Controversial Issues in Electricity Market Participants’ Property Taxation

The purpose of the study. The ambiguous and unclear interpretation by the tax authorities, in contrast to the accounting rules, the differentiation of the concepts of movable and immovable property, as well as an arbitrary approach to the term «single immovable complex», give rise to unjustified accrual of property tax on organizations for participants in the electricity market, in relation to power machines, generating and electric grid equipment of companies participating in the electricity market. This state of affairs generates a lot of litigation with contradictory decisions, thus forming a legal conflict. The strategic importance for the state and the special role of the electricity market in the formation of the digital economy, the need to increase investment in increasing production volumes and modernizing this area require unambiguity and clarity on the issue of taxation. To solve the problem, the author proposes to supplement part 4 of Article 374 of the Tax Code with paragraph 13, with the exception from the object of taxation the generating, electric grid, distribution and lowering equipment that is involved in ensuring the functioning of the electricity market. It is precisely this change in the Tax Code that will allow this legal conflict to be resolved with minimal effort for government agencies.