Combat Tax Evasion Research Articles

Digitalization and Transparency in Cfem Collection: the Use of Technologies to Combat Evasion and Underbilling

Objective: To investigate the role of digitization and transparency in the process of collecting Financial Compensation for the Exploration of Mineral Resources (CFEM), focusing on the use of technologies to combat tax evasion and underbilling in the mining industry. Theoretical Framework: It is based on the strategies adopted by the National Mining Agency (ANM) and other control bodies, such as the Federal Revenue and Siscomex, in the implementation of digital systems that promote greater efficiency and clarity in the collection of the CFEM. Method: Combines literature review with theoretical-empirical research case study with the use of regulatory and legislative content analysis. Results and Discussion: The results of the work sought the need for greater control and transparency in the mining sector, one of the main sources of tax collection for mining municipalities Research Implications: The results include the identification of good practices and effective technologies in the collection of CFEM, as well as the proposal of improvements for inspection and tax collection in the mineral sector, focusing on providing greater predictability and fiscal justice, contributing to the sustainable development of mining regions and increasing efficiency in the use of public resources. Originality/Value: Digitization, when fully implemented and accompanied by effective regulation, can transform the Brazilian mining sector, contributing to greater tax justice and more balanced and sustainable economic growth.

E‐Government and Tax Evasion: Does the Free Press Connect the Dots?

ABSTRACTThis study, for the first time, tests the moderating effect of press freedom on the association between e‐government and tax evasion. It aims to suggest policymaking better to combat tax evasion through e‐government and the press. The study sample covers the period between 2002 and 2017 and includes 2202 country‐year records affiliated with 138 countries. The time‐fixed effect was executed to test the proposed hypotheses. The conclusions drawn from the study are as follows. First, the study finds that e‐government practices with four proxies curtail tax evasion through a long‐term vision of public administration, governments' adaptability to change, delivering online services to the citizens by governments, and crafting a legal framework for digital business services. Second, the study finds that all three proxies of press freedom (i.e., legal, economic, and political) are significant predictors of tax evasion implying that tax evasion is curbed in countries where the press is free in terms of highlighted dimensions of media freedom. Third, the free press, with its all three proxies, moderates and strengthens the relationship between e‐government implementation and tax evasion. To fully realize the benefits obtained from e‐government implementations, states worldwide need to build a better institutional environment one dimension of which is the free press.

Customs Duty Evasion and Enforcement in the Arthaśāstra

The first part of Chapter 2.21 of the Arthaśāstra deals with the activities of the Customs Superintendent, containing recommendations regarding the collection of customs duty. Scholars have encountered several difficulties in understanding the meaning and purposes of the activities described. An auction-like procedure described in the text has been analyzed by some as the normal operation of a market, with the payments to the treasury mentioned there taken as a hitherto-unknown market tax—the price of trading in the market. Other paragraphs in the text describe seemingly self-contradictory trader actions. Interpretations of these actions have involved the imbuing of traders with complex psychological beliefs regarding the actions of other traders. This article proposes an economic model of the underlying market structure, which leads to a different and integrated reading of the text. In this reading, the author of the text, recognizing the incentive for importers to undervalue their goods, suggests the auction procedure and accom- panying penalty payments to elicit truthful revelation of importers’ valuations and to maximize customs levy collections. By comparing the procedure in the Arthaśāstra to modern-day regulations intended to combat tax evasion, the article provides early evidence of the use of sophisticated mechanisms to elicit truthful value revelation.

Can the optimal fiscal policy counteract corporate tax evasion without harming job creation?

