Nikitkova, Yu. O. On Optimization of Granting Tax Exemptions to Wealth Tax

Abstract: At the present new terms of taxation raise debate and therefore requires certain amendments to be made to the tax legislation. The present article deals with the problems that may arise in the process of granting preferences. Special attention is paid to the question about efficiency of tax exemptions. The author of the article describes a discriminatory nature of particular tax preferences granted by the federal government for wealth tax. Sometimes federal tax preferences allow companies to avoid paying taxes on legal grounds. This reduces budget revenues. The author of the article suggests that the tax legislation should be modernized in so far as it refers to tax exemptions. The author also suggests to improve the process of granting tax preferences for wealth tax as a new way to enhance the budgets and to set up goals for taxpayers who develop local economic activity. The whole process of granting tax preferences should be aimed at increasing local budget revenues and contribute to the development of particular regions. Only in this case granted preferences and exemptions would become efficient and economically important.

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