that, based on the broader principle of equality, a single assessment should be made, so that persons who are in an equal position and have received the same taxable income should pay tax at the same rates.
Vertically, it means that people who have different material capabilities should pay different shares of their income as taxes. Consequently, higher incomes should be subject to higher tax rates. This is aimed at redistributing income.
Taxes and levies should not be discriminatory and should not be applied differently on the basis of social, racial, national, religious or other similar criteria. It is not allowed to establish differentiated rates of taxes and fees, tax benefits depending on the form of ownership, citizenship of individuals and place of origin of capital.
Consolidation of the principle of fairness in the tax legislation will make the tax system more efficient, as well as contribute to increasing the authority of the authorities, political stability, and upbringing of a civilized taxpayer.
The principle of legality of taxation is the precise and steady implementation by all subjects of law of the regulatory requirements of the current tax legislation. It is one of the oldest principles of taxation. Logically and legally it follows from the principle of justice.
In principle, the legality of taxation is distinguished by two components. The first one is the observance by the legislator during the development and adoption of the tax.