PurposeThis paper studies the relation between corporate tax evasion, job creation and optimal fiscal policy. Job creation depends on firms’ profits since firms open (“create”) new jobs when profits increase. In turn, firms’ profits depend on incentives (rewards) and disincentives (penalties) to comply with tax rules. Hence, any fiscal policy to combat tax evasion also has repercussions on job creation.Design/methodology/approachThis paper is both theoretical and empirical. From a theoretical point of view, a modified and extended version of the search and matching model of the labor market is used. In this framework, moreover, the welfare function of workers and firms is closely related to the job creation condition. Empirically, a panel analysis of a system of two simultaneous equations that covers 54 countries (both developed and developing) and four years (2018–2021) is carried out.FindingsThe paper finds that anti-tax evasion policies should be related to job creation policies. Also, anti-tax evasion and job creation policies change according to the extent of tax evasion in the economy. Precisely, when tax evasion is widespread, a lower tax burden (tax cuts or provision of fiscal rewards) requires tighter tax audits, whereas, where most people comply with tax rules, a decrease in tax audits is possible.Practical implicationsThe empirical analysis supports the model-generated theoretical relationships. Eventually, therefore, the optimal fiscal policy suggested by this work can counteract corporate tax evasion and, at the same time, reduce the firm’s tax burden, thus promoting job creation.Originality/valueAs far as we are aware, this is the first paper that considers the close and direct link between fiscal policy, corporate tax evasion and job creation.

Liability of legal entities for tax offenses: experience of foreign countries

The article is devoted to highlighting the experience of foreign countries regarding responsibility for tax offenses. It is noted that since the filling of the budget of any state depends on establishing a mechanism of control over the implementation of tax revenues from large taxpayers, namely from legal entities, the question arises of introducing legal responsibility for such entities for violation of established prescriptions. One of the tools to combat tax evasion in Europe is the standard tax justice model, which introduces several sanctions for legal entities that violate tax legislation. The existence of two approaches is emphasized: American and European. The first is characterized by harsh sanctions for committing tax offenses and the application of combined fines, while the second is more democratic, preventive in nature and establishes fixed amounts of fines depending on the magnitude of the violation and the presence of intent. The main attention is paid to the characteristics of liability that applies to legal entities in Italy and France. It was established that there were indicators for each country separately. The main attention is paid to the characteristics of liability that applies to legal entities in Italy and France. It was established that in 2020, the ‘Maturity Model’, a set of indicators developed for each country separately as a diagnostic tool for self-assessment, measures the maturity of the investigation of tax crimes, taking into account factors such as the efficiency of law enforcement, the level of cooperation between tax authorities and other law enforcement agencies, and the effectiveness of legal measures against tax offenders. The conducted study of applying the liability of legal entities of foreign countries for tax offenses gave grounds to conclude that its main types are administrative liability (including ‘quasi-criminal’) and criminal liability. The following prerequisites for the commission of tax offenses by legal entities are highlighted: imperfect policy on fighting corruption and fraud at the state level, which may include inadequate resources for enforcement, lack of transparency in government operations, or ineffective anti-corruption measures; loopholes in tax legislation, which became the impetus for the development of the shadow economy and, accordingly, the concealment of profits by legal entities, often by prior agreement; lack of a joint financial register of illegal financial flows; an inadequate system of sanctions against intermediaries who help legal entities avoid paying taxes and commit tax fraud.

The Role of Accounting Information Technology in Reducing Tax Evasion: an Applied Study on a Sample of Employees of Tax Departments in Middle AL -Furat AL –Awsat

The current research aims to measure the role of accounting information technology represented by (Perceived benefit, ease of use) in reducing tax evasion represented by (Fair distribution of tax burden, penalties and penalties, combating tax evasion, employees efficiency, economic conditions) among a sample of employees of tax departments in the Middle Euphrates region, the research has stood on an important problem, which was formulated under the question of the research (What is the role of accounting information technology in reducing tax evasion?), In order to address the problem, two hypotheses were formulated, and the research relied on the descriptive analytical approach in measuring, describing and analyzing the research variables, and the research relied on the questionnaire tool in collecting the necessary data, As (150) questionnaires were distributed to the concerned tax department employees, and (137) questionnaires were retrieved, with (129) questionnaires valid for analysis and (8) damaged questionnaires. To analyze the results, the (SPSS&AMOS) package was used (V.28). The research summarized several findings, foremost of which was that accounting information technology has an impact in reducing tax evasion. Additionally, there is a high degree of use of accounting information technology in improving the capabilities of tax department employees in the Middle Euphrates region to reduce tax evasion. The research recommends the use of modern accounting information methods and techniques to combat tax evasion and ensure timely payment of taxes in the right place.

