UKRAINE'S TAXATION SYSTEM: A RETROSPECTIVE ANALYSIS OF DEVELOPMENT

Abstract

The search for directions of economic growth of the country is impossible without analyzing and disclosing the problematic aspects of the institutional development of its tax system. Therefore, a retrospective review of key trends in the development of the taxation system in Ukraine is relevant, which determined the purpose of this study. On the basis of the historical approach the legislative and other normative-legal maintenance of the taxation system for the whole period of its formation is analyzed – from the date of gaining of independence of Ukraine till today. It is proved that numerous normative innovations of the first decade (1990–2000) were economically irrational, unsystematic due to the lack of a single sound concept of tax system development, and approaches to taxation were the biggest burden on domestic business, which led to the shadow economy. Over the next decade (2000-2010), the mechanism for managing the tax system will be modernized by reforming the structure of tax authorities. New stages of development of the taxation system in the direction of its harmonization, adaptation to European requirements began with the introduction of the Tax Code of Ukraine and in connection with the implementation of the Strategy for the development of public financial management (2010–2013; 2013–2017; 2017; 2020). However, in general, Ukraine's tax system still cannot be called effective. Most tax innovations are purely fiscal and declarative in nature due to exclusion from participation in public and business reform. For society, the tax system has not yet become simple, economically sound and fair, despite the positive changes that lead to the improvement of the tax system, increasing its effectiveness at the present stage of development. In addition, the state has not yet developed a comprehensive approach to the mechanism of measures aimed at reducing corruption in the field of taxation. Summing up, we note that the retrospective analysis allowed to identify the main problematic aspects of the domestic taxation system and to determine further scientific research in the direction of improving the theoretical and methodological and applied principles of the taxation system, determining the mechanism of its effectiveness.