Theoretical approaches to the determination of tax potential

Zh.B. Kazbekova, D.T. Kalmakova

  • Д. Т. Калмакова Al-Farabi Kazakh National University


Tax capacity is one of the most important economic categories of tax planning process. It allows tofairly assess revenue opportunities of the budget, region’s security with own financial resources. Assessmentof tax capacity is an essential tool for competent tax planning and budget process, since correctassessment of tax potential reveals a real need for additional funding in the region and identifies the reservesof tax revenue growth. In crisis economic conditions when there is a decline in budget revenues,in prices for major exports, when there is a downtrend in business activity, reasonable and adequateassessment of economic unit`s tax potential becomes particularly relevant. Before assessing the taxpotential of the region, it is necessary to identify the nature of this category, determine the basis for theformation of tax potential and formulate a definition of tax potential. The article deals with three maintheoretical approaches to the determination of tax potential, their main advantages and disadvantages.According to a review of three theoretical approaches to the determination of tax potential there havebeen chosen one, the most appropriate approach, on the basis of which direct tax capacity assessmentwill be implemented.Key words: tax capacity, theoretical approaches, tax planning, tax base, tax forecasting.
How to Cite
КАЛМАКОВА, Д. Т.. Theoretical approaches to the determination of tax potential. The Journal of Economic Research & Business Administration, [S.l.], v. 120, n. 2, p. 210-216, nov. 2018. ISSN 2617-7161. Available at: <>. Date accessed: 16 feb. 2019.