Determinants of Tax Compliance Behavior: A Case Study in Ethiopia

Policymakers and tax authorities in developing countries face challenges in comprehending the determinants of tax-compliance behavior. This study employs empirical investigation to explore the factors that influence taxpayers’ voluntary and enforced tax compliance behaviors. Data were collected through a survey questionnaire distributed to 400 taxpayers using simple random sampling and analyzed using an ordered logit model. The results validate the assumptions of the slippery slope framework, showing that trust significantly impacts voluntary tax compliance and that a strong tax authority’s power contributes to more enforced tax compliance in Ethiopia. Additionally, the interaction between trust and power has a more significant effect on enforced tax compliance. This study also emphasizes the importance of improving trust in increasing tax compliance. Moreover, factors such as equity, fairness, tax knowledge, effective tax usage, and taxpayer morale contribute to tax compliance. By identifying factors that contribute to tax compliance, the findings of this research provide valuable insights for tax authorities in Ethiopia and other developing countries in devising strategies to combat tax evasion. This includes implementing a fair tax regime, enhancing the perceived value of public services financed by tax payments, increasing tax knowledge activities to help people understand the importance of paying taxes, and fortifying frameworks to minimize extravagant spending for maintaining public trust and ensuring effective and efficient use of taxpayers’ money.

RO e-VAT, the IT System of National Strategic Interest for Combating Tax Evasion and Fraud

RO e-VAT, the IT System of National Strategic Interest for Combating Tax Evasion and Fraud

Issues of Tax Integration in the Practice of the Court of the Eurasian Economic Union: Commentary on the Advisory Opinion on the Case CE-2-1/1-22-БК2

Introduction. Economic and political processes in integration associations are accompanied by the convergence of the legal systems of their Member States. The area of harmonization, which is both important from the point of view of the formation of the internal market (indirect taxes) and sensitive from the point of view of sovereignty (direct taxes), is the sphere of taxation. Despite the long-term work on the harmonization of legislation on taxes and fees within the framework of the EAEU, there are still many issues that need both interstate and national settlement. Methods. The methodological basis of the research was made up of general scientific methods of cognition: analysis, synthesis, abstraction, induction, deduction, analogy, modeling, systemic, as well as private scientific methods – the formal legal method and comparative legal method. Results. The authors refer to the practice of the EAEU Court as a supranational judicial body with the authority to resolve disputes on the application of the sources of the EAEU law, as well as to clarify their provisions. Cross-border tax issues may become the subject of research by the EAEU Court, including in the procedure for the implementation of advisory competence. The acts of the EAEU Court allow not only to resolve the dispute, but also to eliminate possible conflicts in law, as well as the inconsistency of its understanding. The growing role of Court acts is noted precisely as acts of interpretation, which is shown by the examples of advisory opinions on tax disputes. The article examines the basic principles of collecting indirect taxes on the export and import of goods and services on the example of the advisory opinion on the case CE-2-1/1-22-БК, as well as comparisons with earlier cases considered by the EAEU Court, in which tax issues were raised. The connection of the considered problems with the concept of tax sovereignty is noted. Defining the boundaries of the circle of taxable persons is related to the tasks of national policy, including such as combating tax evasion and protecting the national fiscal base. Discussion and Сonclusion. In the course of the study, the authors come to the conclusion that the EAEU Court does not have the authority to determine the order of execution of the decision, as well as to apply interim measures, at the same time, the countries themselves participating in the integration association impose on law enforcers the obligation to adhere to the principles of maintaining confidence in the Treaty on the EAEU.

Personality Traits and Tax Evasion Attitude: The Moderating Role of Religiosity

Tax evasion remains a significant issue despite regulatory improvements, with informal sectors, income underreporting, and corruption contributing to the problem. Studies typically focus on economic factors but overlook non-economic influences, such as psychological factors, social norms, and religion. This research explores the impact of religiosity on tax evasion, particularly how it affects the relationship between personality traits and tax evasion behaviors. Using a sample of 443 individuals from salaried and self-employed backgrounds, the study employed survey methodology to gather data. The results of analysis revealed that personality traits like conscientiousness, openness to experience, neuroticism, agreeableness, and extraversion significantly influence tax evasion attitudes. Conscientiousness particularly affects self-interest tax evasion, while religiosity moderates the relationship between extraversion and self-interest tax evasion and between conscientiousness and justice of system tax evasion. The findings suggest that incorporating religious values into tax policy could help reduce tax evasion. Policymakers are advised to enhance tax compliance by promoting tax awareness through educational programs, emphasizing community benefits, and collaborating with religious scholars to foster ethical tax practices. The study underscores the importance of considering religiosity and personality traits in developing strategies to combat tax evasion, especially in developing countries.

