INSTITUTIONAL CONSTRAINTS AND OPPORTUNITIES OF THE TAX SYSTEM IN THE PROCESSES OF STRUCTURAL TRANSFORMATION OF THE ECONOMY

Abstract

The institutional constraints and opportunities of the tax system in the context of structural changes in the national economy of Ukraine, caused by globalisation processes, digital transformation, military challenges and post-war recovery tasks, are revealed. The purpose of the article is to identify institutional constraints and opportunities of the tax system in the processes of structural transformation of the national economy. The tax system is considered as a complex institutional entity that combines formal taxation rules and informal institutions of tax behavior and trust, and directly influences the investment and innovation activity of economic entities and the direction of economic development. Key institutional factors that reduce the effectiveness of tax regulation as an instrument of structural change have been identified, in particular the instability of tax legislation, the fragmentation and weak strategic coordination of tax incentives, the insufficient integration of tax policy with accounting and analytical support, fiscal orientation of tax control, and a low level of trust between the state and taxpayers. It has been determined that under such conditions, tax instruments are mainly focused on short-term budget revenue generation and do not create stable conditions for investment in priority sectors of the economy. The directions of institutional renewal of the tax system are outlined, the implementation of which strengthens its capacity to influence economic processes in the long term. Particular attention is paid to the institutional alignment of tax policy with strategic economic development goals. Opportunities for strengthening the role of the tax system through the targeted use of tax incentives, harmonization of tax and accounting approaches, introduction of risk-oriented tax control models, development of analytical assessment tools, and digitalization of tax administration are outlined. The implementation of these measures is seen as a prerequisite for reducing transaction costs, increasing the transparency of economic processes, and creating an institutional environment capable of supporting long-term economic development.