RISK-ORIENTED APPROACH IN THE SYSTEM TAX MANAGEMENT

Abstract

The article summarizes a domestic and international risk management practice in the tax management system of the taxpayer. The classification and conceptual tax risks basis are revealed: subject – the subject of economic activity which makes the decision on a choice of taxation system and provides its realization; object – the object of taxation in accordance with current tax legislation; source of risk – phenomena or processes that occur in uncertainty conditions. The main risk factors that affect tax management effectiveness of the taxpayer in today's business environment are presented. Based on the scientific and practical research study of domestic and foreign scientists and practitioners, the tax risks classification is systematized, which are the primary objects of management, such as identification, assessment, prevention of risk and control of their negative consequences. Approaches to both probabilistic and cost risk assessment in five main tax risk areas of domestic enterprises are proposed, namely: risk-free, minimal risk, high risk, critical risk, unacceptable (catastrophic) risk. To assess risk management effectiveness, the authors substantiate an implementing feasibility the FATF Recommendation on a risk-based approach using a specific results hierarchy within four possible performance ratings. Alternatively, cost assessment indicators for tax risks regulated by domestic regulations are proposed. On the basis of sociological research generalization (respondents of which were public joint-stock companies of Rivne region) priorities of practical application of methods about tax risks neutralization are defined, among them: reduction of probability and possible losses volumes connected with tax risk, tax risks prevention, evasion associated with risk, risks diversification and others. It is substantiated that the modern tax risk management system in Ukraine should provide a number of key elements at both the state level and directly for the taxpayer, including: activities for tax risk management organization; tax risks identification and assessment; identification of factors that determine tax risks; establishing the maximum allowable tax risks level; forecasting possible financial losses from tax risks; selection and application of effective methods neutralization for tax risks. Proposals, alternatives, calculations of modern risk-oriented management system formation for tax payments will allow ensuring a rational production resources use, which is an important factor in tax management effectiveness.