DEVELOPMENT OF THE STATE TAX SERVICE OF UKRAINE: EFFICIENCY ASSESSMENT, CHALLENGES, AND GLOBAL TREND

Abstract

This article provides a comprehensive analysis of the reform process of the State Tax Service of Ukraine in the context of improving its efficiency and adapting to international standards. The key shortcomings of the current tax administration system are examined, including a high level of bureaucratization, significant corruption risks, insufficient digitalization of processes, difficulties in interaction between tax authorities and taxpayers, and the low efficiency of tax control. The focus is placed on the modern challenges facing the tax service, including the need to optimize tax administration, ensure transparency of tax procedures, reduce administrative pressure on businesses, and improve voluntary tax compliance. Within the study, a comparative analysis of successful tax authority reforms in the European Union, the United States, Canada, and Singapore was conducted. Effective approaches to tax process automation, combating tax evasion, implementing risk-based tax control models, and stimulating voluntary tax compliance have been examined. Based on the obtained data, specific ways to improve Ukraine’s State Tax Service are proposed, including the introduction of modern information technologies, a shift to a proactive service-oriented approach in taxpayer interactions, simplification of tax reporting mechanisms, and strengthening the institutional capacity of tax authorities. The research results can be used for further improvement of the tax administration system in Ukraine, increasing the efficiency of tax policy, and creating favorable conditions for economic development. Ukraine can adopt several positive practices: developing user-friendly electronic tax administration platforms, as seen in Germany and Singapore; introducing unified tax declarations, which have proven effective in Scandinavian countries; conducting educational campaigns to build trust in the tax system; and utilizing modern algorithms to minimize tax evasion. These measures can not only enhance the efficiency of the tax system but also improve its perception among citizens and businesses.