Taxation system as a key to economic stability.

Abstract

The article analyses major changes and real state of the tax system of Ukraine, determines weak aspects and disadvantages of the current system, defines strategic mistakes that were made by government by upgrading the Tax Codex of Ukraine. According to the global experience there are listed a line of suggestions and advice, based on the positions of Ukrainian tax system in international rankings, in order to stabilise the economy and improve the microclimate within the country. One of the main aspects that were analysed are specific taxes for agricultural enterprises and tax incentives for small and medium sized enterprises in order to determine the weak point in the taxation system in this sphere. Also the article states that minimal corporate and profit taxes is lucrative for a country, as it will increase the investment attractiveness of the business. Among other Post-Soviet union countries, Ukrainian accountants spend the biggest amount of time to fill in and submit all the statements, that’s why it is important to reform the order of submitting all the statements so its going to be easier to check them, determine disorder and punish perpetrators. If the government decreases taxes, that will automatically decrease the level of shadow economy.