Economics and management of enterprises

Tax risks estimation in the system of enterprises economic security

Economic Annals-XXI

Economic Annals-ХХI: Volume 158, Issue 3-4(2), Pages: 35-38

Citation information:
Poltorak, A., & Volosyuk, Yu. (2016). Tax risks estimation in the system of enterprises economic security. Economic Annals-XXI, 158(3-4(2)), 35-38. doi: https://doi.org/10.21003/ea.V158-08

View Full-TextDownload PDF

Anastasiya Poltorak
PhD (Economics),
Mykolaiv National University named after V. О. Sukhomlynskyi
24 Nikolska Str., Mykolaiv, 54030, Ukraine
poltorak_as@mail.ua

Yuriy Volosyuk
PhD (Technical Sciences),
Mykolayiv National Agrarian University
9 Paryzka Komuna Str., Mykolaiv, 54020, Ukraine
volosyuk@mnau.edu.ua

Tax risks estimation in the system of enterprises economic security

Abstract. Introduction. One of the aspects which characterises the quality and reasonableness of managerial decisions at the enterprises is the determination of their positions concerning the complex of risks in the field of entrepreneurship, including tax risks. In conditions of fast reforming of the Ukrainian taxation system and the valid legislative and regulatory framework, the potential for errors in the process of determination of tax bases and the incorrect definition of certain legislative standards increases. It contributes to the appearance of tax risks and acuminates the problem of their estimation in the system of economic security of enterprises.

Purpose. The purpose of the research is to analyse the specificity of tax risks, which makes it possible to single out this type of business risks into a separate group; generalise the major forms of tax risks with regard to business manifestations in the system of economic security of enterprises; estimate methods of calculation of indices relevant to the assessment of tax burden; introduce an algorithm of tax risk assessment regarding the schedule of planned audit at the enterprises.

Results. The article deals with the analysis of the term «tax risk of an enterprise», as well as its definition suggested by the authors. In this case, the term «tax risk of an enterprise» should be understood as the probability of changes in the financial position of an entity because of the impact of internal and external factors of an objective and subjective character on the system of tax planning of an enterprise. The authors have analysed the unique features of the tax risks, which makes it possible to single them out into a separate group of business risks, characterized by the deferment of realisation of tax risks applied to the decision-making process in the system of taxation; attribution of tax risks to the category of «pure risks»; the dual influence of tax risks which are not only a financial but also legislative category. The major forms of tax risks in the system of economic security include the discordance of decisions in the field of taxation to the requirements of current legislation; improper storage and processing of primary documentation; violation of terms of tax payment and application for regulatory authorities; technical errors in the process of taxing and accounting.

Conclusion. The authors have offered a four-index calculation method in the field of assessment of tax burden, including the specific size of taxes in the structure of gross incomes, pure incomes, pure current assets and financial results before the taxation for the purpose of detection of certain problems in the field of taxation and major tax risks of an enterprise. The algorithm of tax risk assessment relevant to the schedule of planned audit at the enterprises and application of the legally approved procedure of forming a plan-schedule of inspections has been introduced.

