Tax revenue in many low- and middle-income countries is inadequate for funding investments in public goods and human capital. With high levels of informality and limited state capacity, many tax authorities have difficulty determining the true tax base and collecting taxes efficiently and equitably. Tax authorities are increasingly adopting new technologies to improve administrative processes, reduce taxpayer compliance costs, and enhance their overall effectiveness. This paper reviews the recent literature on the use of technology for tax administration. It highlights the potential of technology to improve tax collection by helping to identify the tax base, monitor compliance and facilitate compliance. It also identifies possible limitations to the use of technology arising from inadequate infrastructure and connectivity, lack of adoption or resistance by taxpayers and tax collectors, lack of institutional mainstreaming, and an unsupportive regulatory environment.
Details
-
Author
Okunogbe,Oyebola Motunrayo, Santoro,Fabrizio
-
Document Date
2021/11/15
-
Document Type
Policy Research Working Paper
-
Report Number
WPS9848
-
Volume No
1
-
Total Volume(s)
1
-
Country
-
Region
-
Disclosure Date
2021/11/15
-
Disclosure Status
Disclosed
-
Doc Name
The Promise and Limitations of Information Technology for Tax Mobilization
-
Keywords
Tax Administration; development research group; tax authorities; tax authority; taxable value of property; Democratic Republic of Congo; use of information technology; corporate income tax returns; use of technology; revenue authority; tax official; real estate tax; tax administration system; high compliance costs; role of technology; lack of awareness; Credit card companies; taxpayer compliance cost; credit card company; new technology; tax base; nationally representative survey; reliance on foreign; impact of subsidies; investment in technology; government to business; natural resource revenue; increasing tax revenue; credit card information; access to computer; tax compliance cost; impact of technology; small business owner; appropriate regulatory framework; impact evaluation methodology; public service provision; financial service provider; government service delivery; input tax credit; profit tax return; flow of information; income tax payment; impact on revenues; credit card transaction; total tax liability; computerized accounting system; Research Support; provision of information; Electronic Payment; tax system; technology adoption; taxpayer population; data warehouse; tax collector; mobile money; collect tax; monitor compliance; digital technology; delivery method; tax obligation; Property tax; paper trail; administrative datum; taxpayer registration; IT Solutions; electronic bill; pay taxes; electronic transaction; risk profile; tax office; individual taxpayer; tax purpose; tax law; registration process; data sharing; tax due; satellite imagery; positive impact; Revenue Management; machine learning; administrative processes; inadequate infrastructure; internal process; tax declaration; future research; tax records; core functions; internet connection; Learning and Innovation Credit; unintended consequence; cash payment; focus group; customs department; human factor; payment solution; legal consequence; collect payment; aerial photograph; discretionary system; Taxpayer Registry; user profile; municipal government; integrated system; property registration; mobile application; administrative complexity; administration process; high ratio; foregone revenue; technology base; no access; competitive imitation; multiple sources; taxable transaction; modern technology; valuable property; high tax; network connection; rental value; market datum; power outage; internal system; data security; socioeconomic disparity; tax withholding; card transactions; small fraction; business process; business requirement; own fund; automated system; sunk cost; practical knowledge; remote location; domestic tax; zero taxes; new entrant; several reasons; strategic behavior; data system; value property; technology investment; residential property; young people; property owner; inventory control; web portal; digital service; tax filing; electronic filing; online communication; online tool; online payment; tax requirements; mixed methods; tax inspector; import value; business reputation; gross revenue; record keeping; business community; facilitation services; increased revenue; technology solution; distribution effect; Performance Pay; bribe payment; business structure; opportunistic behavior; save travel; technology system; private bank; electronic transfer; online system; e-government service; tax registry; trade partner; political support; incentive scheme; enforcement mechanism; information flow; complementary factor; new information; basic infrastructure; tax enforcement; average tax; Tax Code; manual system; audit case; taxpayer education; feedback mechanism; risk model; good information; risk criterion; limited resources; efficient audits; monitoring compliance; policy perspective; Institutional data; political will; anecdotal evidence; constitutional provision; learning module; organizational structure; legal system; government capacity; tax from october; data management; technological transformation; technological innovation; data privacy
- See More
Downloads
COMPLETE REPORT
Official version of document (may contain signatures, etc)
- Official PDF
- TXT*
- Total Downloads** :
- Download Stats
-
*The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.
Citation
Okunogbe,Oyebola Motunrayo Santoro,Fabrizio
The Promise and Limitations of Information Technology for Tax Mobilization (English). Policy Research working paper,no. WPS 9848,COVID-19 (Coronavirus) Washington, D.C. : World Bank Group http://documents.worldbank.org/curated/en/578571636990683326/The-Promise-and-Limitations-of-Information-Technology-for-Tax-Mobilization