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Tax Revenue Suite (TRS) integrates with the core tax administration information sys-tem (CTAIS), finds, and eliminates tax gaps, increases government revenue, and re-duces operational costs. TRS supports electronic tax invoicing (e-Invoicing) and digital tax administration for business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C) taxpayer segments, as well as digital desk audits, digital return-free regimes, digital excise tax administration, and tax information exchange with banks, online platforms, and local authorities.
The article provides a comprehensive overview of P2P payments and tax authority concerns. It delves into the potential impact on tax revenue and political risks, offering practical ideas for tax administration. The suggestions include leveraging banking systems for P2P payments, engaging mobile operators, and motivating legalization. Furthermore, it stresses the importance of accessing electronic payment data and shifting from punitive measures to informational strategies.
We are excited to announce the launch of the much-anticipated 4th edition of "Digital Tax Administration. Collection of Articles" by Anatoly Gaverdovskiy, Chairperson & Founder of Digital Tax Technologies, along with contributions from other DTT experts. This edition enriches the discourse on the digital transformation of tax administration, focusing on innovations and strategies for effectively managing the value-added tax (VAT). In this latest release, we present 18 new articles delving into pivotal facets of digital tax administration.
What should the government do when there are signs of corruption within and around the tax administration? Show zero tolerance for corruption, identify, and punish both tax authority employees and taxpayers who engage in criminal activities with them. However, the forbidden fruit is so tempting that corruption cannot be stopped solely through such methods. Other approaches can help.
This article describes the goals, capabilities, and options for the implementation of financial modules that work with cash registers. Fiscal modules aim to enhance tax compliance, increase efficiency in tax administration, and ensure transparency and accountability in retail business practices. They can be implemented as hardware or software modules. Hardware modules are physical devices integrated or connected to cash registers, while software modules run on various devices. Software modules offer advantages such as flexibility, cost effectiveness, and scalability, but they also have limitations in offline operation and vulnerability to cyberattacks. DTT's software fiscal module supports fiscal data processing, storage, network interaction, and cryptography. It emphasizes the module's password protected asymmetric encryption for key protection.
Cross-border challenges have emerged for tax administrations in the tourism and hospitality industry due to the rise of international aggregators like Airbnb.com, Expedia.com, and Booking.com. These aggregators operate as non-resident taxpayers, making it difficult for local authorities to regulate and collect taxes effectively. To address this issue, implementing a systemic solution becomes crucial. Regulations can be established requiring international aggregators to pay taxes on behalf of themselves and property owners, with fiscalization technology facilitating transparency and accurate tax calculation. By streamlining tax administration, ensuring compliance, and establishing a level playing field, these measures can enhance the legality of cross-border rental property services and improve tax collection in the industry.
Over the past 20 years, local e-commerce and trade has grown to an international level. The largest companies headquartered in one country trade in dozens and hundreds of countries and employ two development strategies. The first strategy involves localization, establishing warehouses, developing local logistics, and paying taxes in the country of sale. The second option excludes local presence, with goods being shipped directly to the buyer from international warehouses or supplier warehouses through international delivery services. The tax administration faces the challenge of how to collect taxes from second-type e-commerce companies—non-resident taxpayers of the country.
B2C taxpayers often consciously resist to the implementation of fiscalization, implementation of tax invoices and Online Electronic Cash Registers (OECRs) that transmit real-time data to tax authorities. Cash receipts have value for the state and consumers, but retailers must bear the cost of cash registers and fiscalization. In this article, we discuss how to increase the attractiveness of fiscalization by creating a new value for taxpayers and consumers. Governments should encourage competition in the OECR market, promote software solutions instead of hardware, and permit using of cloud fiscalization solutions to reduce costs. Retailers should also be encouraged to use non-cash payments and electronic receipts. Tax authorities can reduce tax risk scoring for OECRs users, introduce tax preferences, assist taxpayers in managing retail businesses, and create open OECR architecture for retail IT solutions. Additionally, governments can increase the value of fiscal receipts for consumers through the application of state cashback, conditional tax deductions, and lotteries.
The OECD Digital Transformation Maturity Model (DTMM) is a framework developed by the Organisation for Economic Co-operation and Development (OECD) to help governments and tax administrations assess their readiness for digital transformation. The DTMM consists of five stages of maturity that organizations can use to evaluate their digital capabilities, identify areas for improvement, and develop a roadmap for digital transformation. The five stages of maturity are: (1) Basic, (2) Intermediate, (3) Advanced, (4) Innovative, and (5) Leading. Each stage represents a higher level of digital maturity, with organizations at the Leading stage having fully embraced digital transformation and integrated it into all aspects of their operations.
In the earlier article, we asked three generative AI engines: what are the key terms and topics of tax and digital tax administration? Next, we asked ChatGPT to explain those terms to a 5-year-old kids.
