INSTITUTIONAL FACTORS OF TAX PROVIDING INVESTMENT DEVELOPMENT OF TERRITORIAL COMMUNITIES
The article defines the factors of the institutional provision of effective use of the existing investment potential of territorial communities. The influence of the tax reform on the development of territorial communities is considered. The reform of local self-governance involves the transfer of the share of national taxes to local budgets, creates economic interest of communities in the development of new industries, of business support and of economic development for the country as a whole. It is shown that issues of tax competition and developmental balance are at the center of the attention of the European Commission and the whole European community, since the consequences of such concept are implemented in real life there are both positive and negative results. The results of the research tell that the formation of a supportive institutional environment should take place on the basis of an integrated combination of measures of rapid direct and indirect impact with the tools of organizational support and the formation of a business image. It is admitted that competition, privacy and sovereignty are the features of a free society, therefore, tax competition between countries should be noted. It is stated that the main instruments for the formation of a favorable institutional environment for the development of the region include legislative, organizational, economic and financial measures of a direct or indirect nature, the impact of which should promote the revitalization of socio-economic development of regions, as well as must ensure the sustainability of the stimulating effect in the form of investment viability of projects through the existing organizational approaches, rules, conditions of effective use of available resources of territories. The applied mechanisms for the formation of a favorable institutional environment for the economic development of the regions are proposed.
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