Transformation of the legal regulation of tax liabilities under martial law

Abstract

Problem setting. The imposition of martial law in Ukraine has posed fundamental challenges to the country’s economic and financial systems, requiring the immediate adaptation of tax legislation to these extreme conditions. During this period, the tax obligation is transforming from a purely fiscal category into a strategic factor in ensuring national security, as stable budget revenues are the key to the state’s economic security and the ability to independently finance defence needs. The need to balance filling the state treasury with preserving the viability of businesses affected by hostilities creates an urgent need to establish flexible administrative mechanisms. Analysis of recent research and publications. The specific features of tax relations under martial law have been the subject of scholarly works by a number of Ukrainian scholars and legal experts, among whom the following are particularly noteworthy: Bilinskyi D., Kobylnik D., Shevchyk O., Salienkov A., Holovan T., Hamaniuk L. An increasing number of Ukrainian scholars are conducting research on the specifics of fulfilling tax obligations during martial law, but this area requires close attention due to the extraordinary number of legislative changes and the unique nature of the current situation. The purpose of this article is to provide a theoretical and legal analysis of changes in Ukraine’s tax legislation under martial law, particularly those concerning the fulfillment of tax obligations, to identify challenges in their implementation, and to develop practical recommendations for improving the effectiveness of the tax system under martial law. Article’s main body. This article examines the transformation of the legal regulation of tax obligations in Ukraine under martial law. It is argued that during a period of armed aggression, tax obligations take on not only fiscal but also strategic significance, since the stability of tax revenues directly affects the state’s economic and financial security, as well as its ability to meet defence needs. The article analyzes the main changes in tax legislation introduced after the imposition of martial law and their impact on the procedure for fulfilling tax obligations. Particular attention is paid to the characteristics of the three main stages of fulfilling tax obligations: maintaining tax records and documenting business transactions, filing tax returns, and paying taxes and fees. It has been established that each of these stages has undergone significant changes under the influence of wartime circumstances. Key problems have been identified, including the loss of source documentation due to hostilities, the uncertainty of criteria for assessing the ability to fulfill tax obligations, difficulties in accessing the tax authorities’ electronic services, as well as the risks of abuse of tax incentives and special tax regimes. Conclusions and prospects for development. It has been demonstrated that the current model of legal regulation requires further improvement by increasing legal certainty, unifying approaches to confirming the inability to fulfil tax obligations, and minimizing the discretionary powers of tax authorities. It is proposed to strengthen the digitalization of tax administration, automate procedures for verifying taxpayer status, and ensure the integration of state information resources, which will help achieve a balance between the state’s fiscal interests and the need to support businesses under martial law.