Leaders’ capabilities and organizational efficiency: Evidence from the national taxation bureaucracy in China

Tax authority leaders have a significant impact on organizational efficiency, which is mainly manifested in tax collection efficiency. Based on provincial tax administrative data and data on listed companies from 1998 to 2017, we examine the impact of the capabilities of leaders of the National Taxation Bureaucracy (NTB) on tax collection efficiency. We adopt the fixed effects approach and isolate the individual effects of NTB directors as a proxy of leaders’ capabilities. We find that directors with stronger capabilities enhance tax revenue growth and complete tax revenue tasks by affecting corporate income taxes. The findings suggest that more capable directors are found to severely combat tax evasion and avoidance. Specifically, taxable income approved by the NTB, preferential tax policies and tax auditing have been used to combat tax evasion. We also clarify the boundaries of leaders’ capabilities. We provide supportive evidence for leaders’ individual impact on tax collection efficiency and enrich the study of tax collection and administration.

Comparative Analysis of Ethical Measures and Auditing Standards in Managing Tax Evasion: Effectiveness and Impact

This article presents a comparative analysis of the effectiveness and impact of ethical measures versus auditing standards in managing tax evasion. Tax evasion poses significant challenges for both businesses and governments, leading to economic losses and reputational damage. This study investigates two primary strategies for combating tax evasion: the implementation of ethical policies within organizations and the enforcement of auditing standards by regulatory bodies. By evaluating existing literature and empirical data, the article assesses how each approach influences tax compliance and their relative effectiveness. The research design is validated for its reliability in testing the hypotheses and provides consistent results supported by a literature review of existing scholarly work. The research reveals that while both ethical measures and auditing standards are crucial in addressing tax evasion, ethical practices tend to offer more substantial benefits in fostering long-term tax compliance. Enhanced by technological advancements, the auditing process has become more efficient, yet it often encounters resistance and limitations. The findings suggest that integrating strong ethical frameworks within businesses, alongside rigorous auditing practices, is the most effective strategy for managing tax evasion. The study provides valuable insights for policymakers and organizations seeking to improve tax compliance and reduce evasion.

Procedure for coordination of legislative norms of financial and tax law within the framework of public law regulation

The article explores the peculiarities of harmonizing legislative norms of financial and tax law within the framework of public legal regulation. It is established that the norms of financial and tax law shape the rules for managing the financial system and taxation, contributing to a balance between the state’s needs for financial resources and the preservation of economic stability for citizens and businesses. The demarcation of norms of financial and tax law by the subject of regulation is characterized, emphasizing the common method of legal regulation. It is determined that the norms of financial law regulate budgeting, financial planning, state debt, financial accounting, financial stability, and additional sources of funding. Norms of tax law cover tax rates, tax incentives, tax accounting and reporting, and combating tax evasion. It is noted that due to the common features and subject of legal regulation, conflicts arise between the norms of financial and tax law. It is established that the public legal regulation of conflicts between the norms of financial and tax law involves a systematic and organized process aimed at harmonizing legislative norms and resolving conflicts through the activities of the executive authorities of Ukraine. The competencies of central executive authorities that contribute to the harmonization of norms of financial and tax law are characterized. It is determined that the Cabinet of Ministers of Ukraine, the Ministry of Finance, the State Tax Service, the Ministry of Justice, and the National Bank of Ukraine play a key role in resolving conflicts and coordinating strategies in the financial and tax sectors. It is noted that central executive authorities coordinate and cooperate for systematic conflict management and the achievement of harmony in financial and tax legislation. The efficiency of harmonizing norms of financial and tax law is ensured by creating an Interdepartmental Committee, conducting consultations and discussions, as well as adopting and implementing harmonized subordinate legislative acts. Attention is drawn to the fact that the effectiveness of harmonizing norms of financial and tax law is determined by the efficiency of the procedure for developing harmonized subordinate legislative acts conducted by central executive authorities.

