Modeling the Tax Policy of Agriculture Enterprises

Abstract

Agriculture enterprises play an important role for Lithuania’s agriculture and economy as create the gross value added and new jobs and carries substantial value in social, ethnocultural and environmental aspects. Tax modeling has received considerable attention recently both at the EU institutions and in the scientific research domain. L. Tulush (2015), N. Ivanova et al (2012), E. Klamut (2016), E. Dace et al, (2015), C. Vjetkovic et al, (2015), J. Pawłowska-Tyszko et al (2015), K. Mittenzwei (2017), D. Nerudova & K. Kkrchniva (2016) and other researchers have been dealing with tax management methods, assessing this process, analyzing implementation of the taxation theory in business enterprises, the effect of taxation on measures assumed by the authorities and social welfare. Research problem is: what methods are applicable to the appropriate tax policy modeling for agriculture enterprises. Research aim is to develop a theoretical tax model for agriculture enterprises and demonstrate its applicability. Tax modeling techniques and methods, their advantages, shortcomings and applicability have been studied under the methods of analysis and synthesis of scientific literature and EU legal acts. Under the method of modelling employed in this study, the model of tax policy in a agriculture enterprises has been developed and covers the following stages: economic operation and tax analysis of the company serving as the basis for identification of tax goals; formulation of the objectives applicable to the tax policy; exploration of the tax payment options (scenarios) most favourable to the agriculture enterprise and calculation of their benefit to the enterprise; formation of a long-term taxation strategy. Tax policy model has been designed and verified empirically in the 25 agriculture companies in Lithuania.