Consequences of tax avoidance

Artiukh Oksana
D.Sc. (Economics), assistant professor, Odessa National Economic University, Odesa, E-mail: oksana_art_2017@ukr.net

Chernyshova Ludmila
Candidate of Economic Sciences, Associate Professor, Odessa National Economic University, Odesa, E-mail:liylek196322@gmail.com

Li Dennis
3rd year student of the Faculty of Management, Accounting and Information Technologies, Odessa National Economic University, Odesa, E-mail: denis.bazarov.2014@gmail.com

Cite this article:

Artiukh O., Chernyshova L., Li D. (2021) Consequences of tax avoidance. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Naslidki uhilennya vid splati podatkiv; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (288-289), pp. 96-100.

Abstract

The purpose of the article is to study the nature of tax evasion, the motives for committing an economic crime by enterprises and individuals in Ukraine. The main research methods were general scientific approaches to the definition of the essence, methods deduction and induction, comparison, generalization, etc. The main methods of tax avoidance and tax evasion are determined. The ways of counteracting this phenomenon in the Ukrainian legislation are analyzed. In the course of the work, the activities of the authorities over the course of 30 years and their methods of regulating the shadow economy sector were analyzed, and a tendency to a growth of the level of the shadow economy during the COVID-19 pandemic was observed. Assumptions are given about additional investment by the government in many areas, if tax payments were received in full to the budget of Ukraine. Comparative characteristics of the fight against tax evasion in different years of Ukraine's independence are given. It has been determined that for the last 8 years there has been a positive trend towards a decrease in the part of the shadow economy, except for the years of the pandemic. The problem of simplified taxation of individual entrepreneurs in Ukraine, namely the Single Tax, is considered. Assumptions are made about the ways of non-payment of the Unified Social Tax (UST) by entrepreneurs. Significant advantages of the new government are named. So, thanks to the digitalization of many documentary registers, the number of crimes with value added tax (VAT) has decreased significantly, and the complexity of the implementation of the fraud has increased many times.The problem with the withdrawal of capital to offshore zones, which negatively affects the Ukrainian economy, is named. Possible solutions to these problems are proposed. An assessment of their effectiveness is given. It is concluded that the experience of foreign countries can also be used. The practical significance is manifested in the implementation of given advices in tax legislation, which will reduce the level of "shadowing" of the economy and increase possible budget revenues.

Keywords

tax evasion, shadow economy, withdrawal of profits from taxation, tax fraud, tax optimization.

JEL classification: H260

UD classification: 336.225.678:341.233.1

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