The theorical analysis of the importance of taxes and the taxation principles

Abstract

Problems of disagreement in different concepts of taxes, their functions and roles in society as well as the taxation principles of good tax system and taxation tasks are analysed in this article. Different academic studies and definitions of taxation have been examined and classified and it allows us to state that taxation is obligatory for any person, it is indispensable for the budget of any country and no one can expect any rewards. Critical analysis of tax functions allowed us to highlight two main functions – fiscal and economic. Equity, economic effectiveness, elasticity, productivity and simplicity of administration are defined as the main principles of taxation when forming the tax system.