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Essay on the final work

Contents

Introduction

Income tax is a part of the relationship of the economic entity with state and controlling authorities, and violations in this area can lead to significant consequences for the economic entity. The relevance of this topic due to insufficient development of theoretical and practical questions of the taxation of business profits in the current tax system and the existing problems in the mechanism of its calculation and payment. Income tax is one of the main revenue items of the budgets of most developed countries, including in the DNR budget. Due to the fact that the determination of profit in accordance with regulatory and legislative instruments, to separate, ie accounting profit may differ from the tax, there are differences - deferred tax assets and deferred tax liabilities.

At this time poorly understood the nature of tax differences and imperfections of their records, which often lead to contradictions in the definition of taxable and accounting profits, which negatively affects the reliability and validity of formation of tax expenses and contributions on them in the budget. For this reason, in practice, often the situation arises when the income tax Declaration exceeds the entire accounting profit before tax, which is contrary to any economic logic. As a result, enterprises completely lose their own funds for expanded reproduction, which negatively affects their financial status. Despite the considerable contribution of scientists in the field of taxation of profits, some theoretical and practical aspects of accounting of income tax are insufficiently studied and require further consideration.

the

1. The relevance of the topic

Tax on profit of organizations is an important component of the Republican budget of the DND. This is a direct tax, the value of which depends on the result of financial activities of enterprises during the reporting period. From the point of view of tax regulations, this tax may stimulate the growth of production and to brake it when bad construction of the tax system. From the taxpayer's income tax is the most consumable and hard to count tax, since the tax base includes virtually all processes of economic life of the enterprise. The problem of tax regulation of income tax in terms of economic instability is one of the most important for the state, especially in the conditions of formation of the tax system, when the legislator should take a responsible approach to tax regulation, eliminating conflicting language, embedding the new requirements into the existing system. Based on the foregoing, matters relating to tax on profits of enterprises, are relevant.

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2. The purpose and research tasks, planned results

the Purpose of the study is to identify gaps and inconsistencies in the accounting and tax accounting of profit tax, tax law, and developing specific recommendations for its improvement. The main objectives of the study:

    the
  1. analysis of the theoretical and methodological foundations of accounting profit tax. the
  2. consideration of the regulatory accounting of income tax. the
  3. the Study of reflection of operations in accounting of income tax.

    the consideration of the taxation the profit tax of the enterprises of the DNI. the

  4. Identify gaps and develop recommendations for improving the accounting of income tax.

Object of study: financial - economic activity of the enterprise of the DNI.

the Subject of the study is a set of theoretical, methodological and practical aspects of accounting of income tax. Practical significance of work consists that the results of the study can be used in the accounting reform of the profit tax of the enterprises in the DPR.The theoretical importance of work consists in improvement of methodology of accounting of income tax.

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3. Overview of research and development

a Great contribution to the study of problems of the accounting of profit tax made by such scholars as V. A. Gavrilenko,[1] V. Y. Zadorozhnyuk,[2] L. A. Leonov[3] S. F. Golov,[4] V. N. Parkhomenko,[5] M. A. Trojan,[6] V. V. Avdeev,[7] A. S. Krivova,[8] I. A. Sexton,[9] Y. S. shorohova,[10].

Despite the scope of challenges and significant contributions of scientists in the development of the theory and practice of accounting for the income tax, many challenges remain methodological, organizational and practical issues that require immediate resolution.

At the moment, poorly studied the nature of tax differences and the imperfection of their registration, often leads to contradictions in the definition of taxable and accounting profits, which negatively affects the reliability and validity of the definition of tax expenses and contributions on them in the budget. For this reason, in practice, often the situation arises when the income tax Declaration exceeds the entire accounting profit before tax, which is contrary to any economic logic. As a result, enterprises completely lose their own funds for expanded reproduction, which negatively affects their financial status. Despite the considerable contribution of scientists in the field of taxation of profits, some theoretical and practical aspects of accounting of income tax are insufficiently studied and require further consideration.

In General, the tax system DNI partly solves the problem of early acting Ukrainian tax legislation, improve it, and however imposes severe restrictions caused by the economic instability in the country and the need to fill the budget. With the development of economy, most likely, the restrictions will be reduced and the level of loyalty to the taxpayers will increase.

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4. Economic substance and tax profit

income Tax is part of tax system of the state and serves as a tool of redistribution of the national income. This is a direct tax, i.e. it is the final amount depends entirely on the final financial result of economic activity of enterprises and organizations. Income tax as a direct tax must perform their main functional purpose - to ensure the stability of the investment processes in the sphere of production (goods, services) and legal capacity of capital. The fiscal function of the tax on profit is secondary. The tax scheme it is defined as national taxes, distributed in proportion according to two levels of the budget in accordance with the legislative acts on the national budget for each financial year. Consequently, income tax and regulatory tax. Payment of income tax accompanied by the need of the taxpayers additional tax accounting as established by the DNR Law "On tax system" the order of grouping and accounting of separate objects and economic operations for tax purposes differs from the order existing in accounting. The collection of income tax is carried out according to the 12th Chapter of the DNR Law "On tax system", and explains the Methodical recommendations of the Ministry of revenues and duties DND.

