The OECD’s Tax Administration 2022 report sets out the latest developments and global trends in tax administrations from 58 advanced and emerging economies. This latest report reveals a shift towards the digitalisation of tax administrations, accelerated by the covid-19 pandemic, with some 1.3bn online interactions between tax administrations and taxpayers in 2020, up 27% over the previous year.
Commenting on the increased use of digital tools and automation by tax administrations, Alex Baulf, senior director of indirect tax at Avalara, said: ‘A prime example is the adoption of electronic invoicing, which allows for the automatic transfer of invoice data between firms and the tax authority. Tax authorities have been investing in the infrastructure behind the scenes to not only receive and process large datasets, but to interrogate and interpret them, with the ability to run enhanced analytics, exemption reporting and even use AI to detect fraud, discrepancies, or errors.
‘By replacing more cumbersome paper-based processes and manual audits and requests for data, e-invoicing and digital reporting promises multiple benefits for businesses and the tax authorities, such as lower administrative and compliance costs, better billing and payment systems integration, as well as more accurate and secure data’.
The OECD’s Tax Administration 2022 report sets out the latest developments and global trends in tax administrations from 58 advanced and emerging economies. This latest report reveals a shift towards the digitalisation of tax administrations, accelerated by the covid-19 pandemic, with some 1.3bn online interactions between tax administrations and taxpayers in 2020, up 27% over the previous year.
Commenting on the increased use of digital tools and automation by tax administrations, Alex Baulf, senior director of indirect tax at Avalara, said: ‘A prime example is the adoption of electronic invoicing, which allows for the automatic transfer of invoice data between firms and the tax authority. Tax authorities have been investing in the infrastructure behind the scenes to not only receive and process large datasets, but to interrogate and interpret them, with the ability to run enhanced analytics, exemption reporting and even use AI to detect fraud, discrepancies, or errors.
‘By replacing more cumbersome paper-based processes and manual audits and requests for data, e-invoicing and digital reporting promises multiple benefits for businesses and the tax authorities, such as lower administrative and compliance costs, better billing and payment systems integration, as well as more accurate and secure data’.
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