Exploring the Adoption of Selected Digital Technologies in Tax Administration: A Cross-Country Perspective
IMF Notes, December 11, 2023
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- Exploring the Adoption of Selected Digital Technologies in Tax Administration: A Cross-Country Perspective
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Bibliographic details
- Authors: Manabu Nose, Andualem Mengistu
- Published: December 11, 2023
- Series: IMF Notes
- DOI: https://doi.org/10.5089/9798400258183.068
Overview
- Authors: Manabu Nose, Andualem Mengistu
- Date: December 11, 2023
- Scope: Uses cross-country data to assess the potential impact of selected digital technologies on tax collection and compliance.
Data and Methodology
- Data sources:
- International Survey on Revenue Administration (multi-dimensional)
- Tax Administration Diagnostic Assessment Tool (TADAT)
- Revenue Administration-Gap Analysis Program (RA-GAP)
- Approach:
- Cross-country statistical analysis to estimate associations between digital tax administration operations and performance outcomes.
- Comparison with single-country micro-economic case studies to validate and complement cross-country findings.
Key Findings
- Digital technologies are associated with enhanced tax collection and improved compliance outcomes.
- Effects vary by the type of specific digital service or tool introduced.
- Realization of revenue gains depends critically on:
- Accompanying policy, legislative, and administrative reforms.
- Availability of adequate digital connectivity.
- Presence of capable tax administration staff.
- Cross-country estimates provide reasonable upper-bound estimates on revenue gains but require careful validation with country-specific case studies.
Policy Implications and Recommendations
- Digital investments should be accompanied by:
- Policy and legislative reforms to enable effective use of digital tools.
- Administrative reforms to integrate digital services into existing tax processes.
- Investments in digital connectivity infrastructure.
- Capacity building for tax administration staff to operate and maintain digital systems.
- Prioritize validation of cross-country estimated gains through detailed country-specific case studies before scaling investments.
Complementary Evidence
- Single-country case studies from selected micro-economic literature:
- Complement the cross-country results.
- Reveal key enabling factors necessary to reap and sustain benefits from new digital investments.
Source: Exploring the Adoption of Selected Digital Technologies in Tax Administration: A Cross-Country Perspective, Manabu Nose and Andualem Mengistu, December 11, 2023. https://www.imf.org/en/publications/imf-notes/issues/2023/12/11/exploring-the-adoption-of-selected-digital-technologies-in-tax-administration-a-cross-541094
Content in this bundle
- Appendix 1. Case Studies