Challenges of digital platforms implementation for cooperation of business and tax authorities

Abstract

Digitalization and transformation to innovative solutions are essential trends in the development of taxation and other areas. In general, the continuous evolution of IT technologies is a crucial factor in digitizing most processes in the modern world. The Main effects and consequences of digitalization are the collection of large amounts of information (big data), which is analyzed by AI and used to make decisions in various areas of economic and social, government, and legislative activities. Today, humanity accumulates as much data as the human brain cannot comprehend and process in a lifetime. The taxation sphere is not an exception, with more and more tools for taxpayers and regulatory authorities now available in digital form. The newest cooperation services between the taxpayer and the government are designed to improve the work of tax authorities and, most importantly, simplify the process of paying taxes, submitting tax returns, and receiving consultations. All of these services have been operating successfully for some time but still need to be improved and expanded. The digital economy is pushing tax authorities to replace traditional models of tax administration with new models that analyze and use big data and electronic tools online to promote effective cooperation between tax authorities worldwide. However, in line with the development of the Ukrainian tax system and the transformation of the taxpayer-state relationship, implementing electronic data transfer components is not always phased, which creates additional risks for businesses. UDC: 336.22:004.8(477). JEL: H29. DOI: https://doi.org/10.53486/escst2023.15