INSURANCE INSTRUMENTS IN THE SYSTEM OF TAX RISK MANAGEMENT OF DOMESTIC BUSINESS ENTITIES

Abstract

The article examines scientific approaches to defining the essence of the concept of “tax risks”, considers subjective and objective manifestations of tax risks, summarizes the national experience of tax risk management and identifies its current trends in the context of an unstable economic environment. The objectivity and subjectivity of tax risks determine the extent of consequences in case of realization of the relevant risks. The consequences of realization of tax risks may be manifested not only in direct financial losses, non-receipt of tax payments to the budget or reduction of profit or income of an enterprise, but also in indirect losses, such as, for example, complexity of implementation of tax reform, growth of social tension, deterioration of the investment climate for business, and as a result, tax evasion, etc. The author analyzes the control activities of the State Tax Service of Ukraine under martial law. It is determined that the selection of taxpayers for documentary audits of their compliance with tax legislation is carried out based on the existing tax risks of underpayment of taxes and fees, which are determined by the risk-based selection system. The article investigates the essence and role of insurance as a tool for minimizing tax risks. It is determined that insurance products covering tax risks allow the insured taxpayer to minimize financial losses associated with additional tax liabilities, including additional taxes and fees, fines, penalties, if any, due to errors or inaccuracies in tax returns and tax audits or court decisions. The author suggests the following areas for intensification of insurance companies' activities in dealing with tax risks, which will allow attracting a wide range of insurers and effectively promoting tax risk insurance products in the domestic insurance market.