Prevention of Tax Criminal Offences as a Factor in the Financial Stability of the State
Abstract
Effective counteraction to tax offences strengthens the financial stability of the state and ensures the filling of the state budget. The aim of the research is to compare the effectiveness of measures to prevent tax offences, applied separately and in combination, using the example of developed economies and developing countries. The research employed correlation, regression analyses, and mediation testing. The study found that the introduction of innovative technologies in the tax sphere can increase the efficiency of detecting tax offences and reduce tax evasion. The effectiveness of the use of Artificial Intelligence (AI), electronic invoice mechanisms, Robotic process automation (RPA), Application programming interfaces (API), Cloud computing was confirmed. The impact of AI and electronic invoice mechanisms is mediated by the efficiency of tax audits, where these technologies can be useful for automation, increasing accuracy and scalability. It is proven that the effective implementation of technologies also depends on the amount of expenses incurred, as well as investment in infrastructure and human resources (HR). The findings may be useful for government officials in the development of tax policy and determining the most effective measures to combat tax evasion.
References
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[19] Pereira, I. V., and Silva, C. A. T. (2020). The influence of internal and external rewards on people’s behavior regarding tax evasion practices in Brazil. Revista Contabilidade & Finanças, 31: 228-243. DOI:https://doi.org/10.1590/1808-057x201908290
[20] Pițu, I. C., Ciocanea, B. C., and Petrașcu, D. (2021). Tax evasion-corrosive factor for the national economy. European Journal of Interdisciplinary Studies, 13(1): 58-75. Available at: https://www.ejist.ro/files/pdf/468.pdf
[21] Rahayu, P. (2024). The impact of artificial intelligence on taxation aspect: A qualitative study. InFestasi 20(1): 38-53. DOI: https://doi.org/10.21107/infestasi.v20i1.25002
[22] Rahmayanti, N.P., and Prihatiningtias, Y.W. (2020). Effects of tax penalties, tax audit, and taxpayers awareness on corporate taxpayers’ compliance moderated by compliance intentions. International Journal of Research in Business and Social Science (2147-4478), 9(2): 118-124. DOI: https://doi.org/10.20525/ijrbs.v9i2.633
[23] Rieznik, O., et al. (2020). Financial security of the state. Journal of Security and Sustainability Issues, 3(10): 843-852. DOI: https://doi.org/10.9770/jssi.2020.9.3(10)
[24] Saptono, P. B., et al. (2023). Quality of e-tax system and tax compliance intention: The mediating role of user satisfaction. Informatics, 10(1): 22. DOI: https://doi.org/10.3390/informatics10010022
[25] Saragih, A. H., et al. (2023). The potential of an artificial intelligence (AI) application for the tax administration system’s modernization: The case of Indonesia. Artificial Intelligence and Law, 31(3): 491-514. DOI:https://doi.org/10.1007/s10506-022-09321-y
[26] Smiesova, V., Pylypenko, A., Ivanova, M., and Karpenko, R. (2019). Economic and institutional conditions for the implementation of economic interests in the countries of the world. Montenegrin Journal of Economics, 15(4): 75-86. DOI: https://doi.org/10.14254/1800-5845/2019.15-4.6
[27] Suriyadi, S., and Hani, S. (2024). The influence of tax knowledge and tax examination on taxpayer compliance with tax sanctions as a moderating variable AT KPP Pratama Binjai. International Journal of Economics and Management, 2(01): 84-92. DOI: https://doi.org/10.54209/iem.v2i01.31
[28] Tax Justice Network. 2021. The State of Tax Justice 2021. Tax Justice Network. https://taxjustice.net/wp-content/uploads/2021/11/State_of_Tax_Justice_Report_2021_ENGLISH.pdf
[29] Utama, M. Satria, So., and Fernandes, A. A. R. (2024). Constructing a broad view of tax compliance intentions based on big data. In: Machine Learning Approaches in Financial Analytics, pp. 279-305. Cham: Springer Nature Switzerland. DOI: https://doi.org/10.1007/978-3-031-61037-0_14
[30] van Brederode, R. 2020. Countermeasures to tax fraud, evasion and avoidance: A critical review. In: Ethics and Taxation, pp. 323-358. Cham: Springer. DOI: https://doi.org/10.1007/978-981-15-0089-3_13
[31] Widuri, R., et al. (2023). Preventing tax evasion: The moral strength of taxpayers and the power of tax authorities. Jurnal Akuntansi dan Keuangan, 25(2): 91-100. DOI: https://doi.org/10.9744/jak.25.2.91-100
[32] Xavier, O. C., et al. (2022). Tax evasion identification using open data and artificial intelligence. Revista de Administração Pública, 56: 426-440. DOI: https://doi.org/10.1590/0034-761220210256x
