Tax and Technology

S. 4901. Introduction

A recent OECD report shows how tax administrations are focusing on the development of digital tax services, the use of Big Data technology tools, and analytics to increase tax compliance. Big Data refers to more than just the aggregation of data from various sources for tax administration purposes. It involves sophisticated technologies designed to also combine data from various sources to analyse and provide deep information about events, taxpayers, processes, etc. and to make data-driven decisions. Big Data technology allows revenue authorities to aggregate all data available, collect taxes more efficiently, deliver better tax service to taxpayers, control tax compliance, and fight tax avoidance.

Simultaneously, the strategic mission of Big Data technology for tax administrations is to facilitate voluntary tax compliance by simplifying interactions with taxpayers and providing digital tax services. This mission is driven by the recognition that taxpayers are more likely to comply with tax laws when the process of filing and paying taxes is simple and transparent.

Section 2 examines sources of Big Data available to revenue authorities worldwide, covering traditionally...