Function of the tax

Different types of taxes have different functions. In general, taxes are carried out simultaneously four basic functions: fiscal, regulatory, catalytic and controlling. Fiscal function of taxation is the main function. Historically, it is the most ancient and at the same times the main function: taxes are a primary component of the state budget revenues. The formation of the state budget on the basis of a stable and centralized taxation makes the state itself into the largest economic entity. Implementation of the function is carried out by the expense of tax control and tax penalties that maximize collection of taxes and established an obstacle to tax evasion. It is a payment to the state. With this function the main purpose of taxes is implemented: the formation and mobilization of financial resources of the state. All other functions of taxation are derived from the fiscal function. Distributive (social) function of taxation consists in the redistribution of public revenues. Distribution function of taxes> has several properties that characterize the complexity of its role in the reproductive process. Regulatory function of taxation is aimed at achieving through tax incentives of any objective of economic policy. Control function allows the state to track the tax timeliness and completeness of revenue payments and compare their magnitude of financial resources. Exercise control function of taxes, its fullness and depth to a certain extent depend on fiscal discipline. Its essence is that taxpayers in a timely and fully paid their taxes determined by law. The control function of tax and financial relations is seen only in terms of distribution functions. This is very important in the economy. Catalytic function of taxation is aimed at supporting the development of certain economic processes. It is being implemented through a system of privileges and exemptions. Disincentive function of taxation is aimed at establishing a barrier to the development of any economic process. The function of the tax is a manifestation of its nature in action; it is a way of expressing its properties. Function shows how the public purpose realized the economic category as a tool of cost of distribution and redistribution of state revenue.