Modelling the Economic Policy of a Tax Shield in the Context of Overcoming Crises in the Economy

Industrial Engineering and Management Systems. 2020. Vol. 19. No. 1. P. 47–58.

Makarova V. A., Berlin J.

The tax shield is defined as the amount of possible payments, which in turn can increase or decrease by the difference in planned changes and market fluctuations in the supply of products. The main purpose of the study is to outline the main aspects of the approach to assessing the tax burden on capital investments. A leading method of investigating this problem is the method of uncertain coefficients, which was used to obtain difference equations of high accuracy. The novelty of the research is determined by the fact that the tax shield and its tools are determined according to price fluctuations on the main products of the enterprise. For a formal expression of the influence of incentives to invest an indicator called “tax shield” was developed. It has been revealed that at the theoretical and practical levels, the impact of tax mechanisms on the development of the national economy is assessed. The practical significance of the research is determined by the fact that for the first time such tools as a stagnating economic situation are considered. This will allow predicting tax revenues and adjusting the growth of the economy in the conditions of crisis.

Keywords: investments, Tax Regulation, Crisis Conditions, Tax Rates