Journal of Security and Sustainability Issues

Scientific literature particularly emphasizes the threats to the tax system emerging from tax incentives, as well as the need to control them in order to get the desired effect in society and to ensure the sustainability of public finance. Nevertheless, it can be noticed that relatively weak tax incentives control mechanisms exist in practice, in comparison with control programs of government spending. Only a small number of countries use tax incentives assessment models to justify political decisions. Evaluating Lithuanian practice and comparing it with other countries, it is obvious that Lithuanian government has no legal mechanism for evaluating the necessity and efficiency of tax incentives. Due to this reason, the tax incentives assessment model is necessary in order to evaluate Lithuanian personal income taxation and create competitive and sustainable tax system. The aim of the paper is to form the assessment model for income tax of individuals incentives, based on theory and practice of foreign countries and international organizations, and apply it to evaluate the impact of personal income tax incentives on public finance in Lithuania. As a primary task, the authors conducted an analysis of a number of theoretical and practical tax incentives assessment models. Second, personal income tax incentives are analyzed from different perspectives – as tax benefit, as tax expenditure, and as fiscal measure. Finally, the authors suggest the complex and multifaceted model that can be used to evaluate the impact of income tax of individuals incentives on public finance and their sustainability. It is believed that the results obtained due to the study carried out for the purpose of the present paper will help to shape favorable personal income taxation system for sustainable development process. The study was conducted using the methods of academic literature and statistical data analysis, meta-analysis, qualitative content analysis and correlation-regression analysis.

Security and sustainability conception analysis is being provided in the paper. The conceptions of security and sustainability have been selected due to their significance for contemporary globalized world’s issues. Initially, the perceptions encompassing even ancient times are being elaborated. Onward, with an intention to get a more sophisticated view of above mentioned expressions, relevant scientific literature has been critically reviewed accentuating to the dimensions of those two phenomena. The following common dimensions could be proposed: social, economic, environmental. The implication could be stated - security conception provides not only those three dimensions some other important dimensions could be distinguished as well. One more important finding composes the perception of dimensions interactions to analyzed conceptions. Some important implications are being provided in the paper, which elevate the significance of security to sustainability for today’s globalized society - security can be proposed as expression with ponderable value, while sustainability gains this power only with “sustainable development” phenomenon.