Generative AI:The Power Behind Large Language Models and Its Use in Tax Administration

This article examines the potential of Generative Al to transform the operation of tax systems and the potential barriers that will have to be overcome.It is intended to start a conversation amongst BRI tax administrations on the areas where Al could have the greatest impact on taxpayer service and compliance.

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.

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.

Exploring Corporate Tax Compliance in the Era of Digital Tax Collection and Administration:Insights from the“Golden Tax Phase Four”Project

This article primarily examines the current state of tax collection and management,alongside other associated issues.It integrates insights from China’s“14th Five-Year Plan”and anticipates the imminent implementation of the“Golden Tax Phase Four.”With this backdrop,the article offers recommendations for advancing the reform of the tax collection and management system,fostering the development of intelligent taxation,and accelerating the modernization of tax collection and management in China.

Enhance Tax Administration Cooperation in the Spirit of the Silk Road:A Glance at BRITACOM on the 10th Anniversary of the Belt and Road Initiative

In April 2019,the Belt and Road Initiative Tax Administration Cooper-ation Mechanism(BRITACOM)was inaugurated in the spirit of peace and cooper-ation,openness and inclusiveness,mutual learning,and mutual benefit,to ensure unimpeded cross-border capital flow and facilitate trade and investment through tax administration cooperation.During the past four years,it has produced promising outcomes in tax cooperation,capacity building and mutual learning.Going forward,the BRITACOM will carry out practical cooperation of a wider scope,in broader ar-eas,and at elevated level,to revive the spirit of the Silk Road in the new era.

Enhancing Tax Administration Capacity

The COVID-19 pandemic has shown us the societal importance of tax administration service delivery capacities and agility.Tax administration capacity is a key factor for nurturing both societal resilience and domestic resource mobilisation.Tax administrations around the globe are implementing new digital technologies to enhance taxpayer service quality,reduce operational and compliance burdens and increase revenues.In addition to the ongoing incremental improvement of the core tax administration functions,there are also increasing signs of transformation towards a more fundamental change in the nature of tax administration.This concerns a more system-wide compliance management approach in which tax administrations try to closely engage with the natural systems that taxpayers use to manage their business,engage in transactions and communicate in order to reduce errors,minimise burdens and increasingly build tax compliance.This paper explores the way in which tax administrations are enhancing the capacity of core functions and are preparing for a more holistic compliance management approach,including using an increasing amount of digital data sources facilitated by the introduction of new digital innovations.

The Use of Digital Technology by Belt and Road Tax Administrations

The growing trading links in the modern world have made it more difficult for tax administrations to monitor the activities of multinational enterprises(MNEs)operating on their territory.Advanced technology and communications have been used by MNEs to increase the scope of their operations and create global supply chains,while tax administrations try to use limited resources to apply the tax rules.The development of digital technology within government can help tax administrations to implement the latest international tax rules and monitor taxpayer activities more completely,improving domestic resource mobilisation.A benefit of more digitalisation for tax administrations is the ability to manage data and use analytical tools to make the best use of the data acquired.Wider international tax cooperation has provided tax administrations with access to information from country-by-country(CbC)reporting,the common reporting standard(CRS)and the exchange of tax rulings.These give tax administrations access to large volumes of data in relation to cross-border activities to facilitate risk assessment.Digitalisation can also reduce the compliance burden of taxpayers by making it easier to complete their tax obligations,helping them to integrate taxation processes into their routine business systems.Full use of technology combined with adequate governance can boost the efficiency of tax administration.The Belt and Road Initiative Tax Administration Cooperation Mechanism(BRITACOM)can be a platform for cooperation among tax administrations to gain more efficiency.It is important for BRI tax administrations to learn from each other through sharing their knowledge and experience in the introduction of digital technology.

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.

The Application of Digital Technology in Optimizing the Business Environment in Tax Administration

This paper examines the potential benefits of digital technology in tax administration in African countries.It proposes three hypotheses:(i)digital technology can reduce the compliance burden on businesses and taxpayers,(ii)it can improve the efficiency and effectiveness of tax administrations,and(iii)it can enhance the transparency and accountability of tax administrations.The study mentions econometric models to test these hypotheses for further quantitative evidence.The Federal Inland Revenue Service(FIRS)in Nigeria serves as a case study,showcasing the positive impact of digitalization efforts on tax revenue collections.These efforts have reduced the compliance burden,improved data accuracy and timeliness,and enhanced communication between taxpayers and the tax authority,even during the COVID-19 pandemic that has elicited the importance of digitalization in tax administration,thanks to the various technology-driven initiatives such as Integrated Tax Administration System(ITAS),Standard Integrated Government Tax Administration System(SIGTAS),and TaxPro-Max implemented over the years.The West African Tax Administration Forum(WATAF)supports e-tax administration initiatives to automate processes and improve service delivery.The paper urges developing economies to embrace centralizing and standardizing digital technology transformation initiatives,for it is crucial for building institutional capacity and effective resource utilization in tax administration.

The Tax Administration Diagnostic Assessment Tool: Overview and Insights To-date

Premised on international good practices,the Tax Administration Diagnostic Assessment Tool(TADAT)provides a standardized and objective framework for conducting an evidence-based and outcome-focused assessment of the key strengths and weaknesses of a country’s tax administration system.TADAT is a global tool that applies to any country’s system of tax administration.The results of a TADAT assessment provide country authorities,supported by their capacity development partners,with a baseline to strengthen or develop,and monitor tax administration reform strategies and work plans.

