MODERN TRENDS IN THE DIGITALIZATION OF TAXATION PROCESSES IN UKRAINE IN THE CONTEXT OF FRAUD PREVENTION

Abstract

This research is extremely important as it examines the digital transformation of Ukraine's tax system in the era of information technologies, where digitalization priorities have become mandatory for building a competitive economy. The study analyzes how tax institutions are increasingly utilizing digital technologies to effectively perform their functional duties across four key areas: ensuring equal conditions and reducing the shadow economy, improving the business environment, enhancing the tax system through expanded digital fiscal frameworks, and fostering economic transparency. The research reveals the paradoxical dual nature of technological development in taxation, where digital advancement simultaneously shrinks the shadow sector through improved tax control while potentially expanding it in uncontrolled activities. The study demonstrates how digitalization facilitates fiscal services in systematizing information across tax system units, enabling better detection of tax avoidance and evasion, ultimately achieving a compromise between tax efficiency and fairness through the synergistic potential of mobile, social, cloud, Internet of Things, and data analytics technologies. A comprehensive analysis of digitalization's advantages and disadvantages reveals significant benefits including fast data access, improved government employee efficiency, high-quality data processing, and reduced bureaucratic processes, while acknowledging challenges such as lengthy digitization processes, system reliability dependence, employee upskilling needs, and cybersecurity risks. The study identifies three key areas of Ukraine's tax digitalization: Electronic Taxpayer Accounts providing personalized secure interactions, Software Payment Transaction Recorders replacing traditional cash registers, and VAT Information Exchange Systems facilitating international tax cooperation aligned with EU standards.