Areas of Reform of the Simplified Taxation System in the Context of Minimising Tax Evasion in Ukraine

Abstract

Abstract. The purpose of the article is to develop and justify a set of measures to reform the simplified taxation system of accounting and reporting in order to minimise tax evasion. Methodological basis. The research uses a combination of general scientific and special methods of cognition, in particular, methods of analysis and synthesis, induction and deduction, systemic and structural-functional analysis, comparative legal method, as well as institutional and risk-oriented approaches. The empirical basis of the study was formed on the basis of an analysis of the norms of Ukrainian tax legislation, the provisions of the National Revenue Strategy until 2030, scientific publications by domestic and foreign authors, and a generalisation of the practice of the simplified taxation system. Research results. The article identifies key tax evasion schemes implemented through institutional features of the simplified system. It substantiates the inexpediency of radically abolishing the simplified system under martial law and proves the need to transform it by reducing opportunities for abuse. A set of measures for reforming the system is proposed, covering the revision of taxpayer groups and criteria, the improvement of risk-oriented fiscal administration, the introduction of incentive tools for conscientious taxpayers, and the strengthening of financial liability for intentional and repeated tax offences. It is concluded that the implementation of the proposed set of measures will increase the transparency and fairness of the tax system, reduce the level of shadow economy activities of small businesses, and ensure a balance between the fiscal interests of the state and the development needs of microbusinesses. It is argued that the effectiveness of reforming the simplified taxation system is determined not by individual changes in rates or criteria, but by a comprehensive combination of institutional, administrative and incentive mechanisms.