Tax and Technology

S. 4681. Introduction

The tax function historically focused on manual compliance and reporting activities lags behind in adopting technology for improved efficiency and performance. However, tax field starts to take part in embracing technologies in order to keep up with the digitalization era and global tax environment that requires more transparency. As a matter of fact, the rapid pace of technological advancements has brought a number of challenges as well as innovative solutions for many sectors in recent years. It brings the possibilities for the tax field to tackle one of the main issues faced by global tax authorities, namely generating more tax revenue with limited resources as they confront yearly revenue losses due to non-compliance, evasion, fraud, and uncollected taxes.

Technology advancements are revolutionizing the approach of tax administration by offering new possibilities for administering the tax, assisting taxpayers, and promoting their involvement. The adoption of advanced digital solutions goes beyond the filings and extends the use of statistical and data-mining technologies for identifying anomalies and patterns that enable tax authorities to proactively tackle a bro...