Authors: Temidayo Akindahunsi
Abstract: Despite numerous reforms by tax authorities, the persistent challenge of low tax compliance and administrative inefficiencies continues to undermine effective revenue generation globally. This study examines the effect of digital transformation tools on tax compliance rates and operational efficiency, drawing insights from HMRC in the United Kingdom and global tax authorities. Using a survey research design with data from 91 respondents actively engaged in the tax system, the study employed descriptive statistics and regression analysis to test specific relationships between digital transformation components and compliance outcomes. Findings reveal that taxpayers perceive digital tax platforms as user-friendly, transparent, and cost-effective in reducing administrative burdens. The regression models demonstrate that AI-based compliance checks and digital payment platforms significantly enhance compliance rates and improve operational efficiency, while online filing systems show limited direct impact. These outcomes highlight the transformative role of advanced digital technologies in strengthening tax systems.
DOI: https://doi.org/10.5281/zenodo.17907189
