TAX INSTRUMENTS TO COUNTERACT THE ECONOMIC ACTIVITY IN THE SHADOW ECONOMY

Abstract

The main reasons for tax avoidance are objective and due to gaps in the existing regulatory framework, controversial government policy, market imbalances, ineffective functioning of the tax administration system and supervisory agencies. In this connection, institutional forms of counteracting the economic activity in the shadow economy, which manifests itself as violations of the tax and criminal laws, should be created at all hierarchical levels of the economic system. The conducted analysis of qualitative characteristics of taxpayers' behavior at the meso-level systems showed the presence of a self-organizing mechanism for the shadow economy's expansion, which key parameter is tax avoidance. The existing polyvariation of forms and methods of the deviant taxpayers' behavior complicates diagnostics, detection, criminal prosecution or imposition of administrative sanctions for the tax violations. In this connection, an economico-mathematical model has been developed to estimate the level of tax discipline across industries, it allows carrying out the analytical optimization of tax control procedures and increasing transaction costs of dishonest taxpayers