Modeling the efficiency of the financial system in the context of digitalization of tax policy

Abstract

The study examines the impact of tax policy digitalization on the efficiency of the financial system and proposes a conceptual model for assessing the effectiveness of tax administration using modern digital technologies and big data processing methods. The relevance of the research is driven by the need to enhance financial transparency, optimize reporting processes, and improve the quality of tax control amidst economic challenges and wartime threats. It has been established that the implementation of digital tools helps reduce the time required for report processing and minimizes the risks associated with human error; however, it also introduces risks related to technical failures, cyberattacks, and insufficient data protection. 

The purpose of the article is to develop methodological approaches to modeling the efficiency of the financial system in the context of digitalization of tax policy. The study employs a systematic approach to evaluate the complexity of digital processes, analytical methods to identify the main issues in digitalization, and modeling methods to design a conceptual framework for the interaction of digital tools within tax administration. 

The proposed model includes automated data collection and processing, real-time transaction monitoring, and the use of analytical dashboards to assess administrative efficiency. It has been demonstrated that the use of such solutions increases the speed of tax operation control, enables timely detection of anomalies, and simplifies interactions between taxpayers and government authorities. The findings show that implementing an integrated platform enhances coordination among governing bodies and increases the transparency of tax procedures. 

The study offers practical recommendations for creating secure information systems, conducting training programs to improve staff qualifications, and ensuring the resilience of digital infrastructure in crisis situations. It has been concluded that a systematic approach to tax administration digitalization can enhance control efficiency and increase budget revenues. Further research prospects include refining risk assessment models and integrating artificial intelligence to automate tax process analysis and financial flow forecasting.