TAX MANAGEMENT FUNCTION CHALLENGES UNDER DIGITAL TRANSFORMATION
Abstract
The article focuses on the current issues related to tax management in the face of digitalization. The changes in tax interactions resulting from the development of information technologies, new opportunities, and challenges inherent in these processes are highlighted. The paper explains how important it is to transform the tax management system, especially in information processing, risk assessment, tax calculations, and tax reporting. The experience of using integrated information technologies and data exchange systems in the international exchange of tax information and other areas of tax administration is analyzed (CSR, FATCA, VAT-invoices). The impact of introducing the Standard Audit File for Tax Purposes (SAF-T) on the taxpayers' cooperation with the government has been determined, and the main benefits and limitations of this tax reporting model have been outlined. The article analyzes the domestic and foreign experience of applying integrated information technologies and data exchange systems. The problems associated with the lack of a step-by-step approach to the implementation of high-level SAF-T reporting in Ukraine are outlined. It has been noted that the lack of a coordinated and comprehensive strategy for implementation, creates tensions between diligent taxpayers and the government, since taxpayers cannot identify the benefits against the additional costs for tax administration procedures. The authors identified the challenges and contradictions between industry-specific legislation, in particular, concerning banking privacy and the requirements for submitting SAF-T in Ukraine and suggested ways to resolve them. Attention should be focused on preventing large-scale data leaks from using software solutions for information exchange developed by different companies who do not have sufficient expertise in the relevant areas. Proposals are made regarding applying the Polish and Romanian experience in introducing e-audit in Ukraine, and the priority of multilateral cooperation between the government authorities and taxpayers has been identified.
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