Tax Benefits for Companies: a Study of Legal Issues

The present research deals with a very broad legal institution of tax benefits. The principal idea of above concept may be introduced as benefits for the payment of taxes to certain categories of taxpayers. Although the institution was originally designed for tax protection of payments for individuals, this work focuses on companies as subjects of tax benefits in respect of their activity in social and economic significance. The aim of this study is to determine the legal nature of tax benefit as a tool for preferential taxation, its features, classifications, key aspects relevant to tax benefits, used precisely by legal entities; features of legal regulation of tax benefits for organizations at the present stage of development of the tax system of the Russian Federation. The analysis is conducted with help of theoretical and empirical base: legislative and doctrinal research, as well as judicial practice and explanatory acts of public authorities. The results reveal that the allocation of tax benefits precisely in terms of preferential taxation of organizations in practice does not make sense. Differentiation of benefits and preferences is practically impossible in that case and only creates confusion in law enforcement. It seems to be particularly true in connection with the introduction of the concept of tax expenditures, which combines both institutions. In general, the study summarizes the existing approaches to the institution of tax benefit, highlights the main problems associated with imperfect legislation, and, accordingly, creates a basis for further research.