IDEAS home Printed from https://ideas.repec.org/a/eip/journl/y2013i1p54-67.html
   My bibliography  Save this article

Taxation of transactions with securities and derivatives having signs of fictitious nature: problems and solutions

Author

Listed:
  • A. Fedorenko

Abstract

The article considers the problematic issues of the taxation of transactions with securities and derivatives having signs of fictitious nature. The author identifies various discrepancies between the provisions of the Tax Code of Ukraine establishing a special procedure for determining the financial results of individuals' transactions with securities and derivatives and the general principles of the taxation of securities transaction in the Code. Among them are: (i) the application of the above mentioned procedure to the full amount of costs incurred to acquire securities (derivatives), whereas restriction should only apply to incurred losses, (ii) unclear definition of the moment from which the procedure applies, when only period in which it operates is established, (iii) extending legislative restrictions only to individuals' transactions with securities and derivatives having signs of fictitious nature, while legal persons remain outside its application. The signs of fictitious nature of securities (derivatives) and signs of fictitious nature of the securities' issuers are examined from the point of view of their adequacy and sufficientness for the determination and authentication of the proper phenomenon. It is established that most signs of fictitious nature given in the regulation of the National Securities and Stock Market Commission are common attributes of the issuers of securities (derivatives) during financial crisis and it's rather doubtful to recognize securities (derivatives) as having signs of fictitious nature on that basis. The author proposes various changes to the current legislation on securities and taxation with the purpose of bringing relevant legal norms in accordance with the economic content of the phenomena and processes that they regulate.

Suggested Citation

  • A. Fedorenko, 2013. "Taxation of transactions with securities and derivatives having signs of fictitious nature: problems and solutions," Economy and Forecasting, Valeriy Heyets, issue 1, pages 54-67.
  • Handle: RePEc:eip:journl:y:2013:i:1:p:54-67
    as

    Download full text from publisher

    File URL: http://eip.org.ua/docs/EP_13_1_54_uk.pdf
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eip:journl:y:2013:i:1:p:54-67. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Bazhal). General contact details of provider: http://eip.org.ua/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.