Role of tax security in organization economic security system

The internal control system is examined as a variety of internal control of an economic entity on the one hand, and as the foundation for transitioning towards tax monitoring on the other. Such approach allows assessing this structure from the perspective of taxpayers, as well as from the standpoint of implementation of public function of tax control. The object of this article is the process of improving internal control system of tax obligations by the taxpayer in the conditions of digitalization of tax administration. The subject of this article is the theoretical aspects of internal control as an administrative function, as well as comparative analysis of the Russian “internal control” system with the classical COSO model. The scientific novelty consists in comprehensive research of the internal control of tax obligations, determination of its essential characteristics,  and assessment of the consequences of formalization of requirements thereof, which led to the conclusion on transformation of the internal control of the taxpayer from the area of reputational merits of the economic entity and internal administration instruments to the subject of public control by tax authorities in tax monitoring processes. It remains to be seen whether state interference in such delicate sphere of activity of an economic entity as internal control is justified. The goal of this research consists in the analysis of the effective requirements of the Federal Tax Service of Russia from the perspective of possibility of their implementation by the particular taxpayers. The article provides the examples of assessment of certain components of the internal control system based on the criteria set by the Federal Tax Service of Russia. The author formulates the definition of control procedure, carries out classification of the aforementioned criteria; develops the examples of effective design of some controls; as well as presents the examples of assessment of IT systems from in the context of extended requirements of the Federal Tax Service of Russia.

Introduction, Purpose. Economic crisis and an aggravation of a political situation make economists consider the matters of business management improvement in interrelation with such categories as “economic security”, “tax security”. However, most theoretical and methodological issues researched belong to macro levels (the state, the region). Problems of managing security of an entity are less studied. Still problematic remain such issues as uniformity and consistency of terminology and the choice of effective tools. Practical recommendations aren’t fully adapted to specific objectives and functions of management. The purpose of the article is to substantiate and develop recommendations on methodological support of tax security control within the system of internal control of an organization using risk-focused approach. The objectives of the study are the following: to expand the subject area of internal control to ensure the security of business and its sustainable development; to make the critical analysis of various points of view; to justify the authors’ understanding of the essence of tax security; to define goals and objectives of managing tax risks in the system of internal control. Methods. Problems of assessment of sustainable development of the organization and tax risks management have specified the methodological approaches to the research which are based on the analysis of provisions of legislative, legal and normative acts in audit and control, academic papers of domestic and foreign authors. Systems and risk-focused approaches, techniques of comparative analysis, synthesis, induction form the basis for the theoretical conclusions and practical recommendations on internal control. Results. The article provides the authors’ understanding of such categories as “economic security” and “tax security”. The objectives of the system of internal control (ICS) ensuring tax security are formulated. The authors develop the recommendations on how to assess the efficiency of ICS of an organization in decreasing the consequences of tax risks impact. Discussion. The results of a research can be used for further development of theoretical provisions of audit and financial control as areas of scientific knowledge, for making the practical recommendations covering a wide range of unresolved problems, in particular, on the choice of criteria and indicators of tax security, creation of the models adapted to various organizational forms of business, industries, etc.

Summaries of Papers in This Issue

The article aims to integrate the principles of internal control, established in the Russian legislation, with the objectives of internal audit and evaluation of the effectiveness of organizations' internal control. One of the main tasks of internal risk-oriented audits is to assess the effectiveness of organizations' internal control by internal auditors to gain confidence about the presence in the company of a sufficient number of control procedures for minimizing identified risks, the presence of regulatory control over their implementation, as well as the completeness of their implementation by employees of the organization. It is well known that internal control and risk management are interrelated. In Russian regulatory documents, risk management procedures are part of internal control. When practically implementing them into production activities, Russian organizations either combine internal control and risk management systems, or separate them into parallel organization management mechanisms. The internal control system described in the regulatory documents of the Ministry of Finance of the Russian Federation and the Federal Tax Service of Russia is sufficient for an intuitive understanding of the principles of its construction, but it does not give internal auditors answers on how to evaluate internal control systems qualitatively and quantitatively. When conducting an internal audit of business processes, the authors initially focused on the identification and evaluation of risk events, and only further on the organization of internal control as a whole, which led to the approach to the evaluation of organizations' internal control the article discusses. Thus, the mechanism for evaluating the effectiveness of internal control is based on an analysis of the completeness of regulation and the quality of the control procedure (the authorial definition of control procedure differs from the concept of internal control procedures presented in Russian legislation). The essence and practical manifestation of the concept “control procedure”, which, in the authors' opinion, covers all elements of internal control, is analyzed. An algorithm sufficient for conducting a qualitative risk-based internal audit is proposed to evaluate the effectiveness of internal control by determining the effectiveness of the design of the control procedure, the degree of implementation of the control procedure, the significance of the event, the significance of the control procedure, the effectiveness of the control procedure. Qualitative and quantitative criteria for determining the effectiveness of internal control indicators are proposed; they make it possible to practically evaluate the internal control system in an organization. Based on the practical experience of evaluating internal control, the authors present an example of calculating its effectiveness.

