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{"id":20304,"date":"2025-06-01T11:17:00","date_gmt":"2025-06-01T08:17:00","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=20304"},"modified":"2025-06-01T11:17:00","modified_gmt":"2025-06-01T08:17:00","slug":"the-role-of-tax-regulation","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/the-role-of-tax-regulation\/","title":{"rendered":"Poltorak A., Nesterchuk T., Pastushenko V. The Role of Tax Regulation in Ensuring Ukraine’s Financial and Economic Security Amid the Growth of the Shadow Economy"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> H26, H30, E27, O17.<\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V50(2025)-19<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Poltorak Anastasia,<\/strong> Doctor of Economics, Professor, Head of the Department of Management and Marketing, Mykolayiv National Agrarian University, Mykolaiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 000-0002-9752-9431<\/span><\/a>
\ne-mail: <\/strong>poltorak@mnau.edu.ua<\/span><\/a><\/p>\n

Nesterchuk Tetyana,<\/strong> Applicant of Higher Education, Accounting and Finance Faculty, Mykolayiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0009-0001-6140-774\u0425<\/span><\/a>
\ne-mail: <\/strong>tanjanesterthuk@gmail.com<\/span><\/a><\/p>\n

Pastushenko Vitaliy,<\/strong> Applicant of Higher Education, Accounting and Finance Faculty, Mykolayiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0009-0002-8711-0060<\/span><\/a>
\ne-mail: <\/strong>pastusenkovitali102@gmail.com<\/span><\/a><\/p>\n

 <\/p>\n

The Role of Tax Regulation in Ensuring Ukraine’s Financial and Economic Security Amid the Growth of the Shadow Economy<\/h2>\n

Abstract. Introduction<\/i><\/b>. The shadow economy is a long-standing phenomenon that affects countries worldwide, including Ukraine. A significant portion of Ukraine\u2019s GDP remains in the shadows, posing serious challenges to financial stability, state governance, and economic growth. The persistence of informal economic activities undermines tax collection, weakens the institutional capacity of the state, and distorts market competition. The article focuses on analyzing current indicators of the shadow economy in Ukraine, its root causes, and modern trends, while also proposing state-level strategies for its mitigation. Given the increasing importance of economic transparency in the context of European integration and global economic shifts, addressing this issue is crucial for Ukraine\u2019s sustainable development.
\n<\/span><\/i><\/p>\n

Purpose<\/i><\/b>. The purpose of the article is to identify the main causes of the shadow economy in Ukraine, determine its scale and implications for economic development, and outline effective mechanisms for its reduction through state tax policy and institutional reforms.
\n<\/span><\/i><\/p>\n

Results<\/i><\/b>. The study determined that the shadow economy in Ukraine amounts to approximately 30\u201350% of GDP, with key causes being excessive tax pressure, regulatory complexity, corruption, and geopolitical factors. The most widespread tax evasion schemes are “envelope wages” and gray imports. The authors propose a set of state tax policy strategies, including simplifying the tax system, reducing the tax burden on small and medium-sized businesses, enhancing transparency, digitalization of tax administration, and strengthening penalties for violations.
\n<\/span><\/i><\/p>\n

Conclusions<\/i><\/b>. Reducing the shadow economy is critical for Ukraine\u2019s fiscal sustainability and long-term development. A comprehensive approach involving tax reforms, institutional strengthening, technological solutions, and incentivizing official economic activity can significantly reduce informal practices. Implementation of the proposed measures will increase tax revenues, improve financial discipline, and contribute to Ukraine\u2019s overall economic stability.
\n<\/span><\/i><\/p>\n

Keywords<\/b>: shadow economy, tax evasion, tax policy, tax management, financial stability, financial and economic security.<\/span><\/i><\/p>\n

References<\/b>:<\/strong><\/p>\n

    \n
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  2. Stigler,\u00a0G.\u00a0J. (1971). The Theory of Economic Regulation.\u00a0<\/span>The Bell Journal of Economics and Management Science<\/span><\/i>,\u00a0<\/span>2<\/span><\/i>(1), 3\u201321.\u00a0https:\/\/doi.org\/10.2307\/3003160.<\/span><\/li>\n
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  22. Economics Expert Platform.<\/span> (2024). Assessment of the shadow economy by industries. https:\/\/economics.org.ua\/index.php\/nasha-robota\/dashbord<\/span><\/i>.<\/span><\/li>\n<\/ol>\n

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    Poltorak A., Nesterchuk T., Pastushenko V. (2025). The Role of Tax Regulation in Ensuring Ukraine’s Financial and Economic Security Amid the Growth of the Shadow Economy. Modern Economics, 50(2025), 144-151. DOI: https:\/\/doi.org\/10.31521\/modecon.V50(2025)-19.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: H26, H30, E27, O17. DOI: https:\/\/doi.org\/10.31521\/modecon.V50(2025)-19 [\/vc_column_text][vc_column_text]Poltorak Anastasia, Doctor of Economics, Professor, Head of the Department of Management and Marketing, Mykolayiv National Agrarian University, Mykolaiv, Ukraine ORCID ID: 000-0002-9752-9431 e-mail: poltorak@mnau.edu.ua Nesterchuk Tetyana, Applicant of Higher Education, Accounting and Finance Faculty, Mykolayiv National Agrarian University, Ukraine ORCID ID: 0009-0001-6140-774\u0425 e-mail: tanjanesterthuk@gmail.com Pastushenko
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