Mathematical modeling of the optimal tax trajectory of a commercial organization

Purpose: is to develop the mathematical model for quantitative assessment of the tax burden by building the tax trajectory of a commercial organization as the tool for optimizing tax payments.

Methods: the presented concept is developed on the basis of mathematical modeling of related economic processes concerning the formation of the tax base of the large economic entity. The model is based on a differential equation that determines the dynamics of fixed assets in relation to the selected optimal tax trajectory of the company.

Results: the authors propose an approach to the calculation of tax payments based on the construction of the optimal tax trajectory of an economic entity. The analysis of the impact of building the optimal tax trajectory on the efficiency of the organization’s activity was carried out. In this context, the number of principles for the construction of the optimal tax trajectory of the company are formed, allowing to take into account the interests of the taxpayers and the state in terms of the efficiency of resource allocation and stable budget replenishment. It’s revealed that in order to replenish the revenue part of the budget it’s possible to increase the tax burden of an economic entities, which doesn’t affect their financial position.

Conclusions and Relevance: the proposed approach expands the instrumental apparatus for calculating tax payments from the position of both taxpayers and fiscal authorities. The construction of the optimal tax trajectory contributes to the adoption of targeted decisions regarding the increase or decrease of the tax burden of an economic entity in mutual accounting with the factors of the macroeconomic situation. This approach allows both to manage the revenue part of the budget and subsequently redistribute it to solve social problems or overcome the decline in business economic activity. At the micro level, this contributes to the synchronization of the organization’s taxation system and the financial results of its activities. The practical significance of this approach lies in the prospect of further development and scaling of the mechanism of building an optimal tax trajectory for a wider range of companies, including through various instruments of state financial support.

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