The Asymmetric Nature Of State And Local Taxes: Comparative Legal Research

This paper explores the nature of state and local taxes by comparing of specifies of their legal regulation within Ukrainian legal system and legal systems of foreign states. In this regard, the purpose of the contribution is to carry out the comparative legal research of the asymmetry of state and local taxes and basic criteria for identification of its nature. Firstly, the paper addresses broad issues concerning the dominant in science and tax law doctrinal approach of tax understanding. It is quite important due to the fact that local taxes, as well as state ones are integral parts of the tax system of the State. Therefore, dominant doctrinal approach has significant influence on understanding their nature. Dominated in legal doctrine of many countries, including Ukraine, etatist approach makes its main idea that taxes are an attribute of the State became the basis for the legislative definition of the legal status of the State with its unlimited, sovereign power to tax. Such an asymmetric State’s tax power gives it the opportunity to decide on the scope of tax right’s of local authorities. In particular, it provides the State with an opportunity to limit tax power of local authorities in the area of tax administration; to set restrictions on their right to establish taxes, determine tax rates and tax exemptions, etc. This leads to asymmetry of tax power of the State and tax rights of local authorities and thereby, asymmetric nature of state and local taxes. However, tax decentralization process draws attention to a fundamentally different from the etatist tax doctrine the anthroposociocultural methodological approach. It shows a distinct correlation between the right to tax of such authorities and their reciprocal obligation to provide public goods. In this regard it has become the methodological basis for our research.