Keywords: Tax Risks; Tax Risks Assessment; Tax Burden; Economic Security; Taxes

JEL Classification: H25; H26; D81

DOI: https://doi.org/10.21003/ea.V158-08

References

  1. Doerrenberga, P., Duncanc, D., & Zeppenfelde, C. (2015). Circumstantial risk: Impact of future tax evasion and labor supply opportunities on risk exposure. Journal of Economic Behavior & Organization, 109, 85-100.
  2. Dhami, S., & Al-Nowaihi, A. (2010).Optimal taxation in the presence of tax evasion: Expected utility versus prospect theory. Journal of Economic Behavior & Organization, 75(2), 313-337.
    Retrieved from https://www.researchgate.net/publication/222675776_
    Optimal_taxation_in_the_presence_of_tax_evasion_Expected_utility_versus_prospect_theory
    doi: 10.1016/j.jebo.2010.03.004
  3. Minchung, Hsu, & Yang, C. C. (2013). Optimal linear and two-bracket income taxes with idiosyncratic earnings risk. Journal of Public Economics, 105, 58-71.
    Retrieved from https://www.researchgate.net/publication/270979758_
    Optimal_linear_and_two-bracket_income_taxes_with_idiosyncratic_earnings_risk
    doi: 10.1016/j.jpubeco.2013.06.006
  4. Kalamov, Z. (2013). Risk sharing and the efficiency of public good provision under tax competition. Regional Science and Urban Economics, 43(4), 676-683.
    Retrieved from https://www.researchgate.net/publication/256998813_
    Risk_sharing_and_the_efficiency_of_public_good_provision_under_tax_competition
    doi: 10.1016/j.regsciurbeco.2013.03.002
  5. Rossing, C. (2013). Tax strategy control: The case of transfer pricing tax risk management. Management Accounting Research, 24(2), 175-194.
    Retrieved from https://www.researchgate.net/publication/256055253_
    Tax_Strategy_Control_The_Case_of_Transfer_Pricing_Tax_Risk_Management
    doi: 10.1016/j.mar.2013.04.008
  6. Boschia, M., & Goenka, A. (2012). Relative risk aversion and the transmission of financial crises. Journal of Economic Dynamics and Control, 36(1), 85-99.
    Retrieved from https://www.researchgate.net/publication/259117405_
    Relative_Risk_Aversion_and_the_Transmission_of_Financial_Crises ­
    doi: 10.1016/j.jedc.2011.07.005
  7. Wei, L. (2009). Ruin probability in the presence of interest earnings and tax payments. Insurance: Mathematics and Economics, 45(1), 133-138.
    Retrieved from https://www.researchgate.net/publication/222709632_
    Ruin_probability_in_the_presence_of_interest_earnings_and_tax_payments
    doi: 10.1016/j.insmatheco.2009.05.004
  8. Wunder, H. (2009). Tax risk management and the multinational enterprise. Journal of International Accounting, Auditing and Taxation, 18(1), 14-28.
    Retrieved from https://www.researchgate.net/publication/247245480_
    Tax_risk_management_and_the_multinational_enterprise
    doi: 10.1016/j.intaccaudtax.2008.12.003
  9. Safonova, M. F., & Reznichenko, S. M. (2014). Analysis of the tax risk of organizations. Polimatematicheskiy setevoy elektronnyiy nauchnyiy zhurnal Kubanskogo gosudarstvennogo agrarnogo universiteta (Polythematic Online Scientific Journal of Kuban State Agrarian University), 101(07).
    Retrieved from http://ej.kubagro.ru/2014/07/pdf/107.pdf (in Rus.)
  10. Fomina, O., & Honcharenko, О. (2015). Enterprise’s risks assessment in accounting. Ekonomicnij Casopis-XXI (Economic Annals-XXI), 3-4(2), 67-70 (in Ukr.).
    Retrieved from https://ea21journal.world/index.php/ea-v150-16/
  11. Lisovskaya, I. (2011). Tax risks: definition, origin factors and management methods. Novyi universitet. Seriya «Ekonomika i pravo» (New University. Economics and Law), 1(1), 3-13 (in Rus.).
  12. Methods definitions and classification of tax risks.
    Retrieved from http://sta-sumy.gov.ua/modernizatsiya-dps-ukraini/povidomlenia_/2010-povidomlenia/59484.html (in Ukr.)
  13. The PwC (2016). Overall ranking and data tables.
    Retrieved from http://www.pwc.com/gx/en/services/tax/paying-taxes-2016/overall-ranking-and-data-tables.html
  14. The Verkhovna Rada of Ukraine (2010). Tax code of Ukraine.
    Retrieved from http://zakon5.rada.gov.ua/laws/show/2755-17 (in Ukr.)
  15. The Ministry of Finance of Ukraine (2015). The procedure of forming the plan- schedule of inspections of taxpayers.
    Retrieved from http://zakon5.rada.gov.ua/laws/show/z0751-15/page (in Ukr.)

Received 20.01.2016

View Full-TextDownload PDF
In, , , , , ,

More Papers