INTERNAL CONTROL OF BUDGET SETTLEMENTS FOR THE REAL ESTATE TAX OTHER THAN THE LAND PLOT

Abstract

Despite the simple mechanism for determining the amount of a tax on real estate other than the land plot payable
to the budget, tax audit and timeliness of its payment remain relevant, because errors and violations lead to potential
risks associated with the impositions of financial sanctions by regulatory bodies. Therefore, the issue of improving the
methodology of internal control of budget settlements for the mentioned type of local tax cannot be ignored. The purpose
of the article is to develop a methodology for internal control of budget settlements for the tax on real estate other than
the land plot owned by legal entities. The study was conducted using analysis, generalization, grouping, and comparison.
The graphical method was applied to illustrate the research findings. The study emphasizes the role and significance of
the tax on real estate other than the land plot in the formation of revenues of territorial communities. It is determined
that the tax base of the relevant tax has limited mobility, and the use of funds from its collection is directly related to the
development of the infrastructure of the territories where the taxable real estate objects are located. Emphasis is placed
on the fact that there is the probability of the increase of shadow income taxation when imposing the tax, and the relative
simplicity of administration ensures the stability of budget revenues. The place of the tax in the system of property taxation
in Ukraine was determined. It is highlighted that this issue is not urgent for individuals, since this tax is calculated for
them by the supervisory authorities at the tax address of the property owner. As for legal entities, they independently form
objects and determine the tax base. The article generalizes the elements of the tax on real estate other than the land plot
and groups the objects of taxation of residential and non-residential real estate. The authors developed a methodology
for internal audit of budget settlements for the tax on real estate other than the land plot with the identification of areas of
verification, control procedures, and indicative sources of information. The developed methodology is intended for both
internal control entities and representatives of state regulatory bodies.