ACCOUNTING SUPPORT FOR TAX REPORTING: CURRENT TRENDS AND CHALLENGES OF EUROPEAN TRANSFORMATION

Abstract

An important source of information for conducting economic analysis is the tax reporting of the enterprise. The value of tax reporting for analytical research lies in the fact that it is compiled based on accounting data, which must accurately, fully and objectively reflect economic transactions and which all legal entities are required to conduct. The article analyzes the mechanisms of accounting for tax reporting, taking into account the leading world standards and the latest approaches in this direction. The main reasons why taxpayers are interested in auditing financial statements and providing an extended full information certificate have been analyzed. The authors of the article substantiated the purpose and main tasks of conducting accounting support for tax reporting in view of the trends of globalization transformations and economic shifts, taking into account the development methodology and increasing indicators of financial security of business entities. In addition, the research materials argue the importance and significance of the issue of accounting support for tax reporting from the side of a complex system analysis of the problems of European transformation in this concept. The need for a tax audit for business entities and its importance in the system of state financial control in the context of the study of income and taxation are considered. The characteristics of the tax audit are given and the typical errors that can be detected by the tax audit regarding profit and taxation are summarized. Further improvement of the tax audit model is proposed, which should combine two opposite principles - minimizing interference in the activities of conscientious taxpayers and ensuring the mobilization of additional revenues to the budget by removing business from the shadow economy and making a profit. Adoption of the regulatory framework and creation of methodical support for the tax audit of income tax. It has been confirmed that tax audits from the point of view of tax legislation are still procedural actions of controlling bodies. However, in the context of the ongoing discussion regarding the determination of further directions for the improvement of the national system regarding the method of formation, submission and use in the management of tax reporting, a detailed study is required. Thus, from a scientific and practical point of view, the study of the method of formation and use in the management of tax reporting of enterprises is relevant.