[33] Yamen, A., Coskun, A., and Mersni, Hounaida. (2023). Digitalization and tax evasion: the moderation effect of corruption. Economic research – Ekonomska istraživanja, 36(2): 2142634. DOI:https://doi.org/10.1080/1331677X.2022.2142634
[34] Yan, M & Wangdra, R. (2024). Exploring tax compliance dynamics: Unveiling the impact of penalties, tax authority services, and risk preferences. Jurnal Ilmiah Manajemen Universitas Putera Batam, 12(1): 515-526. DOI: https://doi.org/10.33884/jimupb.v12i1.8720
[35] Zamani, L., et al. (2024). Investigating the impact of electronic government services on tax evasion with the moderating role of information and communication technology. Tax research paper, 32(61): 177-225. DOI:https://10.61186/taxjournal.32.61.170
[2] Alm, J. (2021). Tax evasion, technology, and inequality. Economics of Governance, 22(4): 321-343. DOI:https://doi.org/10.1007/s10101-021-00247-w
[3] Apriwarto, M. H. (2024). Analysis of factors influencing taxpayer compliance in carrying out tax obligations (literature review). Economics and Business Journal (ECBIS), 2(5): 454-460. DOI:https://doi.org/10.47353/ecbis.v2i5.148
[4] Araújo M., J., Sousa, P., and Teixeira, G. (2020). Tax audits as a path to tax compliance in Portugal. European journal on criminal policy and research, 26. DOI: https://doi.org/10.1007/s10610-019-09417-3
[5] Atayah, O.F., and Alshater, M. M. (2021). Audit and tax in the context of emerging technologies: A retrospective analysis, current trends, and future opportunities. International Journal of Digital Accounting Research, 21: 95-128. DOI: https://doi.org/10.4192/1577-8517-v21_4
[6] Belahouaoui, R., and Attak, E-H. (2024). Digital taxation, artificial intelligence and Tax Administration 3.0: Improving tax compliance behaviour – A systematic literature review using textometry (2016–2023). Accounting Research Journal, 37(2): 172-191. DOI: https://doi.org/10.1108/ARJ-12-2023-0372
[7] Bolifaar, A. H., and Sinaga, H. D. P. (2020). Managing evidence of tax crime in Indonesia: An artificial intelligence approach in integrated criminal justice system. Ayer Journal, 27: 143-158. Available at: http://ayerjournal.com/index.php/ayer/article/view/128
[8] Do, Ha Thi Hao, et al. (2022). The impact of attitude towards an e-tax system on tax compliance of Vietnamese enterprises: Adoption of an e-tax system as a mediator. Journal of Entrepreneurship, Management and Innovation, 18(1): 35-64. DOI: https://doi.org/10.7341/20221812
[9] El-Manaseer, S. A., Al-Kayid, J.H., Al Khawatreh, A. M., and Shamim, M. (2023). The impact of digital transformation on combating tax evasion (electronic billing system as a model). In: Artificial Intelligence (AI) and Finance, pp. 679-690. Cham: Springer Nature Switzerland. DOI: https://doi.org/10.1007/978-3-031-39158-3_63
[10] Esmaeil Darjani, N., Assadzadeh, A., and Barghi Oskoei, M. M. (2023). Investigating behavioral economics in tax evasion decision making phenomenon: A tax crime scenario approach. Journal of decisions and operations research, 8(3): 654-670. DOI: https://doi.org/10.22105/dmor.2023.345401.1615
[11] Farrar, J., and King, T. (2023). To punish or not to punish? The impact of tax fraud punishment on observers’ tax compliance. Journal of Business Ethics, 183(1). DOI: https://doi.org/10.1007/s10551-022-05061-w
[12] Nguyen, Nui Dang, Mac, Yen Thi Hai, and Do, Ha Thi Hai. (2024). The impact of electronic tax system on tax compliance of Vietnamese small and medium enterprises. In: Knowledge Transformation and Innovation in Global Society: Perspective in a Changing Asia, pp. 179-198. Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-99-7301-9_9
[13] Nuryani, N., M., et al. (2024). Artificial intelligence model for detecting tax evasion involving complex network schemes. Aptisi Transactions on Technopreneurship (ATT), 6(3): 339-356. DOI:https://doi.org/10.34306/att.v6i3.436
[14] Oduro, R., Frimpong, J., and Mensah, E. E. (2024). Does tax audit enhance tax compliance? The role of tax education and fear-appealing messages. European Journal of Business and Management Research, 9(3): 14-23. DOI: https://doi.org/10.24018/ejbmr.2024.9.3.2276
[15] OECD iLibrary. (2023). Tax Administration 2023. OECD iLibrary. https://www.oecd-ilibrary.org/taxation/tax-administration-2023_900b6382-en
[16] Okeke, I. C. et al. (2024). A compliance and audit model for tackling tax evasion in Nigeria. International Journal of Frontier Research in Science, 2(2): 057-068. DOI: https://doi.org/10.56355/ijfrr.2024.2.2.0025
[17] Ozili, P. K. (2020). Tax evasion and financial instability. Journal of Financial Crime, 27(2): 531-539. DOI:https://doi.org/10.1108/JFC-04-2019-0051
