The OECD published a report entitled “Technologies for Better Tax Administration: A Practical Guide for Revenue Bodies” during the meeting of the Forum on Tax Administration on 9 to 11 May 2016.
Technologies such as the internet, portal solutions, social media, mobile platforms, cloud computing and big data are providing new opportunities for tax administration, taxpayer support and greater taxpayer participation. The report looks at big data management and smart portal solutions. These technologies permit revenue bodies to implement new ways of providing services and managing compliance risk while facilitating tax compliance for taxpayers.
Revenue bodies need to consider how they can use technology to respond more quickly to taxpayer expectations of contemporary e-service and digital delivery; become more responsive to rapid change; ensure business architecture can support timely digital delivery, collaborative platforms and simplified integration needs; develop expanded service interventions and establish a data-driven and intelligence led culture.
Many administrations are taking a “life events” approach that involves connecting with other government services. This can only be effective if administrations have improved knowledge of taxpayers and can deliver new services using digital technologies. Taxpayer involvement in the design of services is essential to make sure they are effective and to make sure data confidentiality and other issues are considered.
Big data technology allows tax administrations to obtain better value from existing data. In addition to more convenient services for taxpayers the tax administration can provide proactive services; manage tax risks such as avoidance, evasion and fraud; and improve activities such as debt collection.
Instead of capturing and analyzing transactions that have already taken place tax administrations can look at tax assessment in real time. They can look at incorporating features of the tax system into the systems taxpayers use to operate their business. Services can be differentiated on the basis of the inherent risk of the transaction, taxpayer or event.
The report looks at the opportunities for revenue bodies from the use of big data and the new capabilities they will need to become more data driven. Tax administrations are also using advanced analytics to manage taxpayer interactions. They are investing in these technologies to improve tax compliance, reduce the burden on taxpayers, increase taxpayer confidence and improve efficiency and revenue collection.
The OECD report also looks at smart portal solutions and natural systems in tax administration. There are opportunities from integrating big data technology with portal or natural systems platforms. The report looks at the key features of smart portal design that can deliver contemporary services to taxpayer and looks at the collaboration between tax administrations, software developers and businesses to design and deliver services to taxpayers.
The report provides a Digital Maturity Model for big data management and smart portal and natural systems which tax administrations can use to self-assess their current level of digital maturity and areas for improvement.
