Tax Deduction: Legal Nature, Problems and Solutions

Abstract

Relevance of the research is determined by the increasing social and incentive role of tax deductions within the modern tax policy of Russia. In this article, the author explores the legal nature of tax deductions. Novelty of the study lies in a comprehensive analysis of practical issues related to the provision of tax deductions and in the development of proposals aimed at improving tax legislation. The purpose of the study is to identify the challenges in applying tax deductions in Russia and to justify directions for their improvement in order to enhance social protection of the population and stimulate economic activity. The study employs research methods such as analysis and synthesis of regulatory legal acts governing the procedure for granting tax deductions, comparative analysis of statistical data and law enforcement practice, the monographic method to examine academic publications and expert assessments, a systematic approach to develop proposals for improving tax mechanisms, and the empirical method to identify real problems and contradictions in the application of tax deductions. In the course of the study, legislative acts of the Russian Federation and the works of experts in this field were used. The paper considers issues related to the application of personal income tax deductions in the Russian Federation in terms of addressing a number of socio-economic tasks, and outlines possible ways to improve this institution. The authors conclude that the current tax policy of the Russian state is focused on strengthening the social and incentive role of tax deductions. Their use and the reimbursement of overpaid taxes from the budget are becoming increasingly common among citizens.