Combating Tax Offenses: Causes, Prevention Policy and Detection System

Abstract

This article analyzes the current issues of combating tax offenses, their underlying causes, prevention policies, and the effectiveness of the detection system. According to the research findings, the main causes of tax offenses have been identified as the high tax burden, the complexity of tax legislation, the large share of the shadow economy, and the insufficient development of tax culture. In particular, according to certain estimates, the share of the shadow economy accounts for around 20–30 percent of gross domestic product, which leads to a significant loss of tax revenues. The article also substantiates the importance of digitalization processes in preventing tax offenses, particularly the introduction of electronic invoices, online cash register machines, and automated analytical systems. According to practical data, the widespread implementation of digital tax control tools has resulted in a 15–20 percent increase in tax revenues in certain sectors. At the same time, it is emphasized that the effectiveness of detecting violations can be improved through the enhancement of tax audits, the development of a risk analysis–based control system, and the establishment of effective communication with taxpayers.