Axiological Basis for the Tax System

• Author: Valerijs Jakusevs
• Profession: Riga Stradins University, the Republic of Latvia
• Pages: 59-70

Axiological Basis for the Tax System

PhD. student Valerijs JAKUŠEVS

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Abstract

The study is carried out within th e boundaries of the research “Taxation policy

of the Republic of Latvia within the context of the principle of equity”. The subject of the

study is the creation of a theoretical basis for considering the principles of the tax system

in terms of the axiology of law. The work is based on th e legislative practice of the Re-

public of Latvia, including with the increasing use of electronic systems for collecting and

processing information about the tax base. The study relies on legal literature, judicial

practice, state planning documents and the researches ordered by the government and

carried out by private contractors or scientists, as well as on statistics. The data collec-

tion does not confine itself to the research of phenomena and the systematization of the

new knowledge and the knowledge acquired before, but mostly uses the empiric scientific

method – observations, surveys. The study also employs the theoretical scientific method

by analyzing the aforementioned documents and literature and using these as a basis for

developing the theory and suggesting hypotheses, as well as through scientific (concep-

tual) modeling. Relying on the acquired data, the author verifies the forecasting power in

order to achieve the objective of the study.

Keywords: taxation, system, axiology, law, electronic, data, tax, principle, living

wage, wealth.

JEL Classification: K34

1. Introductory considerations

Taxes play an important role in generating government revenue. With the

help of taxes, the state performs its economic, social and other functions. Taxes

are the main revenue source of the state, providing financing for its activities.

Funds collected by the state in the form of taxes go to the state budget and extra-

budgetary funds of the state. Further, distributed and redistributed, these funds

are spent on the maintenance of public administration bodies, law enforcement

agencies, defense, financing of sectors of the national economy, payment of pub-

lic debt, financing of education, healthcare, social welfare and social protection

and other areas. Insufficiency of tax funds, inefficiency of the tax mechanism,

low tax collection, ill-conceived tax policy will negatively affect the state and its

citizens, the economy. The state can exist effectively when it has certain financial

resources, it uses various ways to attract resources, but still the main ones are

taxes. An effective tax system is the basis of the life of any state. Thus, the issues

of taxes and taxation are relevant in any state.

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Valerijs Jakuševs - Riga Stradins University, the Republic of Latvia, valerijs@lexbaltic.ee.