American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 23, | April - 2024 P a g e | 265 www.americanjournal.org SOME ASPECTS OF THE IMPACT OF ALGORITHMIC SYSTEMS ON THE OVERALL TAX COMPETITIVENESS INDEX IN TAXATION ISSUES Sh.V. Ganiyev International School of Finance Technology and Science, Professor B. B. Ibragimov International School of Finance Technology and Science, PhD A B S T R A C T K E Y W O R D S Research carried out by the International Center for tax and development (ICTD) has shown that only 23% of developing countries have approved a strategy for digitalization and development of tax administration. But in the context of the digital economy, the issues of improving the elements of tax administration are poorly studied as a holistic system in the direction of automation and digital transformation, as a scientific study. The purpose of the study is to develop proposals for improving the organizational elements of tax administration and increasing the level of cooperation between taxpayers and tax authorities. Tax administration, taxes, index, algorithmic Introduction In a period when production and service are currently recognized as an important organizing factor in the country's economic development, the regulation of relations between state bodies and entrepreneurs-taxpayers and the development of new approaches to this relationship has become the essence of the main content of aspects aimed at the issues of budget-tax policy of fiscal reforms carried out in the country. Research carried out by the International Center for tax and development (ICTD) has shown that only 23% of developing countries have approved a strategy for digitalization and development of tax administration1. The very low rate indicates the need to carry out research that requires a systematic approach in matters of improving tax administration. Last year, 8 trillion sums were not provided to the budget for dividends and tax payments by some state-owned enterprises in Uzbekistan. Tax revenues in Syrdarya and Jizzakh regions increased by 20 1 ICTD American Journal of Business Management, Economics and Banking Volume 23 April - 2024 P a g e | 266 www.americanjournal.org percent, while in Bukhara and Kashkadarya this figure did not reach 7 percent2. President SH.M. Mirziyayev noted, “the heads and deputies of the Regional Tax Department show that the work of the taxpayers in the neighborhood is slow. Therefore, this system was revised and new directions were established”3. Discussion Much attention is paid to improving the effectiveness of tax administration in ensuring sustainable socio-economic development in Uzbekistan. Problems such as shortcomings in the control system over the formation of transfer prices, incomplete functioning of the tax monitoring mechanism and low levels of “tax stability” of taxpayers negatively affect the effectiveness of tax administration. The relevance of the topic of research is determined by the fact that, as a result of scientific research on improving the effectiveness of tax administration instruments, in a word, achieving a result of significant social and economic significance in the content of “taxation is effective”. The study of the issues of strengthening cooperation with taxpayers in increasing the efficiency of Debt Collection, promoting the expansion of tax monitoring coverage, strengthening cooperation in tax policy, liberalization of the punishment system for tax offenses, and the use of fiscal instruments in reducing the size of the hidden economy are important tasks for improving tax administration. Through the improvement of tax administration, scientific research on the optimal implementation of the state budget-tax policy, the achievement of sustainable growth of the economy and employment of the population, the legalization of the activities of the hidden economic sector and the correct distribution of income is carried out in the world's leading universities and scientific centers4. Literature Review Issues of regulation of tax relations A.Timur, A.Smith, D.Ricardo, U.Petty, A.Laffer, T.Gobbs, P.Samuelson, Y.Fisher, K.McConnell, N.Menkyu, S.Brue, W.Belostotskaya, S.Barulin, Y.Kirova, Y.Egorova, D.Chernik, T.Yutkina, V.Titov, L.Min, D.Yum is also explored in his classical works5. 