Use of digital tools set to increase tax compliance

The latest edition of the OECD’s Tax Administration Series shows how jurisdictions are increasingly moving to e-administration and using a range of technology tools data sources and analytics to increase tax compliance.

The report finds there has been a significant shift towards e-administration with increasing options for online filing of tax returns as well as online payments. On average e-filing rates for personal income tax are now above 70% and those for corporate income tax are about 85%. Electronic contact channels – online email digital assistance – continue to increase for example email contacts are up 20%; while traditional channels continue to decrease – in-person contacts are down 15%. More than 40 administrations are using or planning to use artificial intelligence.

In addition many tax administrations now use behavioural insights and analytics to understand better how and why taxpayers act. More than ten administrations are...