Comparative Study of Law Enforcement Against Taxation Crimes in Indonesia and Malaysia

This research conducts a comparative study of law enforcement strategies aimed at combatting taxation crimes in Indonesia and Malaysia. The study examines the legal frameworks, enforcement mechanisms, and institutional capacities of tax authorities in both countries. Through an analysis of relevant laws, regulations, and enforcement practices, the research evaluates similarities and differences in approaches to tackling tax evasion, fraud, and non-compliance. Additionally, the study explores the role of collaboration between tax authorities and other government agencies, as well as international cooperation in addressing cross-border tax crimes. By identifying effective strategies and areas for improvement in law enforcement against taxation crimes, the research aims to contribute to the development of more robust and coordinated efforts to combat tax evasion and ensure compliance with tax laws in Indonesia and Malaysia.

LEGAL FRAMEWORKS AND TAX COMPLIANCE IN THE DIGITAL ECONOMY: A FINANCE PERSPECTIVE

In the wake of rapid digitalization, the landscape of commerce has undergone a profound transformation, presenting unprecedented challenges to traditional tax systems and legal frameworks. This abstract examines the evolving dynamics of tax compliance within the digital economy through the lens of finance. The digital economy encompasses a broad spectrum of economic activities facilitated by digital technologies, including e-commerce, digital platforms, and virtual currencies. These innovations have blurred the boundaries of traditional tax jurisdictions, leading to complexities in determining tax liabilities and enforcement mechanisms. As such, the adequacy of existing legal frameworks in addressing tax challenges posed by the digital economy has come under scrutiny. From a finance perspective, ensuring tax compliance in the digital economy involves understanding the intricate interplay between technology, business models, and regulatory frameworks. Digital businesses often operate across multiple jurisdictions, exploiting loopholes and jurisdictional discrepancies to minimize tax obligations. Such practices have raised concerns regarding tax fairness and the erosion of tax bases, prompting policymakers to explore new regulatory approaches. One key aspect of addressing tax compliance in the digital economy is the development of international cooperation and coordination mechanisms. Given the transnational nature of digital transactions, effective tax enforcement requires collaboration among countries to combat tax evasion and profit shifting. Initiatives such as the Base Erosion and Profit Shifting (BEPS) project by the OECD seek to establish common standards and guidelines for taxing digital businesses. Moreover, the emergence of innovative technologies, such as blockchain and artificial intelligence, presents both opportunities and challenges for tax authorities. While these technologies offer potential solutions for enhancing tax administration and enforcement, they also introduce new complexities, such as the anonymity of transactions and the difficulty of tracking digital assets. Navigating the complexities of tax compliance in the digital economy requires a multifaceted approach that integrates legal, technological, and financial perspectives. By fostering international cooperation, leveraging technological innovations, and adapting regulatory frameworks, policymakers can mitigate tax challenges and promote a fair and sustainable tax system in the digital age.
 Keywords: Tax, Digital Economy, Finance, Legal, Review.

