Tax and Technology

S. 5121. Introduction

The emergence of technology during the 21st century was undoubtedly a game changer in a lot of aspects. The developments brought by digitalization promoted significant alterations that demanded a quick response and adaptability of several sectors of the industry and society.

In the field of taxation, the niche of tax compliance was highly impacted by the implementation of technological tools. Tax reporting that once was made by taxpayers through the manual filing of countless documents and assessed by the tax authorities on a case-by-case basis can nowadays be done in a matter of hours (or even less) by filing a software that will process the information and send it to the tax authorities in the blink of an eye.

Despite the progress and benefits brought by technology, achieving tax compliance is not as simple as it may sound. Not only do the new instruments that were developed through the use of technology still demand some improvements to achieve better results, but also the relationship between taxpayers and tax authorities is a point that demands careful attention.

The interrelation between taxpayers and tax authorities has been an object of study and observation thr...