Global database on tax expenditures: reporting requirements and progress by countries

Abstract

Introduction. The Global Tax Expenditure Database remains the largest of the implemented initiatives to highlight information on tax expenditures in an international aspect. Problem Statement.Taking measures to improve, both quantitatively and qualitatively, the state of reporting provided by many countries to the Global Tax Expenditure Database remains necessary. This also applies to tax expenditure reporting for Ukraine, despite the relatively long experience in its preparation. Purpose. To determine the peculiarities of formation and classification of information in the Global Tax Expenditure Database and to assess the state of reporting to this database by Ukraine. Methods. General scientific and special research methods were used: description, comparison, grouping, theoretical generalization, critical analysis. Results. A detailed study of the peculiarities of reporting information in the Global Tax Expenditure Database shows that it is clearly structured and regulated. It is established that although the GTED reports emphasize the need for greater disclosure by countries of information on the list of tax expenditures in the context of all major taxes applied at the central level, the regulation of the volume of information provided still remains the prerogative of the country. The key requirement in the GTED remains its regular submission within the framework of reporting that is formed by the country. In this context, reporting on tax expenditures in Ukraine should be revised. Conclusions. The proposals for improving the state of reporting provided by Ukraine to the Global Tax Expenditures Database are given: coordination of the reporting information prepared by the country to the specified database with the one intended for internal use, in particular, information on the purpose of the applied tax expenditures and their beneficiaries; ensuring the addition and updating of data on the estimates of the list of tax expenditure items presented in the report; clarification and consideration of the criteria for which additional information should be provided to the database.