Currently, an effective internal control system is needed to ensure economic security and achieve the company's goals. The purpose of the article is to study the development and transformation of the company's internal control system in the new conditions, the distinctive feature of which is the use of digital tools and platforms. The scientific novelty of this article is determined by the formation of theoretical generalizations and the presentation of practical-oriented recommendations regarding the vector of the modern development of the company's internal control system, taking into account the requirements of the digital economy, from the target position of ensuring sustainable development and economic security. The study hypothesis is based on the statement that the digital transformation of the company's internal control system avoids many risk factors, including those associated with its employees, as well as building a comprehensive system to ensure the company's economic security based on the construction of an effective internal audit and control metamodel as an integral part of the management system. The article considers approaches to the further development of the internal audit and control system, based on the application of international standards and methodologies, taking into account the experience of building control systems in Russia.

The article reviews the content and economic role of monitoring financial and economic activities. The aim of the study is to determine the essence of one of the main elements that make up the internal control system, namely: monitoring, which ensures the economic entity economic security. The subject is an indicative monitoring system, with the help of which risks are identified in a certain segment of the enterprise activity, that is, at the micro level. The research methodology consisted in the information collection and generalisation in order to build a scientific hypothesis about the subject under study, as well as in the recommendations development to improve the internal control system efficiency in the direction of ensuring the economic entity economic security. As a result, the authors proposed a monitoring algorithm that ensures the internal control system and economic security effectiveness.

The subject of the research presented in this article is the theoretical and organizational aspects of creating a system of internal tax control of small enterprises. The author proves that such a system is an effective tool for managing tax risks of organizations to reduce current and potential financial losses of economic entities. The significance and relevance of this issue has been confirmed empirically, including using the latest data from the statistical tax reporting of the Federal Tax Service of Russia. The approach used by the author to the organization of internal tax control is based on the provisions of the COSO methodology, regulatory requirements of domestic legislation and provides for consideration of the specific features of small business entities that affect the procedure for conducting internal control of small enterprises. The criteria of functionality and structural elements of the internal tax control system are defined, their content is described. The approaches proposed by the author to the construction of the internal tax control system are summarized in the form of schemes, algorithms and recommendations that can be taken as a basis for the organization of such work by the heads of small enterprises. The scientific novelty of the research consists in a comprehensive study of the theoretical and organizational aspects of internal control for the development of an internal tax control system and in the application of the conceptual provisions of the theory of internal control to the management of tax risks of organizations, taking into account the specifics of small businesses.

Federation, caused, in turn, by global changes in the world economy, necessitate the constant improvement of tax and budget policy, taking into account continuously changing external and internal factors. Identification and analysis of such factors is one of the main tasks carried out by the Federal Tax Service of Russia in the framework of tax planning and forecasting. The development of digital technologies has led to the emergence of new data analysis tools, the development of methods for processing, storing and transmitting a large amount of information. The Federal Tax Service of Russia has developed and implemented many analytical digital tools within the framework of digital transformation. At the same time, the reduction of budget expenditures on digitalization, combined with the reorientation of budget expenditures from the creation and development of digital tools to the implementation of import substitution policy, necessitate the analysis of problems and prospects for the development of digital analytical tools of the Federal Tax Service of Russia.

