Digital Transformation of Tax Relationships as the Basic Infrastructure for Business Security
Year: 2025
Type: article
Abstract: The article investigates how digital transformation of business processes and tax relations strengthens firm resilience and economic security under crisis conditions, including war risk and institutional immaturity. Building on the literature on innovation capability and organizational adaptation, we articulate the mechanisms through which digitalization reshapes accounting, taxation, reporting, and workforce organization, replacing paper‑based, presence‑dependent routines with cloud services, e‑reporting, and remote collaboration. We argue that tax interaction is a pivotal channel linking state fiscal objectives with firms’ incentives to remain compliant when uncertainty is high. Empirically, we reflect recent survey evidence on remote work diffusion and World Bank findings on compliance activities, showing a persistent shift toward electronic submission and minimal physical contact. We show that managerial decision‑making is complicated by bureaucratic frictions and ambiguous guidance, sustaining tax uncertainty despite expanded e‑services. The study sets a research aim to justify the role of digital tools, e‑audit readiness, and data‑centric risk management in mitigating tax risks. Practical implications emphasize competency development in tax risk management, big data analytics, and handling extraterritorial information flows produced by distributed teams. Policy implications include improving consultative quality, clarifying requirements, and aligning trust services with business needs. Overall, we conclude that resilience emerges from a triad: technological integration, professional capacity, and transparent regulation. Their joint deployment reduces transaction costs, enhances compliance, and enables faster recovery while safeguarding competitive advantage in volatile environments. Methodologically, the paper synthesizes recent empirical patterns of remote work diffusion, platform‑mediated gig activity, and administrative digitalization to frame testable propositions about tax risk identification. The contribution lies in specifying capabilities
Source: Economies Horizons
Author: Illia Puholovko
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7129017302