DIGITALIZATION OF TAX ADMINISTRATION IN UKRAINE: MAIN ACQUISITIONS AND PROBLEMS

Author
, Ph.D. in Legal Sciences, Associate Professor, Ukraine, Odesa

In heading

 Law;

Signed print

 19.12.2024

Issues number

 2024 - №4 (59)

Page

 58-78

Type of articles

 Scientific article

Code UDK

 347.73: 336.22

ISSN print

 2411-5584

Abstract

 Problem setting. Digitalization of tax administration in Ukraine is one of the key areas of reforms being implemented to simplify and optimize the collection of taxes and fees, the tax system, increase its transparency, and combat tax evasion.
Recent research and publication analysis. The issue of global digitalization is the subject of many scientific studies, including digitalization of the national tax and fee administration system and the tax system. Scientists study the issue of digitalization of tax administration and taxation in general in the context of its root causes, elements and their content, trends, foreign experience of implementation and application, results of implementation and application, determination of its meaning and necessity.
Paper objective. The purpose of this work is to identify and describe the actual results of the implementation of digital innovations in the field of tax and fee administration in Ukraine. The goal will be achieved through the following tasks: (1) identifying the main digital innovations in the field of taxation and (2) outlining the challenges facing the state in connection with this.
Paper main body. The main directions of digitalization of tax administration in Ukraine are:
I. Introduction of the Electronic Taxpayer’s Cabinet.
II. Automated verification and control systems.
III. Integration with international information exchange systems.
IV. Electronic checks and fiscalization.
V. Electronic document flow.
VI. Development of e-Residency.
VII. Electronic accounting of value-added tax.
VII. Tax amnesty and online asset declaration.
IX. Big Data and artificial intelligence in tax control.
X. Cybersecurity of tax information.
The process of digitalization of tax administration is slowed down by a number of problems. Among them are: (1) insufficient technical readiness and proper infrastructure in certain regions of our country; (2) the need to increase the level of digital literacy among entrepreneurs and citizens; (3) problems with cybercrime and the risks of loss or theft of tax information, which requires constant improvement of protection systems.
Digitalization of the tax system facilitates tax administration, reduces bureaucracy, and increases budget revenues by reducing opportunities for tax evasion. The transition to digital technologies also makes it possible to fight corruption more effectively, as automated systems reduce the possibility of human intervention in verification and control processes.
Conclusion of the research. Digitalization of tax and fee administration is a strategically important stage in the modernization of the Ukrainian tax system. Thanks to the implementation of electronic services, automated control systems, information exchange tools and artificial intelligence, the state is able to create favorable conditions for business entities, while increasing the efficiency of tax collection and reducing opportunities for tax offenses.
In the current period, there is a lack of systematicity in the process of digitalization of the considered sphere. First, at the stage of legislative regulation of the use of digital technologies, issues of poor-quality legal techniques, contradictions of norms and lack of unity in regulation arise. Second, it is important to highlight the stage of testing and analysis of its results in the process of digitalization of tax administration. This can qualitatively and significantly affect the regulatory consolidation and further legal application of digital technologies in the context of taxation in Ukraine. Third, the digital education of the population is an important aspect.
Short Abstract for an article
Abstract. This research article aims to address the issue of digitalisation of the national tax system by analysing the work of scholars in the context of digitalisation studies, legislative provisions, court practice, etc. The purpose of this work is to study, describe and highlight the actual results of digitisation of the tax system of Ukraine (directions and challenges). The author believes that this goal should be achieved by fulfilling the following tasks: 1) identifying the main areas of digitalisation of taxation; 2) outlining the challenges faced by the State in connection with the digitisation of the tax system. The author of the article analyses the opinions of other scholars on the issue of digitalisation of society, the State and the tax system in the context of globalisation; on the experience of foreign countries; on the results of implementation of digital technologies in the national taxation system, etc. The results of this work are the identification and description of the areas of digitalisation of the tax system of Ukraine, their content, consequences, as well as the challenges faced by the state (legislative, executive, judicial authorities and the population). Among other things, the results of the work include defining the subject of discussion and focusing on important aspects of digitalisation as a multilateral process that should be systematic and unified. In the conclusions of this paper, the author determines that digitalisation is a strategically important stage in the renewal of the national tax system. Thanks to this, the state provides opportunities and incentives for businesses and citizens, along with ensuring the filling of the relevant budgets. In his conclusions, the author also emphasises that digitalisation is precisely the tool that is designed to ensure transparency, efficiency, speed, automation, reduction of fraud and corruption in relations between taxpayers and regulatory authorities. In addition, the scholar emphasises the disadvantages of introducing digital technologies into the taxation system and the importance of responding to such disadvantages in a qualitative and substantive manner through testing, monitoring, and ’working on mistakes’.

Keywords

 digitalization, tax system, blockchain, tax information, artificial intelligence, administration of taxes and fees, Internet of Things, automation of tax administration, regulatory bodies, cyber security.

Reviewer

External reviewer

Article in PDF

 Economic Theory and Law, 2024-4-58-78

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Code DOI

 https://doi.org/10.31359/2411-5584-2024-59-4-58

This post is also available in: Ukrainian

19.12.2024