An Uneven Impact of Emerging Technologies on Taxpayers With Various Income Levels Audited by the IRS: Empirical Evidence From an AI Technology Application and Regression Models

This study aims to investigate the influence of emerging technology adoption on tax compliance, encompassing both the Internal Revenue Service’s (IRS) compliance audits and taxpayers’ compliance performance (collectively, tax compliance). We employed the Gradient Descent optimization algorithm, an artificial intelligence (AI) technology application, to scrutinize the connection between the quality of US tax filings and the development of emerging technology, among other contributing factors. Additionally, we utilized multiple linear regression to evaluate the relationships between dependent variables, specifically IRS audit rates and the no-change rate at different income levels,1 and several independent variables, including a proxy for emerging technology in the form of tax software. Our findings reveal that while emerging technology significantly impacts tax compliance within the IRS and taxpayers’ performance, its effects vary across income groups. Notably, emerging technology seems to confer greater advantages to higher-income individuals compared to their lower-income counterparts. These study results hold considerable policy implications for government decision-makers in promoting the adoption of emerging technology among lower-income taxpayers.

Voluntary tax compliance behavior of individual taxpayers in Pakistan

Governments settle their financial obligations and pay for the public expenditures largely through finances generated from taxes.For many developing countries like Pakistan,the state authorities are still having difficulty to achieve tax compliance.Existing literature has yet to traverse individual’s tax compliance behavior on developing countries.The current study,however,explores the relationships among voluntary tax compliance behavior of individual taxpayers with selected economic,social,behavioral and institutional factors.This individual tax compliance behavior is studied through the multi-perspective lenses of the theory of attribution,equity theory,expected utility theory,and social exchange theory.Quantitative design using the survey method was employed to collect data from 435 individual taxpayers through questionnaire.For testing linkage between constructs,through mediation and moderation tests,structural equation modeling technique was used.The results suggest that tax compliance simplicity has a larger impact on tax filing than perception about Government Spending and tax morale.Furthermore,perception of fairness significantly mediates the strengths between morale,simplicity,government spending and compliance behavior.

Taxpayers Fraudulent Behavior Modeling The Use of Datamining in Fiscal Fraud Detecting Moroccan Case

The fraudulent behavior of taxpayers impacts negatively the resources available to finance public services. It creates distortions of competition and inequality, harming honest taxpayers. Such behavior requires the government intervention to bring order and establish a fiscal justice. This study emphasizes the determination of the interactions linking taxpayers with tax authorities. We try to see how fiscal audit can influence taxpayers’ fraudulent behavior. First of all, we present a theoretical study of a model pre established by other authors. We have released some conditions of this model and we have introduced a new parameter reflecting the efficiency of tax control;we found that the efficiency of a fiscal control have an important effect on these interactions. Basing on the fact that the detection of fraudulent taxpayers is the most difficult step in fiscal control, We established a new approach using DATA MINING process in order to improve fiscal control efficiency. We found results that reflect fairly the conduct of taxpayers that we have tested based on actual statistics. The results are reliable.

Impact of Tax Audit on Tax Compliance with Reference to Category“A”Taxpayers:A Case Study in Hawassa City Administration,South Nations,Nationalities and Peoples’Regional State of Ethiopia

The main issue faced by all tax authorities is that it has never been easy to persuade all taxpayers to comply with the regulations of a tax system.Business sector is one of the fastest growing sectors of the economy in Ethiopia.The study specifically sought the effect of tax audit,fines and penalties,and tax education and knowledge on tax compliance in Hawassa City,south nations,nationalities and peoples’regional state.Population under this research comprises Hawassa City audit officers who are 50 audit officers.Since the number of staff is not large,the study used census approach.Data were collected using structured questionnaire,both primary and secondary data were used.Descriptive statistical tools and correlation and multiple regressions analysis were used in analyzing the data collected.The study findings showed that probability of tax audit,and tax knowledge and education have positive effect on level of tax compliance.Similarly,fines/penalties have positive effect on level of tax compliances.The study provides some preliminary evidence that probability of tax audit,imposing fines/penalties and provision of tax knowledge and education will improve tax compliance.There should be stiff enforcement of fines and penalties to deter tax evasion.Additionally,tax authorities should simplify processes involved in filling of returns and payment of taxes.

The Impact of Tax Policies on Taxpayers Budget in Terms of Risk, Sensitivity and Volatility

