Tax Security of the State: Mechanisms of Assurance and Directions for Strengthening under Conditions of Global Instability

Abstract

The article explores tax security as a key component of a state's financial security, ensuring the stability of the budget system and the state's ability to effectively counter internal and external threats in the fiscal domain. It outlines contemporary mechanisms for ensuring tax security, including regulatory and legal instruments, administrative and institutional frameworks, analytical tools, and technological solutions. The study highlights various scholarly approaches to designing an effective system of tax security, emphasizing the need to balance the stability of tax legislation with its adaptability to changes in the external environment. Debated issues include the organizational structure of the tax system, methods of tax control, and the application of digital technologies. The Corporate Tax Haven Index 2024 is analysed, revealing that the United Kingdom ranks first among jurisdictions providing the largest volume of services associated with tax avoidance by multinational corporations. Particular attention is paid to the challenges faced by Ukraine, and pathways for minimizing tax risks are proposed based on international experience—specifically, digital administration models, horizontal monitoring, and risk-based control. Horizontal monitoring is presented as a progressive approach to tax supervision, involving close cooperation between tax authorities and taxpayers. This approach is grounded in the principles of mutual trust and transparency, which helps reduce the number of audits and tax disputes, while enhancing compliance with tax obligations. The study also emphasizes the importance of international cooperation in the tax sphere, particularly within the framework of the BEPS initiative, which aims to combat cross-border tax avoidance by eliminating loopholes in international taxation, harmonizing tax rules across jurisdictions, and enhancing transparency in financial flows. The article substantiates the rationale for implementing a hybrid model that combines legislative stability, innovative technologies, and institutional reforms to build an efficient and transparent tax system capable of fostering sustainable economic development and social stability.