refuse or avoid paying for being defended, even though they are still as well guarded as those who contribute to the state's efforts. Therefore, it is usual for governments to avoid relying on volunteer donations, using taxes and, in some countries, conscription instead. In the case of defense spending, alternative perspectives of the free rider problem also exist. A free rider may be an individual or group of military contractors, ideologues, government officials or lobbyists that inflate the risk of enemies, or even convinces the state to launch an unnecessary and expensive war, in order to sell more arms and consolidate their power. In this example, the free riders avoid all of the personal risks of war while enjoying the benefit of tax dollars spent under the false popular perception of the urgent need for national defense. Government is indeed the primary mechanism by which societies address free rider problems
purchase of equipment and construction. By estimation of the Federation of Employers of Ukraine, VAT refund debt (essentially money borrowed by the State) to companies amounted to about USD 4 billion by the end of 2012. The situation is additionally complicated by the fact that Ukrainian state simply does not have money to be able to refund to businesses. There are ongoing discussion between the State and business lobbyists in favor for issuance of VAT bonds, securities which will be issued to companies to cover VAT refund. Such VAT bonds would theoretically have a secondary market in which companies would trade (or use as collateral for bank loans) these bonds with certain discount to turn prepaid VAT into cash. 1.8.4. Transfer Pricing (TP) Ukraine applied new transfer pricing rules as from January 1st, 2013 Prior to 2012, Ukraine had not been overly concerned about transfer pricing issues. But
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