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Legislative Regulation and International Cooperation in Counteracting Corporate Tax Abuse
Orlov I. V., Zakharov D. M.

Orlov, Igor V., and Zakharov, Dmytro M. (2024) “Legislative Regulation and International Cooperation in Counteracting Corporate Tax Abuse.” Business Inform 7:413–420.
https://doi.org/10.32983/2222-4459-2024-7-413-420

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
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UDC 657.347.7

Abstract:
The aim of the article is to analyze the mechanisms and consequences of corporate tax abuse and the use of offshore companies for the global and national economy. The results of the study provide insights and recommendations for improving tax compliance, ensuring fair taxation and mitigating the negative im-pact of corporate tax abuse on economic and social development. The article discusses one of the most important problems of the modern global economy – the abuse of corporate taxes. This issue is becoming increasingly relevant due to factors such as globalization, the development of the digital economy, and the growing importance of intangible assets. Abuse of corporate taxes leads to significant losses in government revenues, which reduces the ability of governments to finance key social services and infra-structure projects. This, in turn, exacerbates economic inequality and undermines social welfare. In the face of increased international competition for tax revenue, multinationals use sophisticated aggressive tax planning schemes, including offshore zones and tax havens, to minimize their tax liability. This practice requires effective regulation and coordination at the international level. The article analyzes modern legislative initiatives and measures aimed at counteracting tax abuse, such as the General Anti-Avoidance Rules (GAAR) and the Special Anti-Avoidance Rules (SAAR). Particular attention is paid to the role of international cooperation, including projects of the Organization for Economic Co-operation and Development (OECD) and the European Union (EU), in increasing tax transparency and preventing the movement of profits. The relevance of the study is emphasized by the need for continuous improvement of tax legislation and the introduction of the latest technologies to detect and prevent tax evasion.

Keywords: BEPS, transfer pricing, taxation, two-tier solution, OECD.

Fig.: 2. Bibl.: 17.

Orlov Igor V. – Doctor of Sciences (Economics), Professor, Professor, Department of Accounting and Auditing, Ferenc Rakoczi II Transcarpathian Hungarian Institute (6 Koshuta Square, Beregovo, Zakarpatska oblast, 90202, Ukraine)
Email: [email protected]
Zakharov Dmytro M. – PhD, Associate Professor, Department of Information Systems in Management and Accounting, Zhytomyr Polytechnic State University (103 Chudnivska Str., Zhytomyr, 10005, Ukraine)
Email: [email protected]

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