FORENSIC ECONOMIC EXAMINATION OF FISCAL RISKS OF TAXPAYERS: CURRENT ISSUES

Abstract

In the context of the deterioration of the financial condition of taxpayers, their tax debt is increasing which, in turn, leads to a reduction in tax revenues to the State Budget of Ukraine and an increase in the budget deficit. According to the provisions of tax legislation, taxpayers have the right to defer (installment) their monetary tax liabilities in order to properly fulfill their tax obligations. At the same time, tax authorities refuse to satisfy about 55% of taxpayers’ applications, which is caused by inconsistencies between certain regulatory legal acts and the provisions of the Tax Code of Ukraine, as well as by the imperfection of the methodology for assessing taxpayers’ financial condition. As a result, taxpayers are forced to challenge the decisions of controlling authorities in court, which actualizes the need to improve methodological approaches to conducting forensic economic examinations of taxpayers’ solvency and fiscal risks. The purpose of the article is to highlight problematic issues related to the deferral (installment) of tax debt and to substantiate the methodology for conducting an expert study of taxpayers’ cash flows in order to identify and assess fiscal risks. The methodological basis of the study includes general scientific and special methods, in particular methods of theoretical generalization, economic analysis, ratio analysis, cash flow analysis, comparative analysis, and logical generalization. The article analyzes the dynamics of tax debt administration indicators and reveals the limitations of traditional approaches to assessing taxpayers’ financial condition. A step-by-step approach to conducting a forensic economic examination of taxpayers’ solvency is proposed, which involves a comprehensive cash flow analysis to forecast the risks of accumulation or non-repayment of tax debt. The practical significance of the obtained results lies in the possibility of using the proposed methodological approach by forensic experts, the State Tax Service authorities, and courts when making substantiated decisions on the deferral (installment) of tax liabilities, which will contribute to improving the efficiency of tax debt administration and reducing the level of tax disputes.