Relevance of the research topic. The globalization threats of modernity determine the extreme urgency of the problem of ensuring the national security of any state. A new large-scale challenge for national security of Ukraine was the military aggression of the Russian Federation against Ukraine, a large-scale war that began on February 24, 2022. Under conditions of military aggression, the role and significance of the further development of security are enhanced. Formulation of the problem. Given the relevance and need to deepen the theoretical foundations of security, especially in the context of current warfare, as well as the conceptual definition of mechanisms (tools) for ensuring security in various areas, scientific intelligence of individual components, in particular, economic and financial security, their multi-stage and multi-level nature as economic security studies are required. Analysis of recent research and publications. Such scientists as O. I. Baranovskyi [1], T. H. Vasyltsiv [5], О. А. Grishnova [12], D. V. Nikytenko [8], S. V. Onyshchenko [9], Yu. M. Kharazishvili [12], S. M. Shkarlet [11] and others devoted their works to the study of the problems of economic and financial security. The results of our own scientific research on the problem of economic and financial security are given in [2-4]. Highlighting unexplored parts of the general problem. Despite the existing scientific developments in solving these issues, the relevance and the need for their early study and solution, the issues of multi-stage and multi-level security of Ukraine, in particular, economic and financial security, appropriate and full-fledged scientific studies have not been received and considered mostly fragmentary, which actualizes the topic of research and is (should be) the further development of economic security. Statement of the problem, and the purpose of the study. The subject of the paper is the theoretical, methodical, and methodological aspects of Ukraine's multi-stage and multi-level security, particularly economic and financial security. The purpose of the paper is to reveal the essence and substantiate the theoretical foundations of the multi-stage and multi-level security of the state on the example of the economic and financial security of the state. Method and methodology of research. In the process of conducting scientific research, both general scientific and special methods of scientific knowledge were used. In particular, scientific research methods were used: dialectical — to substantiate the content of theoretical provisions; abstract-logical — to determine the essence of the security of the state and its main economic and financial components; hypothetical-deductive — to build the main working hypotheses about the multi-stage security of the state; system-structural analysis and synthesis — to identify the multi-level composition of economic and financial security. Scope of the results. It is expedient to use the obtained scientific conclusions and results in scientific activities and further study of the actual problems of economic security, in the educational and scientific process of higher education institutions in the preparation of specialists in the specialty 8.18010014 "Management of financial and economic security", in the field of economic and financial security. Conclusions. The role and place of economic and financial security in the system of national security in globalization threats, in particular, in the conditions of military aggression, are determined and disclosed. The author's definition of the science of economic security as an interdisciplinary science about the essence, regularities, and ways of effective protection of national interests from real and potential, exogenous and endogenous threats is given. The multi-stage and multi-level security of the state is determined by the example of the economic and financial components of the security of Ukraine.

Introduction . The connection of financial and economic spheres in a high-risk environment of domestic industry allows us to talk about the problems of financial and economic security both in terms of public administration and in the functioning of economic structures. Traditional types of risks, the impact of which changes the effectiveness and efficiency of business structures, have long been studied within the classical approaches to risk management, while the risks caused by the spread of Industry 4.0 trends are still poorly amenable to management, control, minimization, which indicates the need to review and optimize the processes of formation and operation of economic security systems of industrial enterprises. Building a comprehensive system of financial and economic security of the enterprise is a long process, and its implementation requires resources, which encourages the search for evidence necessary to justify its need for company management. Purpose. The purpose of the study is to establish the peculiarities of the formation and functioning of financial and economic security systems of Ukrainian industrial enterprises in the context of the spread of Industry 4.0. Methods. In the course of research the monographic method and a method of the theoretical analysis are used. Methods of analysis and synthesis are also used. The method of generalization was used in the process of forming conclusions based on the results of the study. Results. The article examines the peculiarities of the formation and functioning of the system of financial and economic security at modern Ukrainian industrial enterprises, taking into account the risks of Industry 4.0. The characteristic of the structural and logical scheme of construction and functioning of the system of financial and economic security of the enterprise is given. The mechanism of ensuring financial and economic security of the enterprise is described. The features of strategic management of the system of financial and economic security of industrial enterprises are established. Originality. Financial and economic security of an industrial enterprise is a state of functioning of mechanisms for counteracting the negative impact of threats and risks of financial and economic nature on the results of its production and economic processes, which minimizes their destructive consequences for financial and economic interests of the enterprise and guarantees its ability to operate continuously. Industry 4.0 as the newest form of organization of industrial relations, has become a source for the emergence of new risks, threats and challenges for industrial enterprises. In particular, the low level of information and digital literacy of employees, digitalization of production processes, the rapid increase in information resources of different quality levels, the need for management decisions in time constraints, rising costs for innovative restructuring of production technologies, high obsolescence of equipment - all noted facts and should become catalysts for finding ways to form an effective system of financial and economic security in domestic enterprises and develop mechanisms for effective management in the strategic and tactical areas. In terms of Industry 4.0, the tasks of the economic security system include ensuring the protection of automated and digital processes, developing a mechanism to prevent cyberattacks, developing standards of security behavior with information resources of the enterprise, control of impersonal communication with stakeholders, security of digital financial settlements. Conclusion. The complex approach to formation and functioning of system of financial and economic security of the enterprise which should include the purpose, tasks, principles of functioning, objects and subjects, strategy and the mechanism of system strategic management of financial and economic safety of the industrial enterprises at their integration to Industry 4.0 is investigated. The purpose of the financial and economic security of the entity is the timely detection and prevention of external and internal dangers and threats, ensuring the integrity of corporate resources and achieving financial and economic interests of the enterprise, the implementation of its planned business goals in the short and strategic perspectives. With the spread of Industry 4.0, the problem of an integrated approach to economic and financial security is critical to building an effective management system of financial and economic security of the enterprise and maintaining its functional state at a high level. This will help prevent the loss of financial stability, solvency, competitiveness of the industrial enterprise and allow it to gain important market advantages, including the ability to develop and adapt to changing conditions of a risky economic environment.

