Economic Mechanisms for Preventing Tax Evasion and Financial Crimes: Cross-Country Evidence

Article DOI: https://doi.org/10.57017/jaes.v21.si.1(91).05

Author(s):

Dmytro TYCHYNA Research Laboratory on the Problems of Combating Crime of the Educational and Research, National Academy of Internal Affairs, Kyiv, Ukraine
Nataliia TOPCHII Department of Administrative and Criminal Law, Oles Honchar Dnipro National University, Dnipro, Ukraine
Yuliia MOROZ Department of Private Law, State Tax University, Irpin, Ukraine
Myroslava PASEKA Department of Social, Humanitarian and Legal Disciplines, Faculty of Management, Uman National University, Uman, Ukraine
Oleksii MATSAK Interregional Academy of Personnel Management, Kyiv, Ukraine

Abstract:

This study explores the development and implementation of economic mechanisms designed to prevent financial crimes within the tax system, specifically focusing on the challenges faced by Ukraine as a transitional economy. Financial sustainability in emerging markets is fundamentally tied to the integrity of tax administration; systemic tax evasion and financial crimes create fiscal deficits that undermine structural reforms. Using a multi-disciplinary approach, this paper analyses the effectiveness of current preventive measures against international benchmarks established by the OECD and the European Union.

The research identifies critical structural vulnerabilities in the current tax system and proposes a modernized framework of "Economic Mechanisms" that includes digital transparency, risk-based auditing, and international information exchange protocols. The findings suggest that transitioning from reactive legal enforcement to proactive economic prevention significantly reduces the "tax gap" and enhances the state's fiscal resilience, safeguarding tax revenues, these mechanisms provide the necessary financial stability to support broader structural reforms and long-term economic growth. The study offers practical recommendations for policymakers to align national tax enforcement with global standards, ensuring corporate and state financial sustainability in volatile transitional environments.

Copyright© 2026 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Article’s history: Received 17th of November, 2025; Revised 19th of December, 2025; Accepted 10th of January, 2026; Available online: 15th of March, 2026. Published as article in the Volume XXI, Special Issue 1(91), 2026.

How to cite:

Tychyna, D., Topchii, N., Moroz, Y., Paseka, M., & Matsak, O. (2025). Economic Mechanisms for Preventing Tax Evasion and Financial Crimes: Cross-Country Evidence. Journal of Applied Economic Sciences, Volume XXI, Special Issue, 1(91), 99 – 114. https://doi.org/10.57017/jaes.v21.si.1(91).05

Declaration of Conflict Interest: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Acknowledgments/Funding: N/A.

Data Availability Statement: The data that support the findings of this study are available from the corresponding author upon reasonable request.

Ethical Approval Statement: Ethical approval was waived due to the use of secondary data sources and the retrospective nature of the study. All data used were either publicly available or derived using custom text-mining scripts, and no human participants were involved.

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