Legal regulation of IT companies’ functioning in performing tax control (domestic and foreign experience)

Abstract

The paper examines the peculiarities of taxation of IT technology services in Ukraine. The introduction of digital technologies in the field of taxation today is due to the need to simplify the process of processing tax information, reduce the corruption need to improve the quality of services, improve the quality of planning and forecasting the development of the fiscal system and the national economy as a whole. Digitalization can play a key role in helping tax authorities reduce administrative costs, collect more revenue more efficiently, increase transparency and service for taxpayers, and adapt big data flows. As a result, there is a trend towards global digitalization of the tax space, digitization of tax information, and the introduction of new technologies for tax administration. In our opinion, the tax policy of digitalization will remain at the center of its global debate for a long time as to whether international tax rules will change or remain unchanged in an increasingly changing environment. The purpose of the paper is to study the impact of digitalization on the development of tax control. Researched: the trends of digitization of tax administration, such as the creation of web portals for the provision of electronic services, the introduction of an electronic check, the use of automation and data analysis to improve the efficiency of tax control, and the introduction of the practice of using pre-population of tax return. The main problems associated with these processes are outlined, namely the problems of digital exclusion, as well as the possible occurrence of under or over-tax obligations and, as a result, provoking tax avoidance and evasion. It was established that, regardless of certain problematic issues, it is worth noting the possible positive impact of digitalization on the effectiveness of tax control. In particular, changing the format of interaction between the tax authority and taxpayers, increasing the transparency and accessibility of tax services, changing the focus of tax control from activities aimed at detecting committed violations to measures for their prevention, which in turn contributes to increasing the level of trust and tax awareness of tax subjects.