Institutional environment as the basis for the functioning of the tax system

The relevance of the research topic is determined by the decisive role of the tax system in state revenues and their redistribution, as well as its special purpose as an effective instrument of the state financial system. It has been established that the insufficient level of efficiency of the tax system is determined by the unsatisfactory institutional environment of its functioning, represented by formal and informal institutions. The purpose of the article is to study the functional purpose of the institutional basis for the genesis, development and reform of the tax system in achieving national goals of economic stability and growth through the prism of the defining theories of its functioning (D. North, E. Ostrom, O. Williamson, G. Minsky, theories of institutional models of tax system development and public administration in turbulent conditions). The article uses methods of induction, deduction, systematic analysis and synthesis of the main components of the institutional environment for the development of the tax system. The main hypothesis is that the tax system is a set of taxes and fees, the level of functioning of which depends on the quality of the institutional environment (institutions of state power, regulatory and legal framework, trust, tax culture and responsibility, the existence of informal and corrupt tax incentives, digitisation of services and automation of management processes, investment incentives and SME development), which does not fully meet modern requirements. The results obtained confirm the hypothesis. The originality and novelty of the study are determined by the key directions and instruments of reforming the institutional environment for the development of the tax system. Prospects for further research include detailing measures to reform this institutional environment in accordance with turbulent economic conditions.