THE INFLUENCE OF THE SHADOW ECONOMY ON THE COUNTRY'S TAX SYSTEM

Abstract

The problem of the shadow economy is global for the whole world, but among European countries Ukraine is among the leaders, so the de-shadowing of the country's economy should become a top priority of public policy. The factors influencing the shadowing of the economy are identified. It is established that the shadow economy of the country is closely related to the level of development of its tax system, opportunities to avoid taxation, and as a consequence, the lack of financial resources to the state budget. The purpose of the article is to assess the level of tax losses of the state due to the shadowing of the country's economy and possible options for reducing the shadow sector. The methodological basis of this article is a systematic approach and a set of general and special research methods, known as: the method of classification and systematization is used to analyze modern research in the field of economy shadowing; comparative analysis – to determine the structure, causes and consequences of the shadow economy; historical – in order to study global trends and national characteristics of the shadow economy in the context of globalization; generalization – in the process of preparing conclusions. It is established that in Ukraine, in conditions of high tax burden, the positive effect of paying taxes is very significant. The presence of a high level of corruption makes it possible to significantly reduce the likelihood of timely detection of tax evasion, and imperfect legislation makes it possible to reduce tax payments to a minimum. It is proved that the high level of the shadow economy in Ukraine has many negative consequences, in particular: loss of tax revenues, as a result – complicating the state's fulfillment of its financial obligations to society and increasing the uneven tax pressure; reduction of investment resources; spreading distrust of the government; increase in the number of economic crimes due to the impossibility of resolving labor disputes in court or in the commission for resolving labor disputes due to lack of legal basis for resolving labor conflicts between agents employed in the shadow sector, large-scale development of organized crime, leading to loss of state regulation , control and perform other socially important functions. The complexity of the shadow economy problems provides, to some extent, an opportunity to stimulate solutions to one problem. Thus, in solving legal problems, social and economic problems are solved and improved conditions for business by optimizing the actions of business lead to an increase in the business climate and investment attractiveness, which in turn ensures the financial sustainability of enterprises, and by providing reliable social security for employees comparing the benefits of being in the shadows becomes illogical.