NECESSITY OF DEVELOPING AN INSTITUTIONAL ENVIRONMENT FOR MODERNISING THE TAX SYSTEM IN THE FACE OF FINANCIAL INSTABILITY

Abstract

The relevance of the study is determined by the need to develop the institutional environment for reforming the tax system of Ukraine in conditions of financial instability. The tax system is a leading component of financial support and stability of the country's economy and therefore requires special management approaches. The article is aimed at substantiating the theoretical and practical aspects of the development of the institutional environment as the basis for the modernization of the tax system of Ukraine in the context of modern challenges. The study was carried out on the basis of a system of methods of induction, deduction, analysis, synthesis, graphic method and generalization. The main hypothesis of the study is the complex environment of the functioning of the tax system under the influence of a complex of influence factors. The presented analytical results confirm the hypothesis and determine the list of problematic issues. In particular, the tax system of Ukraine in crisis conditions demonstrates stability, but this is mainly achieved through emergency and external financing. Its structural weakness is manifested in the instability of tax revenues in wartime, in particular due to the temporary loss of part of economically active territories and enterprises, an increase in the level of tax burden, problems of tax and fee administration, tax evasion, insufficient institutional trust between the state and the taxpayer, which negatively affects tax discipline. The originality of the study is realized through a systematic analysis of the tax system and the basic processes of tax administration, which provides an adequate assessment of its current state, as well as identifying trends in advanced foreign experience in the field of transformation of tax systems through institutional mechanisms. The scientific novelty lies in the declared key strategic institutional vectors of modernization of the tax system. Prospects for further research are determined by the detailing of measures and selection of effective tools for the formation and functioning of the institutional environment for the modernization of the tax system of Ukraine.