TAX INTEGRITY AS A FACTOR IN ENSURING THE TAX SECURITY

Abstract

The article examines category of tax integrity that is interpreted in national legislation, academic literature, and international sources. The importance of integrity in tax relations is significant, as it strengthens public trust in state institutions, reduces tax evasion and corruption risks, improves the efficiency of the tax system by ensuring stable budget revenues, and contributes to sustainable development by supporting the financing of social and economic programs through fair tax administration. Based on the analysis of domestic legislation, academic studies, and international sources, it is established that tax integrity in Ukraine is primarily considered a legal category that ensures transparency in tax administration and fosters taxpayers’ trust, while international approaches emphasize ethical standards, tax mo-rale, and good governance. This concept integrates legal, economic, and ethical dimensions and is essential for building an effective and fair tax system. The proper compliance with tax rules by all participants in tax relations enhances tax security, whereas lack of integrity leads to the accumulation of tax debt, the expansion of the shadow econ-omy, and a decline in the level of tax agreement and payment. Integrity in tax administration and compliance combines both the adequacy of budget revenues and the protection of taxpayers’ rights. At the same time, strengthening tax integrity requires a clear distinction between “legitimate tax optimization” and “non-compliant behavior” based on the use of illegal schemes. It is determined that tax integrity in Ukraine is shaped by both institutional and economic factors and remains vulnerable to crisis conditions. Despite improvements in tax administration efficiency, the persistence of signif-icant tax debt and the decline in voluntary tax compliance indicate the need to strengthen incentives for compliant tax-payer behavior, improve control mechanisms, and enhance transparency in interactions between the state and business. Increasing the level of tax integrity is a key prerequisite for strengthening the tax security of the state and ensuring the stability of budget revenues.