2 https://president.uz/oz/lists/view/6971 3 https://president.uz/oz/lists/view/6971 4Organisation for Economic Cooperation and Development; The International Centre for Tax and Development, ICTD; Institute for Fiscal Studies; The Center for advanced research in Finance, CARF; Japan International Cooperation Agency; The Korea Institute of Public Finance, Koreya; The University of Faisalabad; Centre International de Formation Européenne (CIFE) 5A.Temur «Temur tuzuklari», T.: O’zbekiston.2011y. 143- b., А.Смит. «Исследования о природе ипричинах богатства народов» М. 1935й Т-2 588-589 б., Макконнелл К., Брю С. Экономика. Принципы, проблемы и политика. –М.: Республика, 1992. – 972 с.; Балацкий Е. Лафферовы эффекты и финансовые критерии экономической деятельности // МЭиМО.–М., 1997.–№11.–С. 31-43; Мэнкью Н.Г. Принципы экономики.–СПб: Питер Ком, 1999.– С. 356; Петти У. Трактат о налогах и сборах. Слово мудрым. Разное о деньгах. – М: Ось-89, 1997.– С. 346; Рикардо Д. Начала политической экономии и налогового обложения. Сочинения, том I. Государственное издательство политической литературы.–М., 1955.–С. 360; Самуэльсон П.А., Нордхаус В.Д. Экономика: Пер. с англ.–15-е изд. – М: Бином-КНОРУС, 1999. –С.800; Белостоцкая В.А. Системный подход к измерению налоговой нагрузки//Финансы. – М., 2003. –№336. –37с.; Кирова Е.А. Методология определения налоговой нагрузки на хозяйствующие субьекты //Финансы.–М., 1998. –№9.–С. 30-32; Титов В.В. Влияние налоговой системы на эффективность деятельности предприятия//Финансы. – М, 2006.–№2. –С. 42-46; Черник Д.Г. Налоги. 4-е издание.–М.: Финансы и статистика, 2000.–С. 430 American Journal of Business Management, Economics and Banking Volume 23 April - 2024 P a g e | 267 www.americanjournal.org Also, the problems of improving tax administration has also been studied in the studies A.Vahobov, Sh.Toshmatov, A.Altiyev, M.Almardonov, A.Jo ' rayev, T.Malikov, B.Israilov, O.Abdurakhmanov, B.Toshmurodova, K.Yahyayev, N.Khaydarov, B.Azimov, N.Kuzieva and et al6. But in the context of the digital economy, the issues of improving the elements of tax administration are poorly studied as a holistic system in the direction of automation and digital transformation, as a scientific study. Integration and globalization of the economy and digitization processes in the countries of the world require the improvement of tax administration in accordance with the new economic conditions. The purpose of the study is to develop proposals for improving the organizational elements of tax administration and increasing the level of cooperation between taxpayers and tax authorities. Recent technological advances in various fields are changing decision-making processes. There is increasing evidence that various algorithmic systems can support, serve, or even replace human decisions in public administration7 (König and Wenzelburger, 2021) and taxation (Huang, 2018). The term algorithmic management has become increasingly popular in recent times, although the concept of algorithmic management has been treated differently in different contexts (Katzenbach and Ulbricht, 2019). Both scientists and practitioners advocate the use of algorithms in management. Danaher et al. (2017) even stated that “we [already] live in an age of algorithms, where mathematics and informatics combine with powerful new methods to influence, shape, and guide our behavior and our society management”. The main problems that arise when using algorithms in management can be formulated in the following aspects. The opacity of algorithmic operations: this problem is rarely presented as a “black box”, implying that automated processes in taxation are complex and difficult to explain for learning (Cath, 2018). Corinne Cath, Sandra Wachter, Brent Mittelstadt and Luciano Floridi are based on artificial intelligence, the system or at the heart of the emergence of new problems and “calls” associated with decisions made by an automated system “various effect of a large database” or algorithmic damage8, social justice issues lay down. Given the wide impact of this, these current issues can only be successfully resolved from an interdisciplinary point of view. The concept of Algorithmic Justice has not yet been given significant importance in taxation issues, as long as “Algorithmic Justice” is considered as one of the possible mechanisms for increasing transparency and accountability. In Europe, for example, the idea of the “right to explain” algorithmic solutions are discussed. These right gives individuals the right to explain if the algorithm makes a decision for them (for example, refusal to issue a loan). However, this right has not yet been guaranteed. In addition, the question of how we interpret a” perfect algorithmic explanation” and how these explanations can be incorporated into their automated systems remains open9. 