LEGAL FRAMEWORKS AND TAX COMPLIANCE IN THE DIGITAL ECONOMY: A FINANCE PERSPECTIVE

In the wake of rapid digitalization, the landscape of commerce has undergone a profound transformation, presenting unprecedented challenges to traditional tax systems and legal frameworks. This abstract examines the evolving dynamics of tax compliance within the digital economy through the lens of finance. The digital economy encompasses a broad spectrum of economic activities facilitated by digital technologies, including e-commerce, digital platforms, and virtual currencies. These innovations have blurred the boundaries of traditional tax jurisdictions, leading to complexities in determining tax liabilities and enforcement mechanisms. As such, the adequacy of existing legal frameworks in addressing tax challenges posed by the digital economy has come under scrutiny. From a finance perspective, ensuring tax compliance in the digital economy involves understanding the intricate interplay between technology, business models, and regulatory frameworks. Digital businesses often operate across multiple jurisdictions, exploiting loopholes and jurisdictional discrepancies to minimize tax obligations. Such practices have raised concerns regarding tax fairness and the erosion of tax bases, prompting policymakers to explore new regulatory approaches. One key aspect of addressing tax compliance in the digital economy is the development of international cooperation and coordination mechanisms. Given the transnational nature of digital transactions, effective tax enforcement requires collaboration among countries to combat tax evasion and profit shifting. Initiatives such as the Base Erosion and Profit Shifting (BEPS) project by the OECD seek to establish common standards and guidelines for taxing digital businesses. Moreover, the emergence of innovative technologies, such as blockchain and artificial intelligence, presents both opportunities and challenges for tax authorities. While these technologies offer potential solutions for enhancing tax administration and enforcement, they also introduce new complexities, such as the anonymity of transactions and the difficulty of tracking digital assets. Navigating the complexities of tax compliance in the digital economy requires a multifaceted approach that integrates legal, technological, and financial perspectives. By fostering international cooperation, leveraging technological innovations, and adapting regulatory frameworks, policymakers can mitigate tax challenges and promote a fair and sustainable tax system in the digital age.
 Keywords: Tax, Digital Economy, Finance, Legal, Review.

Corporate tax evasion offences evidence collection in the context of Kazakhstan

Relevance. The research relevance is determined by further expansion of the theoretical understanding of offences related to tax evasion by organisations in Kazakhstan given the scale of this phenomenon. Purpose. The research aims to characterise the offences of corporate tax evasion in Kazakhstan from the point of view of the definition of the offence, the specifics of proof and criminological characteristics. Methodology. The statistical analysis, analogy, and generalisation methods, as well as formal-legal and formal-logical approaches, were used in the article. Results. The peculiarities of proving such offences were revealed, and recommendations for its improvement directly in the Republic of Kazakhstan were offered. The issue of timely completion of investigation of offences following Article 245 of the Criminal Code of the Republic of Kazakhstan (CC RK) was analysed in detail. The features that increase the danger of tax evasion are highlighted, among which particular attention is devoted to tax evasion using organisations operating in offshore zones and tax evasion using specially created organisations to avoid payments to the country�s budgets. The study also delved into the analysis of existing opinions and concepts of scientists concerning this issue. The study of different points of view allowed for a deeper understanding of the complexity of this phenomenon and possible ways to counteract tax evasion. Conclusions. In conclusion, this article underscores the complexity and significance of corporate tax evasion offences in Kazakhstan, emphasizing the necessity for enhanced methods of evidence collection and proof. The findings highlight the critical need for improved investigative processes, particularly concerning organizations operating in offshore zones and those specially created to evade taxes. By addressing these issues, the research provides valuable insights and recommendations for strengthening the legal framework and enforcement mechanisms to combat tax evasion effectively in Kazakhstan. Keywords: pre-trial investigation; investigation and evaluation of evidence; tax liability; criminal liability; criminological characterisation

Integration of legislation on countering tax crimes in the EU: opportunities and limitations

The subject. The article examines the norms of the current tax and criminal legislation of the EU, the experience of which in the future may be in demand in the process of integrating the legal regulation systems of the EAEU states when developing issues of countering tax crimes. The subject of the article is to analyze the problems of: methodology of tax crime research in the EU and data sampling criteria; integration of national tax systems; definition of tax crime in the EU; spread of VAT fraud.Modern law enforcement practice is analyzed using the system-logical method, which indicates the complication of forms of tax evasion and concealment of actual financial and economic transactions.The main results. It is noted that the need for effective law enforcement to ensure the financial stability of states, to counteract distortions of competition resulting from tax evasion is due to the organized and highly structured nature of a significant part of tax crimes, the expansion of the scale of cross-border tax crimes involving foreign elements. The European legislation does not contain a definition of a tax offense as such, but contains a list of types of behavior with specific descriptions of prohibited behavior. It seems that national legislators deliberately preserve a certain amount of ambiguity between prohibited and permitted tax evasion, offering a broad definition of tax evasion, since narrow specifics in the definition of such offenses can lead to undesirable impunity, exclude a flexible approach in responding to changes in this area of legal relations.As a result of the application of the formal legal approach and comparative analysis, conclusions were obtained that, subject to careful preliminary research and practical verification, successful decisions in the field of combating tax evasion and tax fraud adopted in some jurisdictions can be used to improve the legislative provisions of other states.

