Existing Problems in the Organization of Tax Administration and Ways to Overcome Them

Abstract

Tax administration is one of the most important components of an effective public finance system because it determines not only the volume of tax revenues collected by the state budget but also the quality of interaction between taxpayers and tax authorities. An efficient tax administration system creates the institutional conditions necessary for ensuring stable budget revenues, reducing the shadow economy, improving voluntary tax compliance, and strengthening taxpayers’ confidence in public institutions. In contrast, weaknesses in tax administration may result in incomplete tax collection, accumulation of tax arrears, inefficient use of administrative resources, increased compliance costs, and a deterioration of relations between taxpayers and tax authorities. Therefore, improving the organizational and institutional mechanisms of tax administration remains an important priority for economic policy.[1]