DIGITALIZATION OF TAX ADMINISTRATION AS A TOOL FOR PREVENTING CORRUPTION

Abstract

Introduction. In the context of Ukraine’s European integration, the transformation of public administration, and the need to ensure stable budget revenues under martial law, the issue of effective tax administration acquires not only fiscal but also strategic significance. Traditionally, the tax sphere has been considered one of the most vulnerable to corruption risks due to the high level of discretionary powers exercised by supervisory authorities, the complexity of administrative procedures, the substantial volume of regulatory requirements, and the direct interaction between officials and taxpayers. Corruption within tax authorities not only reduces state budget revenues but also distorts the competitive environment, creates unequal conditions for economic activity, undermines trust in public institutions, and diminishes the overall investment attractiveness of the state. In this context, digitalisation should be understood not merely as technical modernisation or the introduction of electronic services, but as a comprehensive institutional mechanism aimed at economic de-shadowing, enhancing transparency in administration, and preventing abuses in the field of taxation.

Summary of the main research findings. The article provides a comprehensive legal analysis of the digitalisation of tax administration as an instrument for preventing corruption. It examines national legislation, strategic anti-corruption policy documents, and the practical aspects of the functioning of electronic services, including the taxpayer’s Electronic Cabinet and automated tax invoice monitoring systems. Particular attention is paid to international experience in EU countries and within the OECD, including models of “compliance by design”, electronic audit, e-invoicing, and the use of big data analytics systems. It is substantiated that digitalisation contributes to the depersonalisation of control and the minimisation of corruption risks. At the same time, it is established that digital transformation is accompanied by new challenges, including algorithmic discretion, cybersecurity risks, errors in automated decision-making, and unequal access to digital services.

Conclusions. The digitalisation of tax administration represents a key direction in the development of Ukraine’s legal system and an important element of the state’s anti-corruption policy. It ensures the reduction of the human factor, enhances transparency, and improves the efficiency of tax administration. At the same time, the effectiveness of digital instruments depends on comprehensive legal regulation, the provision of cybersecurity, the transparency of algorithms, and the safeguarding of taxpayers’ rights. Thus, digitalisation functions not only as a technical tool but also as a systemic legal instrument for the transformation of tax relations.