TAX CULTURE AND ITS IMPACT ON INCREASING TAX REVENUES

In this article, the author examines the problems associated with the low level of tax culture and tax discipline in Ukraine. The author identifies the dependence of the tax culture on a number of factors: ethno-national peculiarities of perception of universal human values; historically determined national traditions of tax payment and tax system structure; conditions of social and intellectual development of citizens; and the nature of interaction between taxpayers and tax authorities. The author determines that the level of tax culture is an important factor in the functioning of the tax system of any State. It is noted that the most significant factors of the low level of tax culture in Ukraine include: constant changes and tax legislation which is difficult for taxpayers to understand; low level of taxpayers' trust in the tax service and executive authorities, the existence of the shadow sector of the State's economy, etc. The author analyzes the amendments and additions to the Tax Code of Ukraine in 2011–2023. It is established that due to the constant changes in tax legislation and the reform of the taxation system, there is a need to clarify complex issues for taxpayers to fulfill their tax obligations and improve tax literacy. The author analyzes the experience of European countries in enhancing the level of mutually beneficial relations between taxpayers and tax authorities and establishes that the process of formation of tax culture at all stages of development and functioning of the State and society is based on constant maintenance of the balance of interests of the State and taxpayers. It is found that in most European countries, considerable attention is paid to information and advisory work with taxpayers both by public authorities and independent professionals — tax consultants. The author emphasizes the need to develop the institute of tax consulting in Ukraine in order to increase the level of tax discipline and proper fulfillment of taxpayers' tax obligations. The correlation between the level of development of taxpayers' tax culture and the scale of the shadow economy is revealed. It is established that a high level of tax discipline and tax payment culture leads to a decrease in the level of the shadow economy. Further directions for improving the level of tax culture in Ukraine and improving relations with tax authorities are identified, which will contribute to the development of the Ukrainian economy as a whole.