FUZZY REGULATION MODEL OF THE INTERACTION BETWEEN THE STATE AND ECONOMIC SUBJECT WITHIN THE SHADOW ECONOMY AND TAX FIELD
Mirali S. Kazimov
Nazim K. Aliyev
Shahzada G. Madatova
Abstract.
State as an instance of tax authority and economic subject have aims respectively with different directions as tax collection and accomplishment of tax responsibilities. At the same time each of them makes effort to somehow benefit as a result of their own activity. If the utility of the state is expressed by the amount of taxes collected to the state budget, then the utility of the economic subject can be expressed with the left amount of its revenue after accomplishment of tax responsibil-ity.
On the other hand, if we consider that state is socially responsible for the sustainabil-ity of the activity of economic subject, then another component of benefit of the state becomes obvious and this is reflected in the left revenue of the economic subject.
At the same time economic subject also owns a utility function of two components. Economic subject should both try to save the left revenue for its social security and accomplish the commitment of corporate responsibility to the state budget.
Thus, both them possess utility function depending on the left revenue and tax amount paid to the state budget. At the same time state should control truthfulness of the tax base of economic subject and the existence of its risk for the emergence of shadow economy. It is clearly seen that within the process of investigation of interaction be-tween state and economic subject a number of economic and social factors should be taken into consideration. In this case investigation of the emergence of shadow econ-omy and the interaction of its measurement with other economic factors is not an exception, either. In this article economic system is reviewed as an active system; and evaluation and reduction of the process emergence rate of shadow economy via opti-mization methods is being analyzed within economic relations between the state as a tax authority and economic subject as a taxpayer.
In this case, profitability of economic activity as a main influencing factor, expenses for staying in the shadow, contribution of tax and revenue for general utility are eval-uated through fuzzy approach. Selecting profitability as a main factor is related with the process of not declaring the real level of profitability to tax authority by economic subject.
Keywords:
State and economic subject, shadow economy, optimization, profit-ability, tax evasion, mathematical model, fuzzy approach
https://doi.org/10.1007/978-3-030-64058-3_27
