Digitization and Globalization of the Tax Administration System as a Driver of Innovative Development
Authors:   State Tax University, Izmailov Yaroslav O. , Yegorova Iryna G. ,   State University of Economics and Technology, Barytskyi Roman O. ,   State Tax University
Published: September 2024

The aim of the article is to identify the problems and prospects of digitization and globalization of services in the tax administration system as components of drivers of innovative development. It is substantiated that under the influence of military operations, internal and external factors, there has been a determination of awareness of the role of the digital economy as a tool for globalization, which defines the choice of such development priorities as investment and innovation cooperation and digitization of social relations at the macro and micro levels. The formation of the information society on the basis of digitization will ensure the subordination of economic growth to the qualitative parameters of social and economic development, because further progress will be determined not so much by the production of goods as by the expanded use of information in the context of digitization. The main problems of digitization and globalization of tax administration in Ukraine are identified and systematized. Among them, the main ones are: the ongoing war, unpredictable changes in government policy, and other risks of long-term digital technology projects; corruption; resistance to change on the part of government officials, employees of the State Tax Service and taxpayers; lack of information work on the benefits of digitization and globalization with taxpayers and the public, as well as specialized training among employees of the State Tax Service; shortage of qualified tax officers, as well as specialists in the field of digital technologies; concentration of taxation not on the identification of reserves for tax incentives, but on the collection of taxes; technological risks of malfunction or failure in new systems, especially in the early stages of their implementation; cybercrime risk; bureaucratic procedures and imperfection of legislation on digital technologies, personal data of citizens and the implementation of international legislation. It is proved that the vector of the strategy for solving the existing problems in tax administration should go through digitization, digitalization and computerization of relations between the State and citizens, taking into account the modern global experience of the developed countries of the world in this area. The strategic priorities that will ensure the development of digitization and globalization of tax administration are presented in a systematized form, which, in turn, will have a positive impact on the innovative development of the country as a whole. It is substantiated that the main ways to ensure the development of digitization and globalization of tax administration are: 1. Improvement of national legislation and implementation of international legislation on digitization and globalization of tax relations. 2. Integration of international standards of digital technologies and ensuring the safety and illegal non-distribution of personal data of citizens. 3. Fighting corruption at all levels of government while restarting the judiciary to protect rights and increase taxpayers’ confidence. 4. Formation of a comprehensible strategy and tactics for the development of digitization and globalization of tax administration, harmonious with systemic international trends. 5. Gradual reduction of the tax burden and creation of a system of computerized independent clear tax control. 6. Building public trust and support, as well as cooperation with international organizations and businesses. 7. Promoting the development of tax and digital culture among citizens, especially children. 8. Clear and balanced reform of the State Tax Service and other regulatory authorities to improve the tax system of Ukraine and ensure the stability of the country’s finances. 9. Formation and implementation of a set of tax incentives to expand business activity. 10. Anti-corruption measures and openness of the work of the State Tax Service. 11. Continuous training and development of the State Tax Service staff. 12. Providing conditions for digitization and digitalization of relations between the State and citizens. The presented problems and proposals of digitization and globalization of the tax administration system create the basis for further research in the direction of improving the methodology and organization of the tax system.