Home  Journals  Economic Analysis: Theory and Practice  11(410) - 2015 March

RETRACTED: Analysis of the efficiency of tax privileges and preferences in the mechanism of state support for investment activities of enterprises

Retraction reason: Plagiarism found.
The article retraction was innitiated by the journal editor.
Retraction date September 25, 2019

Vol. 14, Iss. 11, MARCH 2015

Article PDF Version

Available online: 15 March 2015

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: 

Pages: 13-25

The article deals with the analysis of the effectiveness of tax incentives and the study of their role in the mechanism of State support of investment activity of the enterprises. The authors are considering a set of tax breaks and preferences as part of the mechanism of tax regulation, which includes various forms and tools designed to help increase the profitability of the businesses, the growth of their own financial resources. The profits tax has the potential for regulatory impact on the speed, scale and directions of investment activity. Combined with the depreciation policy, this tax determines the sizes of their own financial resources of economic agents, which can be used for further growth, and eventually forms a substantial part of the investment capacity for the development of the economy. The paper reviews theoretical aspects of investment tax credits, the rules and regulations thereof. Investment tax credit is a construct, beneficial for both the State and the organizations, and it is of great economic importance. The principle of focus investment tax credits, in theory, is designed to support investment activities of organizations carrying out capital investments. The article concludes that the stimulation of investment activity by using fiscal instruments in the form of investment tax credits is, in fact, declarative, having no effect on investment activity in the field of capital investments. The authors identify the reasons why the use of investment tax credits is, in practice, difficult. The main of them is the unnecessarily complicated administrative procedure for application. The significance of tax incentives granted to organizations on regional and local property taxes in high subsidized budgets of the majority of subjects of the Russian Federation and municipal entities requires compensation, which can be in the form of set-off of amounts of tax incentives for donations passed to budgets in order to equalize fiscal capacity of regions and municipalities.

Keywords: tax incentives, preferences, corporate income tax, investment companies, investment tax credit, bonus depreciation, subsidization, subjects, mechanism, tax regulation

References:

1. Aliev B.Kh., Alimirzoeva M.G. Sotsial'no-ekonomicheskie parametry rossiiskikh regionov i perspektivy perekhoda k ustoichivomu razvitiyu [Socio-economic parameters of the Russian regions and the prospects for transition to sustainable development]. Regional'naya ekonomika: teoriya i praktika = Regional Economics: Theory and Practice, 2011, no. 25, pp. 41–45.
2. Aliev B.Kh., Musaeva Kh.M. K voprosu o razvitii nalogovogo federalizma v RF: problemy i perspektivy [The development of tax federalism in Russia: problems and prospects]. Finansy i kredit = Finance and Credit, 2009, no. 36, pp. 19–24.
3. Aliev B.Kh., El'darusheva M.D. Tendentsii investitsionnoi deyatel'nosti predpriyatii v sfere kapital'nykh vlozhenii i ee perspektivy v ekonomicheski slaborazvitykh regionakh [Trends of investment activity of the enterprises in the field of capital investment and its prospects in economically less-developed regions]. Regional'naya ekonomika: teoriya i praktika = Regional Economics: Theory and Practice, 2014, no. 37, pp. 22–28.
4. V Kaluzhskoi oblasti investoram predostavili l'goty po nalogu na pribyl' [The Kaluga region has provided investors with incentives for income tax]. Available at: Link. (In Russ.)
5. Kuz'menko V.V. Nalogovoe regulirovanie ekonomicheskogo razvitiya [Tax regulation of the economic development]. Stavropol, North-Caucasus State Technical University Publ., 2011, 189 p.
6. Kuz'menko V.V., Barinov V.M. Nalogovye instrumenty stimulirovaniya innovatsionnoi deyatel'nosti [Fiscal instruments to stimulate innovation]. Stavropol, North-Caucasus State Technical University Publ., 2011, 210 p.
7. Kuz'menko V.V., Golubev V.Yu. Nalogovoe stimulirovanie investitsionnoi aktivnosti v energeticheskom komplekse. V kn.: Sovershenstvovanie nalogooblozheniya kak faktor ekonomicheskogo rosta [Tax stimulation of investment activity in the energy sector In: Improvement of taxation as a factor of economic growth]. Stavropol, North-Caucasian Federal University, 2012, pp. 41–45.
8. Kuz'menko V.V., Petrov V.D. Sredstva i sposoby ukrepleniya nalogovoi distsipliny [Ways and means of strengthening the fiscal discipline]. Stavropol, North-Caucasus State Technical University Publ., 2011, 202 p.
9. Nalogi i nalogovaya sistema RF [Taxes and the tax system of the Russian Federation]. Moscow, YUNITI-DANA Publ., 2014, 439 p.
10. Nalogi i nalogooblozhenie. Palitra sovremennykh problem [Taxes and taxation. A palette of contemporary issues]. Moscow, YUNITI-DANA Publ., 2014, 375 p.
11. Nalogovye sistemy. Metodologiya razvitiya [Tax systems. The methodology of development]. Moscow, YUNITI-DANA Publ., 2012, 463 p.
12. Musaeva Kh.M. Nalogovye l'goty v rossiiskom zakonodatel'stve: sushchnost', formy, prioritety i effektivnost' [Tax incentives in the Russian legislation: the essence, forms, priorities, and effectiveness]. Finansy i kredit = Finance and Credit, 2013, no. 42, pp. 48–53.
13. Musaeva Kh.M. Regional'naya ekonomika kak ob"ekt byudzhetno-nalogovogo regulirovaniya na sovremennom etape RF [Regional economy as an object of fiscal regulation in the RF at the present stage]. Regional'nye problemy preobrazovaniya ekonomiki = Regional Issues of Economic Transformation, 2011, no. 4, pp. 22–30.
14. Musaeva Kh.M. Sobiraemost' nalogov i nerabotayushchie l'goty: opyt Dagestana [Tax collection and non-performing benefits: the experience of Dagestan]. Finansy = Finance, 2014, no. 6, pp. 13–17.
15. Raz"yasnenie o predostavlenii preferentsii v vide nalogovykh l'got [Clarification on the granting of preferences in the form of tax benefits]. Available at: Link. (In Russ.)
16. Suleimanov M.M. Nalogovye dokhody byudzhetov territorii i perspektivy ikh rosta [Tax revenue budgets of territories and their growth prospects]. Nalogi i finansovoe pravo = Taxes and Finance Law, 2012, no. 4, pp. 343–347.
17. Suleimanov M.M. Problemy i perspektivy formirovaniya effektivnoi modeli nalogovogo federalizma v Rossii [Problems and prospects of forming an effective model of tax federalism in Russia]. Finansy i kredit = Finance and Credit, 2013, no. 25, pp. 65–71.
18. Suleimanov M.M. Razvitie nalogovogo potentsiala byudzhetov territorii v usloviyakh modernizatsii rossiiskoi ekonomiki [Development of the tax potential of budgets of the territories in conditions of modernization of the Russian economy]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2011, no. 43, pp. 59–64.
19. Suleimanov M.M., Aliev B.Kh. Nalogovyi potentsial regiona: problemy i perspektivy rosta [The tax potential of regions: problems and prospects]. Finansy i kredit = Finance and Credit, 2011, no. 4, pp. 2–7.
20. Suleimanov M.M., Aliev B.Kh. Regional'naya nalogovaya politika v determinantakh protsessov detsentralizatsii [A regional tax policy in the determinants of decentralization processes]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2013, no. 40, pp. 47–52.

View all articles of issue

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 23, Iss. 4 April 2024

Archive