The absence of a tax compliance theory in the Russian doctrine predetermined the objectives of the study – the search for promising tools to achieve the willingness of taxpayers to comply with the tax legislation voluntarily, as well as determining the place of coercive measures against taxpayers in order to ensure tax compliance in the Russian Federation. The work is based on the complex application of a number of general and special research methods (structural and functional analysis, comparative legal, formal-logical, system-structural methods). The information base of the research is represented by domestic legal acts and judicial practice, official data of the Federal Tax Service of Russia, scientific works of both Russian and foreign authors. The study’s main outcome is to validate the conclusion that tax administration (in order to ensure tax compliance) must combine not only the tools of coercive influence (tax audits, horizontal tax monitoring, anti-tax avoidance measures aimed at tackling aggressive tax planning) but also stimulating tools: interaction between tax payers and tax authorities in the form of information exchange, sending recommendations and proposals to the taxpayer on independent clarification of the tax base and tax obligations

Subject. The article focuses on tax security as a key functional component of economic security of organisations and a subject for accounting and economic analysis. Objectives. The purpose of the study was to analyse the key aspects of the tax security of organisations, the nature of tax risks, which are of great practical importance for the elimination of threats to economic security, and suggest ways to enhance the effectiveness of tax risk management. Methodology. To achieve the goals, we used the following scientific methods: analysis, synthesis, analogy, simulation, classification, comparison, and logical approach. Results. Based on the definitions of the tax component of the economic security of organisations and tax risks, we suggest a detailed description of the main instruments of protection from potential threats to tax security. The article details the stages of tax analysis and suggests a chart for the express assessment of tax risks (including a list of risk indicators and measures for neutralisation of tax threats to economic security depending on the level of tax security) and a registry of enquiries from tax authorities (for rapid response, which can help to mitigate tax risks associated with failure to provide a response to tax authorities).Conclusions. The article justifies the importance of accounting and analysis for ensuring the tax security of organisations in the current unstable economic environment and the necessity for the systematic analysis and assessment of tax risks aimed at their minimisation and elimination of threats to tax security of economic entities.

The purpose of the article is to form a methodology of scientific research in the system of financial and economic security. Methodology. The scientific works of scientists in the study of financial and economic security are the theoretical and methodological basis of the study. To achieve the study’s purpose, the following research methods were used: theoretical generalization – the essence and main components of the system of financial and economic security; methods of positive and normative analysis – to make recommendations on the methodology of scientific research in the system of financial and economic security. Results. Research in the financial and economic security system has been proven to be carried out in five areas. Among the areas of research of the system of financial and economic security are dangerous processes and phenomena occurring in the world economy that can negatively affect the economic security of Ukraine; the level of stability, protection of interests, and opportunities of the national economy to counteract the negative impact of the crisis of the world economy; the state of economic security of Ukraine and trends in the development of adverse factors in the national economy and the formation of mechanisms to counter them; the state of economic security of economic entities, external and internal factors of dangers and threats to economic security; features of the organization of the system of economic security of enterprises, the activities of the subjects of its provision and their use of techniques and technologies that make it possible to ensure economic security. The basic principles of research methodology in the system of financial and economic security have been provided. The principles of research methodology in the system of financial and economic security include the principle of conformity (responsible for building a system of definitions of basic concepts, axioms based on these definitions, theorems of the theory of economic security); the principle of additionality (allows the establishment of the place of the theory of economic security in the structure of economic science); the principle of hierarchical goals (ensuring the security of the upper level of the economic system is a condition for ensuring the economic security of the lower level of the economic system); the principle of relative independence of horizontal goals, methodological consistency, spatial consistency. Indicative, resource-functional, and program-target have been proven to be among the methodological approaches to the study of the system of financial and economic security. Practical significance. The methodology of scientific research in the system of financial and economic security, which can be used by applicants and scientific and pedagogical workers of higher education, is provided. Prospects for further research. Selection of the optimal methodology of scientific research in the formation of the system of financial and economic security.