6Ibragimov. B.B. Improvement of methodologia of tax administration The topic of doctoral dissertation (DSc).– T., 2024.– 7 b 7M. Milosavljevic et al. What drives the performance of tax administrations? Evidence from selected european countries. Economic Modelling 121 (2023) 106217. 8As a result of the tax audit conducted by the Tashkent City Tax Department, the system has poured into confusion in the accounting books carried out by the automated system. It is not possible to disclose this information within the framework of the lawyer's secret. 9 Cath, C., 2018. Governing artificial intelligence: ethical, legal and technical opportunities and challenges. Phil. Trans. Math. Phys. Eng. Sci. 376 (2133), 20180080 https://doi.org/10.1098/rsta.2018.0080. Coglianese, C., Lehr, D., 2019. Transparency and algorithmic governance. Adm. Law Rev. 71 (1), 1–56. American Journal of Business Management, Economics and Banking Volume 23 April - 2024 P a g e | 268 www.americanjournal.org The table below shows the International Tax Competitiveness Index in the cross section of some countries in 2023. Table 1. 2023 International Tax Competitiveness Index Rankings Country Overall rank Overall score Estonia 1 100 Latvia 2 88,5 New Zealand 3 86,1 Switzerland 4 84,7 Czech Republic 5 81,2 Luxembourg 6 78,9 Turkey 7 78,6 Israel 8 78,3 Lithuania 9 76,6 Australia 10 75,9 Hungary 11 75 Slovak Republic 12 74,3 Sweden 13 73,3 Netherlands 14 70,6 Canada 15 69,8 Slovenia 16 66,6 Norway 17 66,6 Germany 18 66,6 Finland 19 66,5 Austria 20 65,3 United States 21 65 Costa Rica 22 64,8 Korea 23 61,6 Japan 24 61,5 Greece 25 61,4 Mexico 26 60,1 Belgium 27 60 Ireland 28 58,9 Denmark 29 58,5 United Kingdom 30 56,1 Spain 31 55,8 Iceland 32 55,5 Poland 33 55,3 Portugal 34 52,1 Chile 35 50,5 France 36 49,1 Conclusion In our approach, this index should be relevant in which areas the main goals in the tax strategy in the countries where the digital tax transformation is carried out are focused. In a word, the operation of American Journal of Business Management, Economics and Banking Volume 23 April - 2024 P a g e | 269 www.americanjournal.org automated systems in what state should also be involved as a key factor in the Tax Competitiveness Index. The scientific significance of the research results is reflected in the fact that the conclusions and proposals developed in the work provide opportunities for improving the organizational foundations of tax administration. The practical significance of the results of the study is explained by the fact that the formation of conclusions that serve to increase the level of survival of taxpayers and improve the interaction activities of tax authorities and taxpayers can be used in tax reforms in accordance with the requirements of the period. References 1. Milosavljevic. M. et al. What drives the performance of tax administrations? Evidence from selected european countries. Economic Modelling 121 (2023) 106217. 2. Cath, C., 2018. Governing artificial intelligence: ethical, legal and technical opportunities and challenges. Phil. Trans. Math. Phys. Eng. Sci. 376 (2133), 20180080 https://doi.org/10.1098/rsta.2018.0080. 3. Coglianese, C., Lehr, D., 2019. Transparency and algorithmic governance. Adm. Law Rev. 71 (1), 1–56. 4. Ibragimov. B.B. Improvement of methodologia of tax administration The topic of doctoral dissertation (DSc).– T., 2024.– 81 p 5. ICTD Report 2022 // ictd.com 6. Speech of the President of Republic of Uzbekistan // https://president.uz/oz/lists/view/6971 7. Jasurbek Yusupov, et al. Defining the vat fraud company by using regression model. Economics and Innovative Technologies. 11.5. 2023. 227-236 pp. https://president.uz/oz/lists/view/6971 https://iqtisodiyot.tsue.uz/journal/index.php/iit/article/view/399