Now the most advanced integration Union is the European Union, the main forerunner of which European economic community was created in 1957 by the Task that stands today in the EU during the agenda - formation and strengthening of economic, monetary and political Union of member countries. Integration in the EU affects almost all aspects of relations between member States of the European Union - politics, Economics, social and cultural sphere.
The relevance of the study due to the importance and special role of tax harmonization in the framework of deepening European economic integration, the development of the unified internal market of the European Union, the formation of the EU economic and monetary Union.
The study objectives, taking into account the above, is the definition of tax harmonization and the justification aware of the need for integration on the Mature stages of its development, identification and analysis of factors that influence the process of tax harmonization in the EU, analysis of practical policies of States and supranational bodies of the European Union on the implementation of the measures of tax harmonization, and even issues arising in the process of convergence of tax systems of European Union countries.
The research is presented in the following:
the concept of tax, for distribution to the States, methods of collection of taxes, the types of tax systems
the concept of integration and harmonization.
studied two models of macroeconomic development NEs–neo-liberal and social market
the problem of EU funding
the structure of the tax systems of the major EU member States
conducted characterization of direct and indirect taxes in the countries-EU members
the necessity of tax harmonization of the member countries of the EU, shows the effect on competition in the market of integration Association
as a result of the comparative analysis of the tax systems of the countries-EU members, it was concluded that each of these countries has its own capabilities of adapting to the requirements of tax harmonization within the EU; all member States of the European Union can be divided into two groups according to the criterion of a relatively smaller or larger costs of adaptation;
with regard to the consideration of tax harmonization in the conclusion about necessity of reforming of the tax legislation of member countries of the European Union EU. (Jonung and Larch, 2004)
The problem with taxes is one of the most complex and controversial in the world of reference of the national economy, because taxes are the main source of budget revenues and, consequently, the financing of social and other state programs. Taxes are the main source of state revenues, but one of the main levers of the state's economy. Therefore, an effective taxation system is one of the most important tasks of each country.
The main elements of taxation are the taxes. They represent compulsory payments levied by the state with legal and physical to meet the social needs. Tax is a fee imposed by the state and is taken based on legislated rules meet the needs of society. Taxes associated with the prolonged existence of the state. It identifies social needs in particular and its structure. (Hallerberg, Strauch and Hagen, 2009) Therefore, the role of taxes is secondary.
Taxes are one of the basic concepts of financial science. The complexity of understanding the tax nature is because the tax is simultaneously economic, business and legal phenomenon in real life.
Taxes may be levied in the following ways:
1) Cadastral - to a tax differentiated into groups according to certain parameters. A list of these groups and their characteristics are recorded in special dictionaries. For each group, the individual tax rate. This method is characterized by the fact that the amount of tax depends on the profitability of the object.
An example of such a tax can be tax for vehicle owners. He charged at the prescribed rate from vehicle power, regardless of whether you use the vehicle or idle.
2) Based on the declaration
Declaration is a document in which the taxpayer results in the calculation of income and tax with it. A characteristic feature of this method is that payment of tax is made after receipt of income-person receiving income. An example would be the income tax.
3) At the source
This tax is to generate income, and the recipient of the income it receives reduced by the amount of the tax. For example, there is an income tax. This tax is now paid by the enterprise or organization where the individual. That is before payment, for example, pay its amount is deducted tax and remitted to the budget. The rest is paid to the worker. (Tan, 2016)
Statutory collection of taxes, fees, principles of their construction and the methods of collection of forms a tax system. The tax system is the totality of taxes and obligatory payments in the state, and even of the principles, forms and methods of their establishment, change, cancellation, payment, collection, tax assessment and tax control. The tax system always appears as a system of institutions, organizations that deal with regulation of tax relations. In such instance, which is carried out by tax inspection or tax administration, time should appeal to all taxpayers. At the same time the tax system appears as a tax mechanism, in which the set of tools and methods of organizational and legal nature, aimed at execution of tax legislation. Through the tax mechanism provided the stability and targeting of the tax system, is fiscal policy. The tax system can be represented as a set of taxes, fees, duties and other payments required to be paid. Of the tax system in different countries differ from each other: the structure, set taxes, methods of taxation, tax rates, fiscal powers of the various levels of government, tax base, tax benefits. It makes sense, as tax systems have developed and continue to develop under the influence of different economic, political demands and social conditions. However, any tax system must meet the General requirements.