[18] Paoki, A. G. et al. (2021). The effect of information technology and perceived risk in anticipating tax evasion. Doctoral diss., Petra Christian University. DOI: https://doi.org/10.22219/jrak.v11i2.14871
[19] Pereira, I. V., and Silva, C. A. T. (2020). The influence of internal and external rewards on people’s behavior regarding tax evasion practices in Brazil. Revista Contabilidade & Finanças, 31: 228-243. DOI:https://doi.org/10.1590/1808-057x201908290
[20] Pițu, I. C., Ciocanea, B. C., and Petrașcu, D. (2021). Tax evasion-corrosive factor for the national economy. European Journal of Interdisciplinary Studies, 13(1): 58-75. Available at: https://www.ejist.ro/files/pdf/468.pdf
[21] Rahayu, P. (2024). The impact of artificial intelligence on taxation aspect: A qualitative study. InFestasi 20(1): 38-53. DOI: https://doi.org/10.21107/infestasi.v20i1.25002
[22] Rahmayanti, N.P., and Prihatiningtias, Y.W. (2020). Effects of tax penalties, tax audit, and taxpayers awareness on corporate taxpayers’ compliance moderated by compliance intentions. International Journal of Research in Business and Social Science (2147-4478), 9(2): 118-124. DOI: https://doi.org/10.20525/ijrbs.v9i2.633
[23] Rieznik, O., et al. (2020). Financial security of the state. Journal of Security and Sustainability Issues, 3(10): 843-852. DOI: https://doi.org/10.9770/jssi.2020.9.3(10)
[24] Saptono, P. B., et al. (2023). Quality of e-tax system and tax compliance intention: The mediating role of user satisfaction. Informatics, 10(1): 22. DOI: https://doi.org/10.3390/informatics10010022
[25] Saragih, A. H., et al. (2023). The potential of an artificial intelligence (AI) application for the tax administration system’s modernization: The case of Indonesia. Artificial Intelligence and Law, 31(3): 491-514. DOI:https://doi.org/10.1007/s10506-022-09321-y
[26] Smiesova, V., Pylypenko, A., Ivanova, M., and Karpenko, R. (2019). Economic and institutional conditions for the implementation of economic interests in the countries of the world. Montenegrin Journal of Economics, 15(4): 75-86. DOI: https://doi.org/10.14254/1800-5845/2019.15-4.6
[27] Suriyadi, S., and Hani, S. (2024). The influence of tax knowledge and tax examination on taxpayer compliance with tax sanctions as a moderating variable AT KPP Pratama Binjai. International Journal of Economics and Management, 2(01): 84-92. DOI: https://doi.org/10.54209/iem.v2i01.31
[28] Tax Justice Network. 2021. The State of Tax Justice 2021. Tax Justice Network. https://taxjustice.net/wp-content/uploads/2021/11/State_of_Tax_Justice_Report_2021_ENGLISH.pdf
[29] Utama, M. Satria, So., and Fernandes, A. A. R. (2024). Constructing a broad view of tax compliance intentions based on big data. In: Machine Learning Approaches in Financial Analytics, pp. 279-305. Cham: Springer Nature Switzerland. DOI: https://doi.org/10.1007/978-3-031-61037-0_14
[30] van Brederode, R. 2020. Countermeasures to tax fraud, evasion and avoidance: A critical review. In: Ethics and Taxation, pp. 323-358. Cham: Springer. DOI: https://doi.org/10.1007/978-981-15-0089-3_13
[31] Widuri, R., et al. (2023). Preventing tax evasion: The moral strength of taxpayers and the power of tax authorities. Jurnal Akuntansi dan Keuangan, 25(2): 91-100. DOI: https://doi.org/10.9744/jak.25.2.91-100
[32] Xavier, O. C., et al. (2022). Tax evasion identification using open data and artificial intelligence. Revista de Administração Pública, 56: 426-440. DOI: https://doi.org/10.1590/0034-761220210256x
[33] Yamen, A., Coskun, A., and Mersni, Hounaida. (2023). Digitalization and tax evasion: the moderation effect of corruption. Economic research – Ekonomska istraživanja, 36(2): 2142634. DOI:https://doi.org/10.1080/1331677X.2022.2142634
[34] Yan, M & Wangdra, R. (2024). Exploring tax compliance dynamics: Unveiling the impact of penalties, tax authority services, and risk preferences. Jurnal Ilmiah Manajemen Universitas Putera Batam, 12(1): 515-526. DOI: https://doi.org/10.33884/jimupb.v12i1.8720
[35] Zamani, L., et al. (2024). Investigating the impact of electronic government services on tax evasion with the moderating role of information and communication technology. Tax research paper, 32(61): 177-225. DOI:https://10.61186/taxjournal.32.61.170
Published
2025-03-31
How to Cite
TOPCHII, Vasyl et al.
Prevention of Tax Criminal Offences as a Factor in the Financial Stability of the State.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 16, n. 1, p. 170 - 181, mar. 2025.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8786>. Date accessed: 11 apr. 2025.
doi: https://doi.org/10.14505/tpref.v16.1(33).14.
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