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RESEARCH CENTER FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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Enterprise Tax Audit as an Institute of Fiscal Capacity of the Wartime Economy
Nezhyva M. O.

Nezhyva, Mariia O. (2026) “Enterprise Tax Audit as an Institute of Fiscal Capacity of the Wartime Economy.” Business Inform 9:746–746.

Section: Finance, Money Circulation and Credit

Article is written in English
Downloads/views: 0

UDC 657.6:336.22

Abstract:
The relevance of the problem is due to the transformation of the role of tax administration in the conditions of the wartime economy of Ukraine, where the stability of domestic revenues is directly related to defense financing, the provision of public services, and the formation of resources for postwar recovery. The weakening of the intensity of documentary inspections in 2020–2023 and the gradual restoration of tax control actualize the issues of the efficiency of tax audits, the development of internal tax compliance mechanisms, and the use of digital information traces. The aim of the article is to develop an economic theory of corporate tax audit as an independent institution of fiscal capacity and to form a toolkit for its measurement and empirical verification. Methods of economic modeling, institutional, comparative, and legal analysis, as well as methods of cause-and-effect analysis, are used. The theoretical basis is the Allingham – Sandmo – Yitzhaki approach to tax behavior, supplemented by internal tax control and digital traceability of transactions, and the logic of the Spence signal model. The relationship between the intensity of State tax audits, the quality of internal tax control of enterprises, the digital information footprint, tax behavior and access to external financing is examined. Based on the results of the study, a model was formed in which the tax audit performs three interrelated functions: error correction, accumulation of compliance capital and signaling the quality of the tax function for capital suppliers. The possibility of partial interchangeability of traditional audits with digital monitoring is substantiated, while the audit retains an additional signaling function. It is found that a decrease in the institutional capacity of tax control can increase the differentiation of tax behavior of enterprises depending on the quality of their internal control, digital traceability and the need for external financing. Scientific novelty is proved through the integration of the effects of deterrence, error correction and signaling into a single economic model of corporate tax audit and the development of a 4C model for assessing the tax function. A Key Tax Quality (KTQ) index is proposed, covering Compliance, Control, Cost and Confidence, as well as a system of hypotheses H1–H4 and corresponding designs for their empirical testing. It is proposed to focus tax audits on segments with low digital traceability, use the proved quality of the tax function in risk-based selection of taxpayers, develop mechanisms for «white business», and use KTQ as an information tool for assessing tax risks and supporting enterprises’ access to financing for the recovery of Ukraine.

Keywords: taxation; control; tax audit; fiscal capacity; digitalization of tax administration.

Tabl.: 3. Formulae: 5. Bibl.: 31.

Nezhyva Mariia O. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Financial Analysis and Audit, State University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]

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