The tax administration horizon

Last year I looked at how technology is transforming tax planning and compliance (‘Tax and technology: horizon scanning’ Tax Journal 23 July 2021). This article looks at how the digital interface between taxpayer and tax authority is changing.

Why digital?

All tax authorities face a common challenge: how to do more with less. Digitalisation is a key tool. Over the past two decades the UK has transformed tax compliance from a system based on paper returns to one based on digital returns. HMRC has also made use of technology to target enquiries for example through its Connect system which compares data from various sources with income declared on tax returns. And if what is happening in other jurisdictions is any guide the pace of digital transformation will continue...