Despite the challenges of digital transformation, the benefits in terms of taxpayer compliance and reduced costs are considerable, according to the Organisation for Economic Co-operation and Development (OECD) in its report on tax administration, published on Wednesday 27 September. It highlights the significant progress that tax administrations have made in delivering these benefits.
Tax returns, online payments and partial or total pre-filling of tax returns are now commonplace: over 85% of private individuals and 95% of businesses file their returns electronically.
More than 60% of administrations offer virtual or digital assistants to help answer taxpayer queries and support self-service, almost 30% more than in 2018. This helps taxpayers understand their obligations and how to meet them.
The system of withholding tax and employer declarations for employees has helped to maximise compliance with the rules for this important part of the tax base. The increasing availability and sharing of data means that these approaches can be extended to other sources of income and other categories of taxpayer, including the pre-filing of corporate income tax and value added tax returns, in some cases.
Read the report: https://aeur.eu/f/8rh (Original version in French by Anne Damiani)