Problem

Annual public opinion polls show that citizens perceive tax authorities as corrupt organizations. At the same time, there has been a positive trend in this field in recent years, as respondents note a decrease in the level of corruption at these agencies. However, continued improvement of taxation in this area involves eliminating the flaws of tax legislation, as some of its provisions are complex and non-transparent, which gives rise to manifestations of corruption. This is due to the fact that in some cases the legislation provides tax officials with a wide range of discretion.
In particular, a number of subjective factors influence the exercise of powers by officials, since, given the lack of clear legal limits of discretion, the final resolution of a particular situation is often influenced by such factors.
At the same time, Ukraine ranks 130th in the economic freedom ranking among the countries of the world and 122nd in the corruption perception ranking. Senior fiscal officials are periodically named in criminal cases involving various abuses. The state has accumulated significant debts to businesses and has a history of imposing unjustified fines. At least half of the taxes received by the state in the form of payroll taxation are withheld from the salaries of persons financed from the state budget and state-owned enterprises. Relations with tax authorities can be a decisive factor in gaining a competitive advantage in the business environment. It is critical to introduce a set of changes that will reduce corruption risks, discretionary powers of the authorities and guarantee that the state fulfills its obligations to entrepreneurs.