Prevention of evasion of taxes, fees (mandatory payments) in Ukraine: foreign experience

Abstract

Evasion of taxes, fees (mandatory payments) is a pressing issue for any country worldwide. Neglecting to address evasion of taxes, fees (mandatory payments) leads to negative trends in the socio-economic sphere, including violations of fair competition, increased corruption, inadequate funding of government expenditures (inter alia, in defense and social sectors), and capital outflow, etc. This article explores prevention and deterrence strategies for evasion of taxes, fees (mandatory payments), aiming to mitigate its detrimental consequences through preventive measures and leveraging international experience.

The article explores international experience in preventing evasion of taxes, fees (mandatory payments) and its implementation in Ukrainian legislation

Emphasizes the importance of enhancing cooperation between countries through legal reporting and information exchange, implementing streamlined and efficient operational procedures, utilizing extended collaboration mechanisms such as joint operations and working groups, and fostering a culture of cooperation at all levels.

It argues that effective fiscal policies and controls are key to preventing evasion of taxes, fees (mandatory payments) in order to determine practical solutions, which essentially lead to the minimization its risks and ultimately eradicating this phenomenon.

It further asserts that preventing evasion of taxes, fees (mandatory payments) primarily entails implementing mechanisms to prevent the negative consequences of this phenomenon through the application of preventive measures. The article emphasizes that prevention and control are the most effective measures to prevent and combat evasion of taxes, fees (mandatory payments), and emphasizes the importance of considering international experience in these matters.

The article notes that the absence of a unified approach among authorized government bodies is a distinctive aspect of preventing evasion of taxes, fees (mandatory payments). In this connection, it is desirable to use and implement the foreign experience, which has already shown positive practical results.