A Perspective on the Impact of Digitalization of Tax Administration

Abstract

Through rapid digital change in the Tax Administration the methods of interaction between tax authorities and taxpayers have evolved creating a more effective and transparent systems. This research investigates the significant consequences of implementing digital tax administration and looks at both its positives and negatives. Various innovations including automation and block chain technology are changing the way taxes are collected and enforced. Advantages of implementing digital solutions are increased compliance in tax matters and a lower rate of fraud but they also confront challenges related to information security and the participation of lesser developed economies. This paper presents exemplary approaches and knowledge acquired from the different case studies that established the digital tax systems. It investigates how this system influences taxpayers mainly focusing on small and medium enterprises and the increasing importance of international collaboration in advancing digital tax regulations. In conclusion of the study the long-term implications of digitalization and the needs of developing countries for taxpayer protection are examined along with future research opportunities.