Economic and legal means of economy detinization and state control over financial transactions as a mechanism for combating the shadow sector

Abstract

The current conditions for economic development are directly related to the issues of de-shadowing economic activity, ensuring the transparency of financial flows, strengthening public finances and increasing the level of business competitiveness. One of the key mechanisms for combating the shadow sector is the use of economic and legal means that contribute to the de-shadowing of the economy, ensuring the improvement of the regulatory framework, expanding the tools of state control and facilitating the holding of business entities accountable for violating the rules of doing business.

Currently, there are many ways to de-shadow the economy in society, but they all depend on the quality of state control over financial transactions. The vector of state regulation of de-shadowing the economy depends on strengthening financial monitoring, the introduction of modern digital technologies in the field of tax administration, automation of accounting and analysis of financial flows. The outlined measures contribute to reducing the level of tax evasion, preventing money laundering and creating favorable conditions for conducting transparent business.

The fight against the shadow economy should be conducted both at the domestic and international levels. International cooperation in the field of financial control helps to more effectively counteract illegal tax evasion schemes and other financial crimes. Improving state control mechanisms will ensure not only the application of tougher sanctions but also stimulate the voluntary exit of business from the shadows. Special attention is paid to the role of state bodies that contribute to ensuring the transparency of financial flows and preventing financial crimes. As a result, the authors suggest ways to improve the mechanisms of shadowing, in particular through the introduction of digital technologies, automation of financial control, increased responsibility for violations of the law, as well as expanding cooperation in the field of exchanging achievements in protecting financial flows.