Digitalization of Tax Administration: Modern Model and Development Prospects

Abstract

The dominant technological trend of the 21st century is the Fourth Industrial Revolution (Industry 4.0). Based on robotization (automation) and digitalization of processes, it has embraced the entire advanced world community. Modern humanity has adapted to a technologically innovative way of life and actively uses social networks, messengers, distance learning formats, GPS navigation, online commerce, online government services, Internet banking, etc. Economic relations are no exception. Digital transformation has affected the financial system, on the one hand, by modifying concepts, models, methods, mechanisms, tools, and providing convenience, saving time, and security on the other. Contactless interaction becomes the basis of tax relations. The tax administration system, based on strict norms of the law, operates in a digital environment, which simplifies the procedures of interaction with taxpayers. The purpose of the work is to consider the processes of digitalization of tax administration, which will allow us to form a model and principles of the current tax administration system. For this purpose, the article examines the existing electronic services and tax administration programs, presents their classification, and identifies development prospects. The modern model of the tax administration system based on the principles of transparency of the interaction of subjects of tax relations, the functional conjuncture of the fulfillment of tax obligations, the condition and quality of services provided in a digital environment contributes to the achievement of the targets of the budget system, as well as national goals and priorities of the development of the state.