INTERNATIONAL AND NATIONAL ECONOMIC AND LEGAL ASPECTS OF INSTITUTIONAL DISCIPLINE OF LAW ENFORCEMENT AND REGULATORY AUTHORITIES IN THE FIELD OF TAX SECURITY

Abstract

This article examines the international and national economic and legal aspects of institutional discipline within law enforcement agencies in relation to tax security. It substantiates the importance of tax security as a component of a state's economic security, as it directly affects budget revenue stability, business activity transparency, business confidence in state institutions, and a country's investment attractiveness. It has been established that the institutional discipline of law enforcement authorities encompasses not only compliance with service discipline by individual employees, but also legality, integrity, professionalism, responsibility, proper interagency co-operation and the prevention of corruption. At the national level, it has been determined that proper institutional discipline contributes to the effective counteraction of tax evasion, unlawful tax refunds, fictitious entrepreneurship and other tax offences. Its significance at the international level is manifested in its ability to counter transnational tax risks, illegal capital outflows, manipulation of foreign economic activity and investment abuses. Research methods. The study's methodological basis consists of formal legal, comparative legal, systemic, functional and economic-legal methods. The formal legal method was employed to clarify the content of legal norms that regulate the activities of law enforcement authorities in ensuring tax security. The comparative legal method enabled an examination of international and national approaches to countering tax offences and evasion, and ensuring an appropriate level of institutional discipline. The systemic method was applied to consider tax security as part of the state's economic security and to determine the role of law enforcement authorities in ensuring it. The functional method enabled the analysis of the role of the institutional discipline of law enforcement authorities in preventing tax risks, manifestations of corruption, and abuses in the field of taxation. The economic-legal method was employed to determine the correlation between the effectiveness of law enforcement activities, budget revenue stability, investment attractiveness and the level of tax security. The method of analysing scientific sources and international studies was also employed. The purpose of this article is to identify the international and national economic and legal aspects of the institutional discipline of law enforcement authorities in relation to tax security. Conclusions. This study summarises the international and national economic and legal aspects of the institutional discipline of law enforcement and regulatory authorities in relation to tax security. It establishes that tax security is a vital part of a state's economic security, as it directly impacts budget revenue stability, the effective operation of the tax system, business confidence in state institutions, investment appeal, and the state's capacity to counter economic and financial threats. It has been proven that the institutional discipline of law enforcement and regulatory authorities cannot be reduced to individual officials' compliance with service regulations alone. The concept encompasses legality, integrity, professionalism, responsibility, impartiality, transparent procedures, anti-corruption resilience, effective interagency co-operation and the capacity of state bodies to respond promptly to tax risks. Therefore, institutional discipline has significant internal organisational, economic, and legal implications. The article substantiates that the effectiveness of ensuring tax security is contingent on the coordinated activity of law enforcement and regulatory authorities, including the Bureau of Economic Security of Ukraine, the State Tax Service of Ukraine, the State Customs Service of Ukraine, the National Anti-Corruption Bureau of Ukraine, the State Bureau of Investigation, the Security Service of Ukraine, the National Police of Ukraine, and the prosecutor's offices. Each of these bodies performs its own function in the system of countering tax offences; however, the effectiveness of their activity is possible only under conditions of clear delimitation of powers, proper coordination, and personal responsibility of officials. A review of the literature on the subject reveals that, at the national level, the main problems of institutional discipline in the field of tax security include duplication of powers, insufficient coordination between bodies, corruption risks, selectivity of law enforcement, excessive pressure on business, lack of transparency of certain procedures, weak information and analytical capacity, and a formal approach to evaluating performance results. Such problems have a detrimental effect on the state of tax security, as they contribute to budget deficits, reduced trust in the state, distortion of the competitive environment, and weakening of economic stability. It has been established that international threats to tax security manifest themselves through a number of means, including tax evasion in foreign economic activity, illegal capital outflows, the use of offshore jurisdictions, understatement of the customs value of goods, transfer pricing, fictitious import or export, VAT fraud, money laundering, and concealment of beneficial owners. In order to counter such threats, effective national control is required, as well as continuous international information exchange and co-operation with Europol, Eurojust, the EPPO and OLAF. It is also necessary to use European standards when investigating economic offences. Of particular importance is the shift from formally assessing the activities of law enforcement and regulatory authorities to assessing their genuine economic outcomes. This encompasses not only the number of criminal proceedings initiated or inspections conducted, but also the actual compensation for damages obtained, the prevention of budget losses, the identification of systemic tax risks, the termination of tax evasion schemes, the reduction of the shadow economy, and the creation of equal conditions for bona fide taxpayers. It has been determined that the institutional discipline of law enforcement authorities in the field of tax security has a complex economic and legal nature. This is because it affects the effectiveness with which tax offences are detected and terminated, as well as budget revenue stability, business confidence in the state, international investment attractiveness and the state’s ability to counter transnational tax risks.