FISCAL DEVIATION IN UKRAINE: THE INTERRELATIONSHIP OF CORRUPTION, TAX EVASION, AND TAX CONTROL

Abstract

The problem of fiscal deviation becomes particularly acute in the context of martial law, when the coun- try urgently needs to mobilize all available resources to ensure defense capability and maintain socio-economic stabil- ity. This article is dedicated to a comprehensive study of fiscal deviation in Ukraine, examining it as a systemic problem encompassing corruption, tax evasion, and closely linked to the effectiveness of tax control. The aim of the research is to identify and analyze the interrelationships between these key elements, their impact on the economic stability of the state, and to develop proposals for improving mechanisms to counteract fiscal deviation. The article considers fiscal deviation as a broader concept than just tax evasion, including also corruption and their impact on reducing budget revenues. Particular attention is paid to the shadow economy as an environment conducive to the development of fiscal deviation, and its relationship with corruption and tax evasion. An analysis of the causes of the spread of fiscal devia- tion in Ukraine is conducted, which, according to the authors, are: systemic corruption, weak institutions, the shadow economy, legislative instability, a low level of tax culture, and martial law. The paper analyzes in detail the role of tax control in the system of countering fiscal deviation. Various approaches to organizing tax control, as well as factors influencing its effectiveness, are examined. It is revealed that corruption is one of the main obstacles to effective tax control, as it creates favorable conditions for tax evasion and other forms of fiscal deviation. A set of measures aimed at strengthening tax control, reducing corruption in tax authorities, de-shadowing the economy, and raising the level of tax culture is proposed. The research is based on the analysis of scientific works, statistical data, legislative acts, and other relevant materials. It was concluded that fiscal deviation is not an isolated phenomenon but is closely linked to corruption, the shadow economy, and ineffective tax control.