EFFICIENCY OF TAX AUDIT IN UKRAINE: ANALYSIS OF ITS IMPACT ON BUDGET REVENUES

Abstract

The article analyzes the effectiveness of tax audit in Ukraine and its impact on budget revenues, focusing on its role in ensuring fiscal stability. The study identifies key challenges in the tax audit system, such as insufficient legislative support, lack of qualified auditors, and the need for increased transparency. The article emphasizes the importance of digitalization in improving tax audit procedures and introduces the concept of risk-oriented approaches in tax inspection, which could significantly enhance the efficiency of audits. The research also explores the integration of international best practices, particularly those from European Union countries, in strengthening the tax control system in Ukraine. By adopting modern technologies, such as automated data analysis and real-time tax reporting, Ukraine can not only increase tax revenues but also reduce the shadow economy. Furthermore, the article examines the economic context of Ukraine, particularly the challenges posed by the ongoing war and its impact on financial stability. It highlights the need for urgent reforms to enhance the tax system's capacity to generate sufficient revenues for state functions and defense. The article argues that effective tax audits are not only crucial for increasing budget revenues but also play a significant role in ensuring a transparent and fair taxation environment, which is a critical factor for fostering economic growth and investment. A detailed analysis is provided on how the application of predictive analytics and machine learning could enhance the identification of potential risks and fraudulent activities, thus improving the overall quality of tax control. Additionally, the study emphasizes the necessity of fostering a culture of compliance among taxpayers through educational initiatives and public awareness campaigns. By creating a cooperative environment, tax authorities can encourage voluntary compliance, thereby reducing the administrative burden of audits and improving overall tax system efficiency. The research also suggests that Ukraine must allocate more resources to the professional development of tax inspectors, focusing on advanced training programs and international collaborations. Strengthening the institutional capacity of tax authorities is essential for maintaining consistency and fairness in the audit process. Finally, the article concludes that a multi-faceted approach is required to address the systemic weaknesses in Ukraine’s tax audit framework. Legislative reforms should be complemented by investments in technology and human resources to ensure a more robust and adaptable system. By integrating these measures, Ukraine can not only achieve fiscal stability but also lay the foundation for sustainable economic development in the face of ongoing challenges. The combination of advanced technologies, international practices, and a reformed legal framework will be key to maximizing the effectiveness of tax audits and ensuring the long-term resilience of the country's fiscal system.