Local and central governments are concerned to develop fiscal policies that are based on principles already enshrined in the literature as the principle of equity and/or the principle of fiscal appropriateness. Beyond these principles, the governments want to make sure that all taxpayers have the capacity to pay at maturity the tax debts owed to the public budget. In crisis situations, as recent experience has shown, governments adopt fiscal policy measures, with the sole purpose of procuring financial resources to cover the huge government budget deficits. In this situation, a natural question arises： Do governments need, for the elaboration of their fiscal policy, an analysis that takes into account the taxpayer＇s budget？ Or is it sufficient that they confine only to the theoretical principles enshrined in the literature or the tax paying ability of the taxpayers？ The answer can only be affirmative, because any taxpayer＇s budget is an inexhaustible source of resources for the public budgets. It is undisputed that in the taxpayer＇s budget, the tax expenditures coexist with other categories of expenditures such as consumption expenditures, durable expenditures and public utilities expenditures. Each expenditure type is risk-bearing. To study the structure of budget expenditures within the taxpayer, the authors suggest the use of three indicators innovative for the science of public finance： the risk, the sensitivity coefficient and the coefficient of volatility. Depending on the values registered by the three indicators of fiscal policies, expenditures can be classified as risky, volatile and sensitive which may lead to risks of failure to collect the taxes and/or to tax evasion. Innovative for the science of public finances is that the fundamentation of the fiscal policies is realized using the three indicators, the budget of the taxpayer and the networking between the categories of expenditures that fall within its budget structure

Influencing Factors of Taxpayers'Tax Compliance in the Perspective of Government Governance

At present,government governance reflects that the new public management plays an irreplaceable role in promoting the social participation of democratic individuals,stimulating the vitality of the society,as well as improving the equal consultation between citizens and governments under the guidance of the governance spirit.Especially in the process of transformation of the industrial society,significant changes have taken place in government governance modes.The government plays important roles in the democratic society to form clear theoretical frameworks in view of then-understanding towards the modernization of government governance.With significant development of information technology,existing modes of social and economic developments had transformed in addition to profound social changes.These developments would affect the research on government governance.In the perspective of government governance,it is of great significance to explore its role in the influence towards tax compliance especially under the current system and mechanism to create an excellent tax compliance spirit.From existing research,the main aspects used in measuring government governance are the openness of government affairs,social justice,and individuals5 understanding of the tax law.With existing research,201 survey questionnaires of the subjects,validity analysis,descriptive statistics analysis,correlation analysis,regression analysis,and other methods,this study made bold assumptions on the relationship between government governance and tax compliance.The conclusion in which government governance,measured in terms of government affairs,degree of social justice,and personal understanding of the tax law would influence taxpayers5 tax compliance in terms of then-consciousness towards tax compliance.At present time,the study of government governance and taxpayers,tax compliance has practical significance and application value.This study would provide an opportunity for citizens to have a preliminary understanding of overall tax compliance and maintain the spirit of tax compliance from an individuaFs subjective consciousness in addition to providing suggestions to improve government governance for promoting tax compliance.

Enhance Interaction Between Taxpayers and Tax Administrations to Serve Modern Tax Governance

The State Taxation Administration of China(STA)has strengthened interaction between taxpayers and tax administrations by collecting and classifying taxpayers’needs,responding to common and individual demands in all aspects,as well as evaluating and improving the effectiveness of interaction.This article briefly introduces the initiatives,achievements and related experience of the Chinese tax authorities in strengthening interaction between taxpayers and tax administrations in recent years.

A self-employed taxpayer experimental study on trust,power,and tax compliance in eleven countries

The slippery slope framework explains tax compliance along two main dimensions,trust in authorities and power of authorities,which influence taxpayers’compliance attitudes.Through frequentist and Bayesian analyses,we investigated the framework’s assumptions on a sample of 2786 self-employed taxpayers from eleven post-communist and non-post-communist countries doing business in five economic branches.After using scenarios that experimentally manipulated trust and power,our results confirmed the framework’s assumptions regarding the attitudes of the self-employed taxpayers;trust and power fostered intended tax compliance and diminished tax evasion,trust boosted voluntary tax compliance,whereas power increased enforced tax compliance.Additionally,self-employed taxpayers from post-communist countries reported higher intended tax compliance and lower tax evasion than those from non-post-communist countries.Our results offer tax authorities insights into how trust and power may contribute to obtaining and maintaining high tax compliance levels amid global economic challenges,downturns,and increasing tax compliance costs.

A Feasibility Study on the Implementation of External Tax Audit in Malaysia

This study examines the feasibility of external tax audit implementation in Malaysia. External tax audit has been purported to enhance tax administration efficiency, deter tax evasion and noncompliance as well as improve tax collection for a nation. Therefore, this study solicits perceptions from various stakeholders on the new service while retaining the principle of justice that lies in the tax system. External tax audit refers to the process of business income tax returns being attested by other than the tax authority. External tax audit has been implemented successfully to increase tax compliance in some areas such as Taiwan, Bangladesh and United States of America. Therefore, this study examines the benefits and risks influencing the implementation of external tax audit in Malaysia from the viewpoints of corporate taxpayers and tax agents. Data is obtained through questionnaire from the selected respondents. Findings from multiple regression analysis reveal that tax agents and taxpayers agree with the implementation of this new service. For tax agents, the external tax audit has benefits and risks, while taxpayers believe that only benefits influence their agreement to the external tax audit. This study contributes to the tax literature by providing knowledge on the feasibility of external tax audit implementation in Malaysia.

