The role of digital technologies in the organization of control over tax liability settlements of budgetary institutions

Abstract

It is impossible to imagine the functioning and development of the state and society without the use of digital technologies. This research is topical because of the need to solve the problem of modernizing the tax control system through the introduction of modern digital product. The aim of the study was to assess the impact of digital technologies on the organization of control over tax liability settlements of state-financed institutions in the general fiscal discipline system. Budgetary institutions of the EU-27 were selected as the object of research. General research methods and specific methods of accounting and control of tax liabilities in budgetary institutions were used: Pareto analysis; cluster analysis of EU countries by fiscal discipline level. The study grouped European experience with the use of national digital tax control systems in the EU-27. As a result, five levels of digital tools in fiscal control were identified – from the simplest “E-file” to a fully automated control system “E-access”. The study proved a direct relationship between the extent at which digital technologies are applied in the control of tax liabilities and the level of fiscal discipline in the country (r = 0.828710). The clustering of the EU-27 countries by the method of average group value for compliance with the fiscal discipline confirmed the cophenetic correlation between the fiscal discipline violation rate and the total averaged amount of taxes paid by budgetary institutions for 2019–2021 (r = 0.867331). The study is analytical and managerial in nature, its results assess the contribution of the digital component in the overall decision-making system. The study is particularly useful for analysing the achievements, challenges and opportunities for digital transformation of the tax control system of the EU-27 in the field of control over public finance management.

Keywords

• budgetary institutions
• digital technologies
• digitalization
• tax control
• tax culture
• tax liabilities