COMBATING TAX EVASION: THE ROLE OF AUDITING, CONTROL AND MONITORING

Abstract

The purpose of the article is to determine the role of audit, tax control, and monitoring in the system of combating tax evasion, as well as to substantiate the directions for improving their effectiveness in the context of the digital transformation of public administration and the increasing complexity of financial transactions. Tax evasion remains one of the most significant threats to the financial security of the state, as it reduces budget revenues, distorts fair competition, weakens public trust in tax institutions, and limits the government's capacity to finance social and economic development. Therefore, strengthening the mechanisms of tax compliance and improving the effectiveness of control instruments are essential priorities for modern tax administration. Methodology. The research is based on a combination of general scientific and special research methods. The methods of analysis and synthesis were used to examine the theoretical foundations of tax evasion and identify its main causes and consequences. Comparative analysis enabled the assessment of domestic and international approaches to tax control and audit. The methods of generalization, systematization, and logical reasoning were applied to determine the interaction between audit, tax control, and monitoring within an integrated framework for combating tax offenses. The study also considers current trends in digitalization, risk-oriented approaches, and the application of information technologies in tax administration. Results. The article investigates tax evasion as a complex socio-economic phenomenon that negatively affects fiscal sustainability and economic development. Particular attention is paid to the functions of audit, tax control, and monitoring as complementary instruments for detecting, preventing, and minimizing tax violations. The study identifies the most effective mechanisms for enhancing tax compliance, including risk-based audit selection, automated monitoring systems, digital reporting, data analytics, artificial intelligence, and interagency information exchange. Practical implications. The findings of the research may be applied by public authorities to improve tax policy, modernize tax administration, strengthen audit procedures, and implement advanced monitoring technologies. The proposed recommendations may also be useful for business entities seeking to improve financial discipline, internal control systems, risk management, and tax transparency. Value/originality. The originality of the study lies in providing a comprehensive and integrated approach to understanding the interaction between audit, tax control, and monitoring in combating tax evasion under contemporary economic conditions. The research highlights the growing importance of digital technologies and risk-oriented management in improving the effectiveness of tax control and ensuring sustainable public finance.