In tax accounting, taxable profit is the sum of gross income of the reporting period reduced by the amount of gross expenses of the reporting period, taking into account the rules established by the DNR Law "On tax system".[11]

This method of calculating the taxable base for tax on profit has led to the emergence of various profit indicators in accounting and tax accounting. In accounting it is a measure of profit calculated by the rules of such accounting, and to determine the profit subject to taxation, it has become necessary to keep so-called tax accounting that enables to determine the real basis of the profit tax of the enterprises. In accounting for the amount of the tax difference adjusted financial result in accounting to go out on a profit tax in tax accounting. In accordance with P(s)BU 17 "income Tax", under temporary difference refers to the difference between the valuation of an asset or liability according to the financial statements and the tax base of the asset or liability, respectively.[12]

Such differences can be quite a lot, and they are manifested differently in the formation of taxable profit and tax on it. Some differences lead to the overstatement of taxable profits in the current period and are subject to their subtraction in future periods, others understate taxable income in the current period and therefore are subject to taxation in future periods.

this raises deferred income taxes in deferred tax assets and deferred tax liabilities are determined by multiplying the appropriate temporary differences (subject to subtraction and taxation) on the rate of income tax.

In accordance with P(s)BU 17 "income Tax" the deferred tax asset is the amount of profit tax subject to reimbursement in future periods, which is in accordance with the time difference to be subtraction; for deferred tax liabilities refers to the amount of income tax that will be payable in the following periods from temporary differences subject to taxation.

a Comparative analysis of accounting standards showed that the definition of a temporary tax difference, there is an obvious inaccuracy, as in pricing the asset can be used the actual cost, fair value, salvage value, book value. More precisely the definition in IAS: the time difference is the difference between the carrying amount of an asset or liability in the balance sheet and their tax value.[13]

because of occurrence of tax differences and accounting for them in accounting, significantly distorted the report on financial results with all negative consequences. As mentioned by Gavrilenko V. A., it is not correct in the financial statements to reflect tax differences (i.e., SHE, and IT) in the collapsed form, as stated in P(s)BU 17 "income Tax" because it is unreasonable and impractical in accounting, since, on the one hand, the financial documents will not be visible dynamics of specific amounts SHE, and IT, and on the other hand, minimized, balances itself, is reflected in the tax expenses of the account 79 "Financial results". It is also important that taken to account temporary differences basic requirements: firstly, that they must have savanorola in the future ie we had for this source of coverage, and the second strictly met their definition is given in P(s)BU 17 "income Tax"

  1. temporary difference - the difference between the valuation of an asset or liability according to the financial statements and the tax base of the asset or liability, respectively; the
  2. temporary difference deductible temporary tax difference reduces tax income (increase tax losses) in future periods; the
  3. temporary difference taxable temporary difference tax, which is included in the tax profit (loss) in future periods.

These conditions especially relate to temporary differences on fixed assets , because in accounting, the cost of repairs will always exceed its tax base, and they can never be fully depreciated, and therefore this difference is permanent and not temporary.[14]

Parkhomenko V. N. indicates the illegality of the tax assessment on temporary differences. He believes that charging a tax on these differences, the state removes from the turnover of large sums of money, which they desperately need. For this, businesses get into financial distress, as they, due to the lack of current accounts the necessary funds are forced to take loans from banks with high interest rate. On the other hand, unprofitable enterprises can be profitable. This can occur in such a situation when expenses on profit tax will have a negative value. And then all such costs to be reflected in the income tax. If the income tax on the profit will exceed the loss of the enterprise before tax, there is a net profit. In this case, the net profit derived solely on the basis of the manipulation of deferred tax assets and liabilities, that is, there is a distortion of the net profits or uncovered losses .[15] He proposes to abolish the taxation of temporary differences, especially for marginal businesses, and calculate the tax within the prescribed percentage in relation to the regulatory returns, which is defined as the product of the actual volume of sales and normative profitability. Goals C. F. in his writings reveals the inconsistency of the accounting and tax reporting due to the autonomy of the accounting and tax calculations for financial results.[16]

Thus, the mechanism of profit taxation of enterprises is governed by the provisions of the DNR Law "On tax system". The introduction of this legislation led to substantial changes in the taxation of profits of enterprises, but at the moment the Law about IT and SHE said nothing, therefore, some enterprises are two of the accounting (tax and accounting), and others manually adjust the accounting financial result by the amount of tax differences.

Calculation of the profit tax payable to the budget

Figure 1 – Calculation of income tax payable to the budget
(animation: 7 frames with repetitions, 15,3 KB)

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Conclusions

In this work was investigated the economic essence of income tax and tax difference in buhgalterskom account, we consider the legal regulation, considered the tax difference , and also features of accounting of income tax. Thus, the income tax is a direct tax, the amount of which depends on the final financial activity of the enterprises of any form of ownership, that is, the tax depends on the profits of the enterprise that it has received for a specific tax period under the profit (subject to tax) of the enterprise means the difference between its revenues and expenses for the reporting period.

studies have shown, a drawback of the present system of conducting accounting at the enterprises is the existence of a parallel ongoing accounting and tax accounting. One of the main shortcomings of the legislation, which reglamentary accounting, and tax, is economically unjustified differences regarding the recognition of revenues and costs that prevents the proper and simple definition of taxation objects by the tax on profit.

At the moment, poorly studied the nature of tax differences. The imperfection of accounting often leads to contradictions in the definition of taxable and accounting profits, which negatively affects the reliability and validity of the definition of tax expenses and contributions on them in the budget. For this reason, in practice, often the situation arises when the income tax Declaration exceeds the entire accounting profit before tax, which is contrary to any economic logic. As a result, enterprises completely lose their own funds for expanded reproduction, which negatively affects their financial status. The main reason for the occurrence of different financial results is the inconsistency of tax and accounting base in determining the tax expense on profit, requiring them to a common basis excluding such contradictions.

When writing this abstract master's work is not yet complete. Final completion: summer 2018. Full text works and materials on the subject can be obtained from author or his supervisor after the specified date.

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