Vorozhbit O.Yu., Uksumenko A.A. Implementation of the Principle of Fair Taxation to Individual Property Tax

Abstract: Importance. Nowadays in terms of the tax reforms which are carried out in our country, continuous harmonization of the taxation, and diversification of the tax income of local budgets, the problem of the property taxation of natural persons gains special relevance. Objective. The purpose of the article is to study the structure of individual property tax and to evaluate whether the fundamental principles, particularly the principle of tax equity, are fully applied to the process of tax calculation. To fulfill this purpose, the following tasks have been set and solved: evolution of the property taxation in the modern taxation system is tracked; the basic design of individual property tax is presented; elements formed at the local level are considered based on the example of the city of Vladivostok, assessment of changes of the tax burden on individual property tax upon transition to calculation of tax proceeding from the cadastral project cost is given. Methods. In the course of their research the authors have used general scientific methods of analysis and synthesis as well as elements of the systems approach, case study, some results are received through the application of the method of focus groups. Results. In this article the classical principles of taxation are applied to analyzing the structure of individual property tax. Modeling of the basic structure of the tax is made and basic elements are described and divided into the two groups (federal level and local level). Comparison of tax burden during five fiscal periods in the process of transition to the new principles of tax calculation is carried out. Assessment of growth of tax burden taking into account characteristics of the standard object of real estate is given. Conclusions and Relevance. The conclusion that the effective structure of individual property tax with the basic elements of tax makes it impossible to apply the principle of tax equity. When developing the structure of tax, it is necessary to carry out an in-depth study of the question, provide for the economic justification of the effect of tax for the budget and make sure the principle of social justice is fulfilled. 

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