There are two types of tax system: regular and global. In the regular tax system all incomes received by the taxpayer, divided into parts schedule. Each of these parts is taxed in a special way. In the global tax system, all income of natural and legal persons is taxed the same way. Such a system facilitates tax calculations and makes it easier to plan the financial results. The global tax system is widely used in the Western States. (Taxation trends in the European Union, 2009)
Competition in the field of taxation existed in the case that people have the opportunity to reduce their tax burden by transferring capital and/or labor from jurisdictions with a large tax in the jurisdiction with low taxes. This migration disciplines wasteful government and a positive effect on the country that lower tax rates and friends carry out the reforms that would be growth. Tax competition, especially in the current global economy and the electoral processes help to convince many countries of the need for fiscal policy contributes to the development of the market. It is not surprising that countries with high taxes do not like tax competition; using international bureaucracies, particularly the European Union. As is evident from the foregoing examples and tables, the EU enlargement has contributed to increasing international tax competition in the region, dividing a single integrated group in the country got acquainted with the high level of tax burden (mostly old EU countries) and the States use the so-called tax dumping to attract foreign investment and skilled professionals It is noteworthy that it became the Irish experience in the implementation of effective fiscal policy in the style tenets of supply-side Economics is an example and develop a national tax strategy new member States. However, the "tax dumping" is characterized primarily by low rates of NP, and even certain benefits in individual income taxation, causing some damage to the whole Community, because it stimulates the single European economic space as fair, but harmful tax competition. The main difference of the latter consists in creating double standards for national fiscal policy, under which non-residents receive greater tax benefits than residents. Such circumstances push the national companies of countries with high level of taxes for relocation of labor-intensive production external trade jurisdiction, which exacerbates the situation on the labor market of the EU.
The injustice of "tax dumping" in that low tax rates, which used the new EU members, actually covered direct financial grants they receive from donor countries, the Community, the core of which are countries with a high taxation level. It turns out that by paying higher taxes, residents most old EU countries to the detriment of himself and Central of his government's support policy of low-tax jurisdictions, which leads to a distorted allocation of capital and labor in the framework of this economic grouping (in the case violated the principle of tax neutrality). Of course, it is possible to assume an objective need for international tax competition between the member countries of the EU, first left in unequal starting conditions of development. It is only through the use of fiscal levers for national economic system and a small peripheral economy keen to boost its development, attracting outside resources and factors of production. However, if a small Ireland, population 4 million, technically simple self-serious danger of the old EU countries from the point of view of migration of capital and labor tax reasons, all low-tax jurisdictions Community population (Ireland plus ten new EU members) is large enough and in terms of population (about 80 million), and the scale of the economy group which can exist as to absorb huge investment and create new jobs. (Eichengreen, Frieden and Hagen, 1995) Liberal modification of national tax systems, carried out unilaterally, in a fit of following country the General line of the international tax competition is causing serious damage to the financial systems of the States partners in the economic grouping, which worsens the conditions for the functioning and efficiency of the entire Community. That is why tax competition is not the best option for the convergence of national tax systems to a common space of economic interests.
Accordingly, as a result of EU enlargement, a new view must be the question of the continuation of the process of European tax harmonization (coordination). It is obvious that further harmonization of national tax legislations of the countries members of the EU, which provide for harmonization of methods of calculation of the tax base existing tax exemptions, alignment of rates of basic direct and indirect taxes. Closer cooperation of old and new EU member states in tax matters is becoming extremely relevant in terms of future increases in the number of states in the international Economic and monetary Union, a single currency which is the Euro. (Hallerberg, Strauch and Hagen, 2009)
Now the fiscal policies that have been implemented in the new EU member states constitutes a serious impediment to their participation in the fact that the leading EU economies such as Germany, France and Italy, which suffer from excessive taxation of petroleum refining and from "tax dumping" from new members of the EU could block a decision on the extension of the International monetary Union, with the future transfer of the new EU countries during the Euro. (Taxation trends in the European Union, 2009)
Now with the new proposals on the tactics of the European tax harmonization (coordination) made by Germany and France. These countries would like to add a process of tax harmonization democratic in nature, including relevant sections on the principles of the single fiscal policy of the EU new European Constitution. In particular, it envisages the adoption of joint solutions in the field of fiscal policy coordination in the EU by qualified majority of votes of the countries members of the Community with the abolition of the possibility of imposing other countries. Germany has also proposed to enter into agreements with new EU member States about a kind of "tax corridor" that would eliminate harmful tax competition in the EU. For this purpose it provides for fixation of minimum or maximum tax rates again, which started the EU countries that we were able to further reduce their views, and so moderate direct and indirect taxes.
