1. Taxes as an economic category. Functions of taxes. Taxes – obligatory monetary payments to the budget as established by the state through legislation in a unilateral procedure, except for the cases specified in this Code, which are paid in certain amounts, which are irrevocable and non-refundable. Economic signs of taxes are: monetary form; distinctness of the subject and object; taxes is a state revenue. The taxes are execute the main functions: Fiscal – provide the entrance of funds to the state budget, which is necessary for implementation of activity and the functions of the state. Social – redistribution of revenue of the various subjects of populations to the state favor. Control – ensure the control for fullness and timeliness of tax payment to the budget. Regulate – come to existence with the widening of economic activity of the state, used for the impact on economic and production processes. Stimulate – favour to the acceleration of technical process and rising of production.

2.Bases of construction taxes. Classical principles of the taxation of Adam Smith.

A good tax system is one which is designed on the basis of an appropiate set of principles.The tax system should strike a balance between the interest of the axpayer and that of tax authorities, Adam Smith was the first economist to develop a list of Canons of Taxation. These canons are still regarded as characteristics or features of a good tax system.

1.Principle of Equity. Yhe principle aims at providing economic and social justice to the people.According to this principle,every person should pay to the government depending upon his ability to pay.The rich class people should pay higher taxes to the government,because without the protection of the government authorities(Police,Defence) they could not have earned and enjoyed their income.Adam Smith argued that the taxes should be proportional to income,i.e.,citizens should pay the taxes in proportion to the revenue which they respectively enjoy under the protection of the state.

2.Principle of Certainty.According to A.S.,the tax which an individual has to pay should be certain,not arbitrary.The taxpayer should know in advance how much tax he has to pay,at what time he has to pay the tax,and in what formthe tax is to be paid to the government.In other words,every tax should satisfy the canon of certainty.At the same time a good tax system also ensures that the government is also certain about the amount that will be collected by the way of tax.

3.Principle of Convenience.The mode and timing of the tax payment should be as far as possible,convenient to the tax payers.For ex.,land revenue is collected at time of harvest income tax is deducted at source.Conenient tax system will encourage people to pay tax and will increase tax revenue.

4.Pr. of Economy.This pr. States that there should be economy in tax administration.The cost of tax collection should be lower than the amount of the tax collected.It may not serve any purpose,if the taxes imposed are widespread but are difficult to administer.Therefore,ot would make no sense to impose certain taxes,if it is difficult to administer.

3. Classification of taxes. In the tax system the taxes can classified by various signs. The most widespread is a classification on five signs: 1) from the object of taxation and attitude with the state budget: (direct; indirect); (example: individual income tax, property tax). 2) on economic signs (consumption tax, capital tax). 3) on degree of estimation of object (real and personal). 4) on the use (personal, special). 5) from agency, levied the taxes (taxes, which enter to the local budget and to the republican budget).

4.Principle of the taxation of a.Vagner.

German economist Adolf Wagner (1835-1917) in the late NINETEENTH century conceptually supplemented principles And. Smith. Smith believed taxes source of covering unproductive expenditure of the state and for defending the rights of taxpayers. Wagner was guided by the theory of collective needs and, therefore, of paramount importance to the financial principles of adequacy and elasticity of the tax. Principles of taxation represent a system which takes into account the interests and the taxpayers and the state, with the priority of the latter. Therefore, the financial science raised the question of the balance between the interests of the state and taxpayers.

A. Wagner offered nine basic rules, United in four groups:

1. Financial principles of the organization of taxation: the adequacy of the taxation;-elasticity (mobility) of taxation.

2. People's economic principles: is the proper choice of the source of taxation, i.e., in particular, the solution of the issue, should the tax falling on income or capital of an individual or population as a whole; the right combination of different taxes in such a system, which would consider the consequences and the conditions of their proposals.

3. Ethical principles, the principles of justice: universality of taxation; uniformity of taxation.

4. The administrative and technical rules or principles, the tax office: definiteness of taxation; the convenience of payment of the tax; maximum reduction of costs of withdraw.1

The state, no doubt, has the right to withdraw a part of property of a taxpayer for the formation of centralized funds and cash, respectively, for the implementation of public tasks and functions. However, the question arises of the extent of the tax burden. Here, obviously, should be achieved by an effective balance of public and private interests.

5. Kinds of tax rates and feature of their construction. Ways of collection of taxes. The tax rate shall be a measure of the tax liability for the assessment of tax and other obligatory payments to the budget per unit of measurement of the taxable item or tax base. There are 4 main tax rates: твердые (firm), пропорциональные (proportional), прогрессивные (progressive), регрессивные (regressive). По платежеспособности (solvency): direct (прямо взимаются с субъекта налога (подоходный налог с населения, подоходный налог с предприятий, корпораций, организаций, налоги в фонд соц. страхования и тд.) и indirect (налоги на определенные товары и услуги, взимаются через надбавку (extra charge) к цене: налог на добавленную стоимость (охватывает широкий диапазон продукции), акцизы (облагается относительно небольшой перечень избранных товаров), таможенные пошлины (duties). Ways of collection of taxes: 1) Declorational (where tax bearer specifies the size of income, deductions n charges the tax sum); 2) At the source payment. 3) Cadastral - the tax collection is carried out on basis of inventory of taxation with instructions of norms; 4) patent 5)single coupon.