Risks of abuse of various instruments of tax regulation in the sphere of innovative financing of regions

Modern economic challenges make it increasingly important to improve tax regulation in the field of innovation financing. The aim of the study is to analyse in detail the risks associated with the use of tax mechanisms and to propose measures aimed at their minimisation. The study emphasises the importance of ensuring the openness of fiscal processes and increasing the effectiveness of state support for innovation at the regional level. The problems identified include irrational use of tax incentives, low transparency of fiscal operations, insufficient coordination between federal and regional authorities, and the presence of corruption schemes. These factors negatively affect the effectiveness of measures to stimulate innovation, weaken the tax base and deepen regional disparities. To address these problems, emphasis is placed on the introduction of digital technologies in the administration of tax preferences, including systems based on artificial intelligence algorithms that allow tracking and predicting possible violations. The use of flexible tax support instruments, such as tax deductions for investments in research and development, depreciation premiums and tax holidays for start-ups, are proposed as additional measures. Increasing the level of institutional control, as well as developing mechanisms of interaction between different agencies, can strengthen the confidence of the business community in the tax system and stimulate the development of the innovation sector of the economy. Further research could focus on creating adapted tax incentive models tailored to the unique socio-economic characteristics of regions. There is also considerable interest in analysing the impact of digitalisation of fiscal administration on increasing the openness of tax processes and increasing the inflow of investment in innovative projects.