Digital Transformation Challenges to the Tax Security of the State in Russia and Other BRICS Countries

BRICS Law Journal. 2023. Vol. 10. No. 4. P. 142–161.

K. Ponomareva

The digitization of the economy creates new challenges that affect the tax security of a state. These challenges have both positive and negative effects on the economy. This study is devoted to the challenges brought about by a digital economy that result in the necessity of responses from governments and international organizations. First and foremost, there is a lack of necessity for physical presence in the digital state. Second, there is a significant need to offer incentives for IT companies that are, on the one hand, the key leaders of the economy in the modern world and, on the other hand, have been most affected by the conditions of economic crises since 2020. This article is part of a project that is aimed at solving the problem of forming the concept of tax security in order to prevent or neutralize the influence of negative geopolitical and foreign economic factors on the development of the various economic sectors with the help of economic and legal instruments. Thus, this article sheds light on the experiences of the BRICS member states, especially those of the Russian Federation, in facing and addressing the challenges that result from the rise of a digital economy.

Ключевые слова: BRICS, taxation, tax administration, Tax compliance, tax law, Tax security