Discretion is among the central concepts in German administrative law and, accordingly, in tax law as its section. Discretion is also not insignificant in tax law of Ukraine.

 The article has the following objectives: 1) to define the content of the concept “discretion”; 2) to analyze the criteria for appropriateness of discretion; 3) to determine the specifics of discretion exercised in the area of taxation; 4) to identify the special place of evaluative concepts in the formulation of judicial doctrines.

It is established that the concept of “discretion” should be understood as the ability of a public authority to have a certain range for independent decision-making which can be verified by a court of law within a limited scope. Discretion of holders of public powers may relate to: a) action or omission by a public authority; b) the question of “how”, i.e., the question of measures to be used by a regulatory body as a response in a particular case. It is noted that in terms of discretion, it is important to comply with the following conditions: 1) the right to exercise discretion should be clearly prescribed by law or consistently ensue from it; 2) discretion should be exercised in accordance with the purpose for which it is granted; 3) discretion should be applied within the limits established by law. Respective conditions should be determined as conditions of appropriate discretion. The author emphasizes the importance of evaluative concepts in terms of development of the discretion doctrine in the area of taxation. At the same time, it is stated that in this area, discretion receives its limited application.

Therefore, both in Germany and in Ukraine, discretion in the area of taxation is possible. At the same time, it is noted that in Germany, discretion in the tax and legal field is significantly limited.