Digitalization of Tax Administration in Kazakhstan

Technology progress is changing the working methods of state authorities.The development strategy of the state revenue authorities of Kazakhstan envisages the use of information technologies and information systems to improve the quality and effectiveness of the functions.This article describes the main information systems used at this stage,and the benefits for the country using them.

Enhancing Tax Administration Capacity Building in Developing Countries: A New Zealand Perspective

For developing countries,raising revenues and protecting their tax bases are more important than ever in recovering from the pandemic.As a small developed country,New Zealand endeavours to provide capacity building assistance to developing regions,especially the Pacific Islands.Assistance provided encompasses the development of core taxation systems as well as international tax matters such as the establishment of exchange of information programmes and the implementation of international tax standards.Working in partnership with international and regional organisations has proved beneficial,as demonstrated in the Pacific Initiative delivered over the last two years.Cost-effective and well-organised virtual delivery of training courses has functioned particularly well during the pandemic and will continue to feature prominently in future assistance work.

Enhancing the Capacity of Tax Administrations to Develop Tax Policy

Building capacity in tax administrations will be key in coping with the new challenges arising from the new ways of doing business.This article discusses three topics that will require the building of new assessment and tax collection capabilities within tax administrations,namely:the digital economy,cryptocurrency taxation,and environmental taxation.It proposes issues that will require further attention and consideration by tax administrations wishing to collect the rent attributed to these activities.It is contended that new capacities will have to be developed not just to handle the“new”forms of doing business,but also to generate income and to allow for a harmonized environment that facilitates and draws investment to Belt and Road Initiative jurisdictions.The transformation ought to occur while“traditional”issues in international tax administration and cooperation persist.

Preparing for Pillars One and Two: How Tax Administrations Can Get Ahead of the Game

Implementing and complying with the requirements of the OECD/G20 Inclusive Framework’s Two-Pillar solution presents enormous practical challenges for taxpayers and tax administrations.Not least of these is a complex data challenge with over 120 data points needed for Pillar 2 alone.To tackle these effectively,tax administrations should work with each other,and with taxpayers,to develop a coordinated approach drawing on the concept of Cooperative compliance.Such an approach should aim to reduce the administrative burden,increase certainty,and provide a joint learning curve for tax administrations and taxpayers.Developing the right data systems and training people to work with the data will take time and need to start now;if businesses and tax administrations wait until all the rules and regulations have been finalised,it will be too late.In addition,the Pillar 2 Model Rules do not provide for a multilateral mechanism to determine and allocate the top-up tax.The Belt and Road Initiative jurisdictions could consider working together to develop a binding mechanism to allocate the top-up tax between themselves.

Effect of Digitalization on Serbian Tax Administration Reform

This article introduces the digitalization trends in the Republic of Serbia and its impact on transformation processes within Serbian Tax Administration,with short overview of a case study—unified collection.

Enhancing Tax Administration Capacity Building in Italy

This article focuses on the means and strategies envisaged and adopted over the years by the Italian Revenue Agency to provide excellent,agile and more taxpayer-centred services through innovation and digitalization.All these measures have been implemented to strengthen the effectiveness of tax system to guarantee a continual flux of domestic resources essential for good governance,investments,sustainable growth and stability in response to the needs of the country.In particular,due to the continuous and steady communication with taxpayers,the Italian Revenue Agency has embraced new and innovative ways to grant fair taxation and respond to changes in society.This innovative approach resulted in a full kit of accessible e-services to millions of taxpayers.

Enhancing Tax Administration Capacity Building: Macao SAR Experience

The fast pace of development in the international tax matters requires enhancement of tax administration capacity building.The outcomes of the Final Report of the Enhancing Tax Administration Capacity Task Force released in September 2021 confirmed the increasing demand of the BRI jurisdictions for capacity building in international taxation.This article reflects on possible areas and approaches for capacity building enhancement.It proposes some initiatives that may be developed to help address the gaps among the BRI jurisdictions and contribute to building the capacities of their tax officials.This reflection is made with a view drawn from the experience of the Macao SAR as one of the first Belt and Road Initiative tax academies.

Applications and Future Outlook of Blockchain Technology in Digital Tax Administration——Case Study of Blockchain Invoice System in Shenzhen Tax Service,STA

In recent years, with the accelerating digitalization of economy, the necessity for digitalizing tax administration becomes increasingly prominent. As a new technology based on digital information storage and processing, blockchain provides a new solution to digital tax administration, particularly given its tamper-proof feature. This article introduces the innovative application of blockchain technology in electronic tax invoice, including its management model and technical implementation method. It elaborates the breakthrough of the blockchain-based electronic tax invoice in digital management by focusing on the essential function and whole-process management of tax invoice as well as the value of data, and discusses the practical value and other applicable scenarios of blockchain technology in digital tax administration.

Enhancing Tax Administration Capacity Building

This article tracks how OECD capacity building has evolved since 1992,alongside the evolution of international taxation,tax administrations,and their needs for support.In doing so it identifies some of the key lessons for tax administrations and their partners in building the capacity to respond to the current challenges and opportunities.It places a particular focus on digitalisation and the implications for tax administrations,both in respect to the implementation of the Two-Pillar Solution to the taxation of the digitalising economy,and digitalisation of the tax administration itself.

COVID-19: Tax Administrations at the Forefront

Since the outbreak of COVID-19,Tax Administrations(TAs)have been at the forefront of this battle,fighting to continue on business,trying to help the economy to keep on working and planning the recovery scenario.In this article we summarize some of the actions adopted by TAs in this three fields.During this period,Inter-American Center of Tax Administrations(CIAT)is trying to help tax administration community coordinating efforts with other international organizations,producing timely documents and promoting new and innovative working methodologies.