The article investigates the applied aspects of the implementation and development of tax monitoring in the Russian Federation. The research objective is to identify trends, problems, and development prospects of tax monitoring in the Russian Federation based on a comprehensive analysis of institutional transformations and existing statistical data. Special attention is given to assessing its demand among the largest taxpayers based on the dynamics of the number and structure of monitoring participants by industry, the methods of information interaction used, taking into account the organizational features of activities and ownership structure, as well as the number of motivated opinions and the amount of taxes and fees settled by them. The potential impact of the digital transformation of tax monitoring on the state of internal control systems and risk management in organizations, as well as best practices for organizing information interaction and using modern technologies, has been examined. The research was conducted using general scientific methods, economic analysis methods (vertical and horizontal), and statistics (averages, specific indicators). The informational basis of the research consisted of the Tax Code of the Russian Federation and other regulatory acts, reports from the Federal Tax Service of Russia, large companies participating in tax monitoring, and the results of studies on the maturity of internal control and risk management systems conducted by consulting companies. Conclusions were drawn regarding the low proportion of the largest taxpayers who have transitioned to monitoring, as well as its low demand from large private businesses without government involvement. Trends in the development of tax monitoring for 2015–2025 are substantiated: increasing its accessibility; developing a risk-oriented approach by enhancing both the advantages for conscientious taxpayers and the monitoring control functions; and the digitalization of tax monitoring activities for both tax authorities and taxpayers. Problems reducing the demand for monitoring among taxpayers include high complexity and cost of entry; retention of limited effectiveness of motivated opinions; and limited effectiveness of the risk-oriented approach. As a result of studying the projects of tax authorities, prospects for its development have been identified. Elements of scientific novelty include the justified trends and prospects for the development of tax monitoring proposed by the author, as well as suggestions for addressing identified problems. Insufficient attention is paid to the development of joint compliance tools, which is a promising area for research.

The subject of the study is the fiscal and regulatory possibilities of corporate income tax, its structural elements and their impact on the economic activity of business entities. The purpose of the study is to identify possible ways to expand the use of the fiscal and regulatory potential of corporate income tax as an important tool for stimulating economic activity. The paper provides an assessment of the level of corporate income tax revenues to the budget system of the Russian Federation, analyzes the factors constraining the realization of its fiscal potential. Special attention is paid to the analysis of corporate income tax revenues based on the materials of one of the subjects of the Russian Federation with a low level of production and investment potential – the Republic of Dagestan. The conclusion is argued that despite the excess of the growth rate of income tax to the budget over the overall growth of tax revenues, the potential for increasing budget revenues due to an increase in the tax burden has been exhausted. Considerable attention is paid to the instruments for stimulating investment activity provided for by the current tax legislation on corporate income tax. The need to achieve the set research goal led to the expediency of using a set of different methods and techniques: the transition from the general to the particular, logical inference, observation, generalization, systematization, comparison, factor analysis, synthesis, a systematic approach. The research is based on official analytical data from the Federal Statistics Service of the Russian Federation, the Federal Tax Service of Russia, as well as the Office of the Federal Tax Service of Russia for the Republic of Dagestan. The scientific novelty of the study is to develop a set of recommendations aimed at realizing the fiscal and regulatory potential of income tax in the context of stimulating investment activity of organizations and reducing tax risks. The conclusion is substantiated that it is necessary to achieve an increase in corporate income tax revenues not by increasing the fiscal burden, but by fully realizing its regulatory potential as a tool to stimulate economic activity. Recommendations are formulated aimed at improving the investment tax deduction for corporate income tax as a tool to stimulate the acceleration of the renewal of worn-out fixed assets. It is noted that strategically important internal reserves for increasing income tax revenues can be both the growth of the tax base due to the intensification of economic activity of the subjects of the Russian Federation, and comprehensive solutions aimed at reducing tax risks.