Peculiarities of tax audits during martial law

Abstract

Introduction. Tax audits are a crucial part of any country’s financial system, ensuring taxpayers comply with the law and pay their taxes on time. However, conducting tax audits during wartime can be complicated due to various factors. Ukraine, currently experiencing an extremely difficult period in its development due to the constant threat of war and geopolitical conflicts, serves as the context for this study. The purpose of the paper is to explore the unique challenges of conducting tax audits during wartime. It seeks to understand the changes in tax legislation and audit procedures during war, the increase in tax violations and abuses, and the challenges faced by fiscal authorities in ensuring tax compliance and maintaining budget stability. Results. The study reveals several key features of conducting tax audits during wartime, including changes in legislation, increased tax violations, challenges for fiscal authorities, and preparation for audits. Based on these findings, practical recommendations have been developed for businesses and taxpayers on preparing for tax audits during military operations. Conclusion. The paper concludes with the need for legislative adaptation, the use of technology to simplify the audit process, promoting transparency and mutual trust between tax authorities and taxpayers, and strengthening control over compliance with tax legislation. Despite the challenges that may arise during a state of war, compliance with tax legislation remains the obligation of every taxpayer.