FUTURE SCENARIOS FOR TAX ADMINISTRATIONS

Abstract

In recent years, the digitalization of tax administrations has accelerated with the effect of the Covid 19 pandemic. Many of the countries have started the online declaration process and have made the use of electronic invoices widespread. Some of the countries have implemented digital technologies such as big data, blockchain, the internet of things, cloud computing, chatbot artificial intelligence tools in their tax administrations. However, not all tax administrations have the same degree of digitization.

Today, the management models used by tax administrations have structural limitations on issues such as fiscal violations, tax compliance, and management costs. Due to the increasing digitalization of society and economy, a suitable tax administration model design has been put forward with the Tax Administration 3.0 model. This model, put forward by the OECD Tax Administration Forum, is thought to avoid these limitations. Different tax authorities and tax experts around the world have also put forward different theses regarding the future tax administration model.

In our world where the use of artificial intelligence is increasing, tax administrations need to change their tax management models. The fact that tax administrations aim to achieve their goals regarding where and how they can go will enable them to make better decisions in digitalization processes. In the study, the scenarios discussed for the future of tax administrations will be evaluated.