The notion and the essence of taxes and taxation. Functions of taxes

Abstract

Purpose The purpose of the study is to investigate available interpretations of the notion and the essence of taxes and taxation and to represent the comprehensive one, as well as to reveal the relation between competitiveness and successful performance of the tax system. Methodology The methodology unit to proof a hypothesis under suggestion is based on the methods of regression and correlation analysis that allows making a model of pair linear regression and calculating the correlation of the world tax systems competitiveness and values of their successful performance. The study is conducted on the data of the end of 2017–the beginning of 2018. To ensure the representativeness of the research outcomes, we use the countries located in different regions of the world with different level and rate of social and economic development as objects of the study. Results The analysis showed that regression and correlation dependencies between successful performance of the world tax systems and their competitiveness are low or moderate. Consequently, the relation between them is very weak or absent. Therefore scientifically, it’s more logical to define the competitiveness of the tax system not as its target property, but as one of the present system functions; it is expedient to consider their successful performance as the most important goal of this system. It makes possible to overcome the opposition of competitiveness of the tax system and its functions, and also give a fuller description. Therefore, we offer the following functions of the tax system: revenue, regulating, social, supervising, and the one providing the competitiveness of this system. Recommendations It is recommended to revise the methodological provisions and approaches to the theory of taxes and taxation and to upgrade empirical ones within the terms of this theory due to its clarified conceptual provisions.