The model of interaction between the enterprise and the state

Saint Petersburg State University of Architecture and Civil Engineering, Vtoraya Krasnoarmeiskaya str. 4. St. Petersburg, 190005, Russia

^* Corresponding author: markvlasov@mail.ru

Abstract

The purpose of the article is to determine and formalize the mechanism of interaction between an enterprise and the state. The assessment of not even the effectiveness, but the appropriateness of the functioning of the enterprise is in owner’s hands, who estimates the amount of income that he can count on when building up an enterprise. The government is also interested in the development and functioning of an enterprise, since the enterprise not only generates income in the form of tax deductions from its income, but also provides employment for the population. Therefore, the state seeks to create the necessary conditions for an enterprise. However, this takes into account a plenty of factors that can provide the company with competitive advantages, thereby contributing to an increase in the income of the owner. The state uses the same factors for taxation, since it believes that the owner should share his income for the possession of the benefits that are provided to him. It is from the point of view of the profitability of the enterprise that the owner considers government policies in the field of economics, finance, credit, and taxes. Therefore, there is a need for a formal definition of the mechanism of interaction between the state and the enterprise in terms of the distribution of income from the latter. The article is addressed, first of all, to persons developing a tax system for assessing the consequences of the adoption of certain decisions in this area. In addition, the article may be of interest to owners of enterprises, investors, economists, as well as representatives of commercial banks.