In this article, we look at the findings of an experiment in which three distinct AI tools (Bing AI, Perplexity, and ChatGPT) were asked to identify the main terms and subjects in the "tax administration" and "digital tax administration" disciplines. All responses are displayed exactly as they were given, with no rewriting and only minor formatting changes. While each tool has merits and shortcomings, combining them can help to narrow the search and speed up research in complicated knowledge fields.
Tax monitoring is the process of continuously monitoring and evaluating tax-related operations in order to maintain compliance with tax legislation and to identify any concerns early on. As tax authorities throughout the world speed up their efforts to combat tax evasion and fraud, this process is becoming increasingly vital for businesses of all kinds. Installing a tax monitoring system can provide numerous benefits to firms, including lower penalties and fines, enhanced tax reporting accuracy, and increased transparency. In this post, we will go through the advantages of tax monitoring in greater depth, as well as analyze alternative approaches for creating a centralized tax monitoring system.
Tax authorities around the world have been adopting electronic systems for various tax-related activities, such as filing tax returns and making tax payments. One such activity that is increasingly being digitized is the process of requesting documents from taxpayers. Instead of traditional paper-based requests, tax authorities are now allowing taxpayers to submit electronic copies of documents through their online portals. This shift towards electronic document requesting has many benefits for both taxpayers and tax authorities, including increased efficiency, improved accuracy, and reduced costs. In this article, we will explore the details of taxpayer's electronic document requesting by tax authorities, including its benefits and implementation methods.
Information exchange and communication have become critical for organizations and governments to operate smoothly in the digital age. Tax administrations require reliable and secure means for information exchange between tax officials and banks. This is critical for tax collection, combatting financial crime, and guaranteeing regulatory compliance. In this article, we will highlight the significance of an information architecture that allows tax authorities and banks to connect seamlessly. We will look at the obstacles that all sides encounter, as well as potential ways to increase the efficiency and effectiveness of this crucial process.
The agent-based retail trade, which involves intermediaries or agents who facilitate the sale of goods between buyers and sellers, has become increasingly popular in recent years. However, this type of trade presents unique challenges for tax administration, as multiple parties may be involved in a single transaction. In this article, we will explore the tax administration of the agent-based retail trade, including the role of agents, the tax implications of their services, and the challenges faced by tax authorities. We will also examine the strategies that can be employed to ensure compliance with tax regulations and promote a fair and transparent marketplace.
As online marketplaces continue to gain popularity and become a dominant force in the global economy, tax authorities around the world are struggling with the effective taxation of the transactions that take place on these platforms. The international nature of online marketplaces, with their individual sellers spread across the globe, makes it difficult for tax authorities to monitor and collect the appropriate amount of taxes. To address this challenge, governments are increasingly turning to online marketplaces to take on a greater role in tax collection and administration. In this article, we will look at the fresh approach to online marketplace tax administration, including the obstacles for tax authorities and three approaches for ensuring tax compliance.
The rapid growth of online marketplaces has created a new entity for tax administration, as transactions take place across borders and jurisdictions. Unlike traditional brick-and-mortar stores, online marketplaces often involve multiple sellers and buyers, making it challenging for tax authorities to ensure compliance and collect revenue. In this article, we will explore the unique tax administration challenges posed by online marketplaces, including the issues of jurisdiction, tax evasion, and the need for cooperation between tax authorities and online platforms.
Tax administration promotes taxpayer compliance as well as effective and equitable revenue collection. Tax administration costs are the expenses incurred by taxpayers in order to comply with tax laws. Time and resources spent on record keeping, tax preparation, and tax risk management can all be included in these expenditures. In this article, we will look at the many forms of taxpayer costs associated with tax administration, as well as the factors that contribute to these costs. We will also examine techniques that tax authorities can employ to reduce taxpayer losses. Knowing taxpayers' costs of tax compliance can assist improve the efficacy of tax policy and reduce taxpayers' unproductive spending.
Traditional marketplaces are causing problems for tax and other government authorities. On the one hand, they facilitate unregulated trade. They also allow manufacturers to sell directly to consumers and purchasers to obtain low-cost goods. As a result, marketplaces serve a vital social function. The purpose of marketplace tax administration is to avoid the hazards of the expansion of the shadow economy while keeping the social advantages of their operation. In this article, we will look at the new approach to conventional marketplace tax administration, including the obstacles for tax authorities and three approaches for ensuring tax compliance.
In earlier articles, we explored how important financial data is for tax administration and how banks oppose giving this information on a regular basis. When we look at worldwide tax systems, we can observe that just a few countries have surmounted this barrier. So, what can the tax officials do? In this article, we will look at ways to create incentives for taxpayers to voluntarily give financial data to tax authorities.
Digital Tax