LEGAL SUPPORT FOR EFFECTIVE USE OF THE INCENTIVE FUNCTION OF TAX BENEFITS

Economic and Legal Problems of Economic Activity

Abstract

The paper studies the conditions for realizing the incentive function of tax benefits provided for the economic entities. The author grounds the necessity of making control over the proper use of target preferences taking into account the fact that it includes a target use of funds released as a result of tax benefits and target use of goods imported (supplied) as tax exempted. It is offered to fix the responsibility of the business entity to conduct a separate accounting of such funds and goods, as well as to present reports about their using. Particular attention is paid to the possibility of making control over a target use of benefits. The conclusion is made that the identification of violations of the tax legislation in the sphere of a target use of goods imported (supplied) with application of tax benefits is possible if the tax bodies are granted the powers to conduct a real inspection on these issues.