What is it about?
The article discusses the role of digital technologies, specifically e-invoicing and prefilled tax returns, in transforming tax administration. These technologies help reduce costs and improve efficiency for both businesses and tax authorities. E-invoicing automates invoice processing and reporting, making tax compliance easier and reducing the risk of errors and fraud. Prefilled tax returns simplify the filing process by allowing tax authorities to automatically input data, which taxpayers then review and confirm. Both innovations are seen as key steps towards more transparent and effective tax systems, benefiting governments, businesses, and taxpayers by streamlining operations and reducing administrative burdens.
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Why is it important?
The digital transformation of tax administration through e-invoicing and prefilled tax returns is important for several key reasons: Efficiency: These technologies significantly reduce the time and resources needed for tax filing and administration. Automation minimises manual data entry, speeds up processes, and reduces human errors. Cost Reduction: Governments and businesses save money by streamlining the tax process. Compliance costs are lower for businesses, and for governments, it cuts down on the administrative costs involved in processing tax returns. Increased Compliance: E-invoicing and prefilled returns reduce the risk of tax evasion and fraud by ensuring that accurate data is reported in real-time. This helps governments collect taxes more effectively and ensures businesses meet their obligations more efficiently. Transparency and Trust: These technologies foster a more transparent tax system, as taxpayers can easily verify and review prefilled data, building trust between tax authorities and businesses. Scalability: As economies grow and the number of taxpayers increases, digital systems like e-invoicing and prefilled returns can be relied upon to handle larger volumes more effectively than traditional paper-based systems.
Perspectives
This publication effectively highlights the significance of digital tools like e-invoicing and prefilled tax returns in transforming tax administration. It underscores the importance of improving efficiency, cutting costs, and enhancing transparency in tax processes, benefiting businesses and governments. The research emphasises the potential of these technologies to modernise outdated systems and build trust between taxpayers and authorities. It also draws attention to the challenges, particularly in developing countries, where financial and technical barriers may hinder the adoption of such innovations. Overall, the study presents a valuable vision of the future of tax management.
Siamand Hesami
Bournemouth University
Read the Original
This page is a summary of: Digital Transformation of Tax Administration and Compliance: A Systematic Literature Review on E-Invoicing and Prefilled Returns, Digital Government Research and Practice, January 2024, ACM (Association for Computing Machinery),
DOI: 10.1145/3643687.
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