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.

Empowering Taxpayers Through Technology-Driven Services and Education

What tasks do technological changes taking place in the world impose on tax administrations,and at the same time,what opportunities do they create in enforcing the principle of public responsibility?How can innovations like European Digital Identity Wallet(EUDIW)be applied in the authentication environment?What assistance can the authorities provide in the integrity of taxpayers'business data?What developments are seen in the work of the Hungarian tax administration to use transaction-based data to contribute to a more modern public administration system and,last but not least,to a fair public burden?How does blockchain as a technology platform support data integrity?How does personalized and easy-to-understand communication revolutionize customer information?These questions are answered in this article.

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.

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.

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.

Taxation and Cooperation at the Service of Development:Algerian Perspective

Given the insufficiency of financial resources,all countries,particularly developing countries,must seek an adequate financial package to ensure economic growth and financing for their development.Faced with a steady decline in oil and gas revenues since 2014,Algeria has adopted a set of measures aimed at diversify-ing its economy so as to reduce its dependence on hydrocarbons,by undertaking budgetary and tax reform to support this new economic vision.These efforts have been consolidated by the establishment of an information exchange system and an international tax cooperation mechanism.Indeed,Algeria’s accession to the Belt and Road Initiative Tax Administration Cooperation Mechanism(BRITACOM)in 2019 and the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2021,testifies to its desire for international cooperation for better mobilization of tax resources.

An Ethical Framework for the Use of AI by Revenue Authorities

The use of Al may give rise to substantial benefits but also significant risks for revenue authorities.This paper provides a brief outline of the perceived strengths and weaknesses of Al and potential use of Al in tax administration.These include the use of Al in risk assessment such as the selection of taxpayers for review or audit,the detection of fraud,nearest neighbour guidance,predictive analysis,anticipating changes in behaviours,improving revenue authorities'internal efficiency including transfer pricing benchmarking,and providing support and guidance to taxpayers through chatbots.Revenue authorities are strong candidates for the use of Al given that data is central to what they do.The paper postulates more than 20principles which could form the basis of an ethical framework for revenue authorities including policies on transparency,communication,traceability,explainability,human supervision,processes for the rectification of errors,data protection,privacy and cyber-security.We believe that the adoption of these policies will reduce risks to revenue authorities and build trust in tax systems.We also believe that sharing best practices amongst revenue authorities should be a clear BRITACOM initiative consistent with its aims and objectives.

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.

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.

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.

Dealing with the COVID-19 Pandemic:Economic Recovery Through Taxation in Africa

COVID-19 negatively impacted the economies of many African countries that had previously been on a positive trajectory.Both economic growth and revenue collections were severely eroded,triggered by the lockdowns implemented,stimu-lus packages offered to small and medium enterprises,financial support to vulnera-ble households,and the tax relief measures to businesses.ATAF administered three surveys on its member tax administrations to gauge the tax administration and pol-icy responses to COVID-19,assess the customs revenue losses,and evaluate the tax administrations’preparedness on business continuity and risk management.Results showed that tax administrations implemented a variety of tax relief measures which included accelerated refunds,tax deferrals,suspension of audits,suspension of duties on health products imported for fighting COVID-19 and tax amnesty programs.Some of the non-tax measures included measures meant for enhancing business cash flow,enhancing business con-tinuity,enhancing household cash-flow and supporting the informal sector and small businesses.Customs revenue was negatively impacted on,with an estimated loss of USD400 million~USD500 million from February to April 2020,for the 18 countries whose data was available.Additionally,some African tax administrations either did not have,or were not implementing Business Conti-nuity Plans(BCPs)and enterprise risk management.Sectors that benefitted from the pandemic include the health,pharmaceuticals and medical supplies,and telecommunication and informa-tion technology.The hardest hit sectors were the tourism,education,accommodation and food services and mining.Some countries realised positive revenue growth,despite the pandemic,due to increased usage of automated tax systems.To recover from negative effects of COVID-19,tax administrations should embark on reforms geared towards implementation of the following measures:taxation of digital economies through digital services taxes and a comprehensive VAT strategy for e-commerce transactions;combating transfer pricing and other forms of illicit financial flows;reducing the informal sector;and streamlining tax incentives.Tax administrations could also embrace digitalisation and leverage on big data considering the Fourth Industrial Revolution.

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.

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.

Major Changes in Tax System and Administration on Cross-border Trade and Investment in Myanmar

This article presents the efforts of Myanmar Internal Revenue Department to change the tax system from an office assessment system(OAS)to a self-assessment system(SAS)to achieve a fair and efficient tax system and to improve taxpayers’compliance through the impact of tax reform on cross-border trade and investment.

Tax Incentives:Tax Revenue versus GDP in Malaysia

Malaysia has a set of"blessed advantages"over other members of ASEAN in terms of fiscal incentives,environmental perspectives and established infrastructures.MNEs are welcome to invest in Malaysia as they could generate substantial income at the expense of significant tax benefits,compared with local companies.The proceeds of business can be diversified into venture capitals and private equities,earning sustainable investment returns and large capital gains upon realisation.Despite tax forgone,Malaysia continues furthering tax incentives to attract FDI.

Tax Policies Supporting Growth and Sustainable and Equitable Development in Post-COVID Economic Recovery Period

As the pandemic begins to ease in some places,the support made available to individuals and businesses should be gradually phased out and replaced by spending to encourage economic growth and employment.While businesses and individuals are recovering from the problems caused by the pandemic,revenue from corporate and individual income taxes may be reduced.Additional tax revenues can however be gained from improved taxation of the digital economy and the opportunities to identify undisclosed income sources arising from agreements for the exchange of tax information.Jurisdictions must modernise tax administration to improve taxpayer compliance and reduce the size of the informal and shadow economies.Modernisation and digitalisation of tax administration can significantly improve tax collection.Using the dialogue process under BRITACOM,the BRI jurisdictions can benefit from the experience of other developing jurisdictions and receive technical support to improve tax administration and collection.Tax incentives could be used to encourage businesses to invest in the digital and green energy sectors.These incentives should be specifically framed and targeted to achieve the maximum effect and monitored to ensure that they continue to achieve the required goals.