The Role of Tax Control in the System of Public Governance. Analysis of Fiscal, Economic, and Social Mechanisms

Abstract

The paper presents an analytical overview of the multifunctional role of tax control within the modern state governance system. It describes how tax control not only performs a fiscal function in ensuring budget revenues but also influences economic processes, supports the formation of a competitive environment, and promotes social fairness.

The study examnes three main dimensions of tax control. The fiscal aspect includes ensuring budget revenue stability, reducing tax gaps, and strengthening the state’s financial capacity. The economic dimension involves influencing the behavior of economic actors, shaping a competitive environment, and promoting the efficient allocation of resources. The social dimension relates to the equitable distribution of tax burdens, strengthening public trust, and building social capital.

Particular attention is paid to the institution’s impact on public trust and its role in the fair allocation of tax burdens. The paper discusses contemporary challenges related to the effectiveness of tax control, including issues of administrative burden, transparency, and proportionality.

Recommendations are provided to improve the tax control system, based on risk-oriented monitoring, digital technologies, and trust-based approaches. The importance of digital transformation for enhancing the efficiency of tax administration and the significance of trust-based relationships with taxpayers are particularly emphasized.

The paper is grounded in an analysis of international experience and includes practical recommendations for optimizing the tax control system. A comparative analysis of tax systems in different countries is presented, enabling the identification of best practices and their potential adaptation to local conditions.