We are now living in the era of internet of things (iot) which includes tax settlement system. These days we are all more and more exposed to the world. We are more open and engaged with various systems of the society. There is actually no where to hide. We often forget these consequences of iot. If you feel the increase of the tightness of the tax system, then you probably still think you are living in the past.

Digitalisation could help in this respect if the tax system was internally closed, which is not the case, for example, in the European Union (including with regard to VAT). As long as secret jurisdictions (tax havens) are tolerated, digitalisation will not help much in better taxation of transnational companies. The good old capital controls would certainly help. The tax 'miracle' in Russia after March 2022 (after the introduction of strict capital controls), where tax additions from outside the energy sector rose sharply, provides a good case study of what really works in this regard.

Digitization and internetization of the tax settlement system can enhance the efficiency and accuracy of tax processes, potentially leading to increased tightness in the tax system. Automation and online platforms can help reduce errors, minimize opportunities for evasion, and improve overall transparency. However, the effectiveness depends on the implementation and cybersecurity measures to prevent fraudulent activities

Yes because it increases security, tax filing and tax documents are safe. With digitization andbinternization close monitoring of tax officials are made possible

It is one of the most important ways to increase revenues provided by tax system above all in african developping countries where the corruption reported at highest level.

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Chapter 2. Digitalization and Taxation

Author:

Bas Jacobs

Language: EnglishPrint Publication Date: 01 Nov 2017

[First, digitalization can help relax information constraints through better ways to verify the true economic outcomes of taxpayers. Digitalization makes it easier for governments to link existing information in various parts of the tax system to better detect evasion or avoidance. Digitalization can thus be seen as improving the tax enforcement technology of the government. Better tax enforcement allows governments to raise the same revenue with lower taxes (more efficiency) or to raise more tax revenue with the same taxes.

Second, digitalization can allow governments to implement more sophisticated tax systems. For example, tax liabilities can be conditioned not only on current yearly (labor) income, but also on income earned in different periods, income earned by spouses, asset holdings, and so on. By conditioning tax schedules on more information, government can better target income redistribution. Consequently, the same income redistribution can be achieved with lower tax rates, or the same tax rates can achieve more income redistribution. By using more information in the design of tax systems, digitalization can thus alleviate the equity-efficiency trade-off.

Importantly, however, digitalization can never negate the equity-efficiency trade-off. Important economic behaviors remain the private information of taxpayers and therefore unobservable to tax authorities (such as work effort). This remains so even in a fully digitized world, and even if there were no tax avoidance or evasion. However, by conditioning tax schedules on variables that go beyond current incomes, governments can improve the equity-efficiency trade-off while respecting the fundamental information constraints on the non-verifiability of certain economic behaviors.]

Yes, this will guide against leakage or revenue.