К ВОПРОСУ РАЗВИТИЯ ИНСТИТУТА «НАЛОГОВАЯ ОТВЕТСТВЕННОСТЬ» В УСЛОВИЯХ ПОСТРОЕНИЯ ЦИФРОВОЙ ЭКОНОМИКИ

The article is devoted to the analysis of the institution of tax liability, determining its place in the system of legal liability. According to the authors, an effective tax liability system contributes to ensuring the collection of tax revenues and the stability of the socio-economic development of the state. It is emphasized that the institute of tax liability is one of the main institutions of tax law related to tax offenses. Compliance with tax legislation is an important aspect of financial discipline and civic responsibility to the state. Proper fulfillment of tax obligations contributes to the sustainable development of the economy and ensuring the financial stability of the state. The authors note that the digitalization of society and the development of the digital economy have a significant impact on the tax system of the Russian Federation. There are is-sues affecting the taxation of digital services and digital companies, including the taxation of profits from their activities on the Internet, data processing, use and protection of information, and the definition of ways to combat tax evasion in the digital sphere associated with the complication of tax liability control processes. The authors believe that in order to develop effective tax mechanisms, it is necessary to establish the legal nature of tax liability in the system of legal liability, to distinguish and de-fine its essential affiliation as an institution of administrative or financial (tax) legislation. The authors conclude that increasing the efficiency of the tax system, reducing opportu-nities for tax evasion and ensuring the fairness of the distribution of the tax burden in the con-text of digital transformation contribute to ensuring the collection of tax revenues and the sta-bility of the socio-economic development of the state.

Мобілізація внутрішніх доходів держави в надзвичайних ситуаціях: протидія розмиванню податкової бази та виведенню прибутку з-під оподаткування

Introduction. Against the background of the post-covid recovery, destroyed by the strengthening phenomena of deglobalization, fragmentation, uncertainty, conflictogenicity, considerable efforts of the member states of the European Union (EU) are aimed at provision of increased financial resources for state needs through restriction of unfair tax practices. Problem Statement. Domestic Revenue Mobilization (DRM) directs the efforts of countries to increase their own incomes and resources of domestic economy by collecting taxes, duties and other revenues. The task must be completed without additional pressure on the business environment and does not aim to increase the tax burden on small and medium-sized enterprises that have been significantly negatively impacted by the COVID-19 epidemic, the main tools of impact should be focused on combating tax evasion by multinational companies and their beneficiaries and preventing tax base erosion in Ukraine in the post-pandemic and post-war recovery period. The purpose of the article is to substantiate the fact that for Ukraine, as a candidate for members of the EU, it is important not only to implement the experience of the EU member states in limiting the ability of multinational companies (MNCs) to apply hybrid instruments for tax base erosion using international structures, but also further systemic harmonization of domestic fiscal regulation in accordance with the best practices and modern rules for the prevention of profit shifting and base erosion (BEPS), which are constantly changing within the framework of supranational norms. Methods. The methods of system-structural analysis, retrospective analysis, analytical, systematization, comparative, dialectical and formal logic were used. Results. The crisis period of post-Covid recovery has become more complicated by the armed invasion of the Russian Federation on the territory of our country, which requires a search of internal revenue mobilization mechanisms to solve current state obligations, as well as for the formation of economic and epidemiological security of the state in the period of post-war recovery for the sake of preservation of socio-economic development and formation of reliable nation’s health care system. Conclusions. The introduction of reporting on controlled transactions, CIC, as well as tax payment by jurisdiction (Country by Country reports) is a progressive step in the direction of overcoming the asymmetry of tax information at the global level. For the effective implementation of all mentioned tools after the accession of the country to the Multilateral Agreement on Competent Authorities (MCAA CRS), it is necessary to focus efforts on the regulatory framework for the implementation of European directives, such as ATAD I and II, the implementation of the provisions of DAC7 for the control of digital activities and inclusion in the exchange information on income from intellectual property in the digital economy, as well as the formation of institutional conditions for the implementation of Pillar 1 and 2 at the national level.