Comparison of Electronic Taxpayer Services in OECD Countries and Recommendations for China

Through comparing development trend electronic taxpayer services in OECD countries and analyzing its drawbacks,it gained beneficial experience of electronic taxpayer services.Then,it came up with policy recommendations for China.It is recommended that China should raise the electronic taxpayer services to national strategy level,improve the efficiency of electronic taxpayer services in line with the taxpayercentered principle,develop ways of electronic taxpayer services with Chinese characteristics,increase convenience for taxpayers on the precondition of guaranteeing information security,make effort to reduce compliance costs of taxpayers,and promote popularization of electronic taxpayer services with the framework of laws.

Transparency of Tax Law and Tax Administration

Transparency of tax law and tax administration is vital to the fair,effective and efficient operation of a tax system.To achieve and improve transparency,various means and channels are available.This article sets out the measures adopted by the Government of the Hong Kong Special Administrative Region in promoting and improving transparency of tax law and tax administration.

A New Citizen Service for a New Age:Actions Taken by the Spanish Tax Administration

Tax Administrations make big efforts to provide citizens the information and assistance they need and have increased remote services through digital channels.However,customer service has deteriorated in many cases especially after the pandemic,due to lack of resources and sometimes impacted by the consequences of the extension of remote work.The Spanish Tax Administration has developed a new service strategy,which aims to deliver homogeneously any service as needed so that citizens can choose whatever service that is more convenient to them,remote or face-to-face.From the perspective of its staff,any staff will be enabled to provide any service through any channel.

The Future of Tax Administration

This article analyzes the historical progression of tax administration in the utilization of computer technology since the mid-20th century.The digitalization of tax administration is divided into three main stages which are elaborated respectively.The most precise analysis is performed for today's practice with using of machine learning and artificial intelligence(ML&AI),and the key areas for ML&AI implementation in tax administration are identified.Some examples and results of applying ML&AI tools in Armenian Tax Administration are also presented.Plans for future activities in the area of digitalization are also presented.The article also tries to predict in which direction progress will go,what will be the most important change in Tax Officer vs.Taxpayer Cooperation.

Optimization of Taxpayer Services and Improvement of Business Environment in Serbia

In 2023,the Tax Administration of the Republic of Serbia(STA)is in the process of the implementation of the Transformation Program 2021-2025.On its way to the establishment of a modern and efficient administration,the STA develops communication channels and a wide range of services for taxpayers in order to facilitate the communication between taxpayers and the tax administration and create an environment for easier and fair business.

The Practices and Experience of Digitalisation of Tax Administration in Singapore

Tax administrations around the world have been digitalising to improve services delivery and internal processes.This article provides an overview of the Inland Revenue Authority of Singapore’s digitalisation strategies,focusing on enhancing customers’experiences,modernising systems,adopting Artificial Intelligence and analytics,and empowering its people through capability building.

Undertaking Solidarity and Firmness:Progress and Prospect in the Reform of Administration of Tax Collection

Over the past two decades,China's tax law reform has become a highly valued and distinguished area for earnestly advancing Chinese socialist rule of law construction.With the establishment of the principle on strengthening legality of imposing tax,as well as new settings regarding China's social and economic development,the administration and management of tax collection and protection of taxpayers'well-being gradually and vigilantly attain responsiveness from top national legislators and scholars.Meanwhile,the efforts exerted by tax administers on fighting tax evasion have been elevated on both international and domestic grounds.For example,a focal area is the evaluation and collction of presumptive tax which is a common routine for administers around the world.Moreover,the current laws and regulations on administering tax collection invite a rigorous process of revision and modification with contermporary conceptions of taxpayers'well-being.This article argues that,through the example of presumptive tax collection,the administration and management of tax collection should adhere to the basic principles of protecting taxpayers and advancing the goals of de-administrating arduous procedures to conform to new trends of social and economic development.It also proposes that the vigor and dynamics of tax collection efforts should coincide with national goals of reformulating the individual income tax collection mechanisms,solidifying the national conversion of business tax to value-added tax,matching with the new wave of bankruptcy of certain enterprises,and so forth.

More Than Just Tax Administration——Inland Revenue Authority of Singapore

This article is about the efforts of Inland Revenue Authority of Singapore in embracing agility through innovation and digitalisation to provide excellent taxpayer-centred experiences.

BRITACOM and the Digitalization of Tax Administration

This article looks at how enhanced digitalization of tax administration can raise both taxpayer service and enforcement effectiveness and address potential bottlenecks and barriers to BRI trade and investment.The article also draws on the extensive experiences from BRI jurisdictions and elsewhere in the world,points to potential learning points for BRI tax administrations.

The Use of Technology to Enhance Taxpayer Service and Improve Tax Compliance——Experience of Hong Kong, China

The Inland Revenue Department(IRD)is the authority which administers the tax law in the Hong Kong Special Administrative Region of the People’s Republic of China.This article shares the IRD’s experience in applying digitalised tax administration to enhance taxpayer services and improve tax compliance.This can be achieved through developing user-friendly digital platforms for filing and communication,the use of prepopulated tax returns,fillable PDF public forms and online systems for paying taxes,and providing accessible and easy-to-understand tax information on the Internet.