ASSESSMENT OF SHORTFALL IN TAX REVENUES IN KAZAKHSTAN

Abstract

Tax incentives are an active tool of the state's tax policy. They are designed to have a stimulating effect on subjects. Meanwhile, in Kazakhstan, tax incentives are not used effectively enough, which does not contribute to achieving the necessary stimulating effect and poses significant threats to the formation of the country's budget. According to the authors, tax benefits should be targeted and provided exclusively for a limited period of time, as an exception to the rules of taxation. It has been established that tax incentives in Kazakhstan have a global nature and a latent effect, which requires careful elaboration of a methodology that allows for an objective quantitative assessment of their impact on various tax objects, taking into account time parameters.

Tax benefits are directly related to the concept of income shortfall. Meanwhile, there is no definition of this term in the legislation of the Republic of Kazakhstan. The article discusses approaches to determining the shortfall in income, presents the author's definition, and quantifies the losses of the state budget of the Republic of Kazakhstan on the largest taxes – VAT and corporate income tax.

The research methods are empirical review and generalization, a systematic approach, statistical and quantitative analysis.  Based on a quantitative assessment of tax revenue shortfalls, a set of recommendations aimed at improving their monitoring is presented.