On the other hand, the same example of Ireland, a few harmful tax practices can be a lesson in the new EU members. It is known that the reaction of Ireland to the EC claims, which accused the country on the methods of harmful tax competition, to abandon this "tax dumping", the unification of taxation of companies – both resident and nonresident. Instead of the previously existing differential rates of NP to ten times, and 32% apply a single rate of 12.5%.Thus, appealing demonstrates an experience of Ireland, the new EU countries could use a similar method of fair tax competition, in its taking part and during the European tax coordination. At the same time the number of affiliated countries joined the EU - with large budget deficits. Reduction (to bring them in line with the fiscal requirements of the EU and to ensure fiscal stability in General) needs a serious fiscal reform. The reduction of public expenditure, of course, is in contradiction with the growing needs or state funding. (Silva and Buček, 2014)
So, the new countries faced with the following dilemma: their fiscal system needs to meet the increased demand on public funding and at the same time, to ensure fiscal savings and even a reduction in public spending. Fiscal policy and especially taxation system, countries should be ready to solve the problems, without jeopardizing fiscal and macroeconomic stability. This requires reform and restructuring as the revenue and expenditure items of the national finance.
Comparative analysis of the systems and structures of taxation in acceding countries reveals a number of specific and structural features of these countries managed to uncover during this analysis depends on the relatively low share of direct taxes in total revenues against member States of the EU. Moreover, the existence of multiple deletions indicates that the real share of direct taxes in total revenues below the level that should exist considering the standard tax rates. Therefore, increasing the level of direct taxation should be one of the future directions for tax reforms in the acceding countries.
Some of the necessary reforms are fully consistent with the requirements of the harmonization of taxation systems of the EU and are mandatory for acceding countries. As noted, the principle of equivalence of taxes indicates the advisability of further harmonization of all taxes to combat negative cross-border effects, in the framework of economical. (Grauwe and Grauwe, 2016)
On the other hand, improving the uniformity of the tax systems of oil refining and increase in tax revenues norms, also need to improve regulatory stalking that today is much lower than in the EU. Ironically, current trends are reversed: the power of the main mass of affiliated countries has announced its intention to further reduce regulatory rates the NIR. Such measures, rather competition in the field of taxation (between countries and in the EU) and will help them achieve their long-term political goals.
This section shows analytical information indicates that the affiliated countries, there is a possibility of increasing revenues through taxation of consumption. At the same time, since the basic VAT rate is so high and further a further increase may have ceased to be the best way to achieve this. It is desirable to find alternative ways to increase government revenue without changing the existing base rates. One of the areas where opens a wide field of activities is the increase of efficiency of taxation. Low tax collection (especially in relation to such consumption taxes like VAT and excise duties) is one of the main factors limiting the overall tax revenue in the acceding countries. At the same time improving the situation in this area will require additional public investment to improve the functional capabilities of the tax authorities.
There are economic arguments in favor of convergence of VAT rates and the abolition of the end of all deletions, especially in anticipation of EU accession. The data confirm that the variation in tax rates of consumption between countries reduces their effectiveness undermined their neutrality and distorts the competition in product markets and consumption patterns. On the other hand, the results of a comparative analysis of individual countries showed that other conditions being equal; the multiplicity of VAT rates is usually accompanied by a smaller collection of this tax, which resulted in the total state spending.
The political objective of reducing the gap in tax rates of consumption and achieve further harmonization of taxation in the EU will remain for acceding countries is always relevant, and after the accession to the EU.
Bibliography
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Grauwe, P. and Grauwe, P. (2016). Economics of monetary union. 11th ed. [Oxford, England]: Oxford University Press.
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