Digital Technology Reshapes the Tax Collection and Administration System: Impacts, Challenges and Future Prospects

Abstract

With the rapid development of digital technologies, their profound impact on the global economy and social structure has become increasingly evident, and the tax collection and administration system is no exception. This paper aims to comprehensively examine how digital technologies reshape the tax collection and administration system, deeply analyze their far-reaching effects on collection efficiency, tax compliance, and tax services, and reveal the challenges encountered in the process as well as potential solutions. Firstly, the paper outlines the basic principles and characteristics of digital technologies such as big data, artificial intelligence, and blockchain, and showcases their widespread applications and achievements in the field of tax collection and administration through domestic and international practical cases. Subsequently, the paper delves into the multidimensional impacts of digital technologies on the tax collection and administration system. On the one hand, they drive innovation in collection models, facilitating the transition from traditional to modern and manual to intelligent approaches. On the other hand, by optimizing data collection, processing, and analysis processes, digital technologies significantly enhance collection efficiency. Additionally, they strengthen the transparency of tax policies and regulatory efforts, thereby promoting taxpayer compliance. Furthermore, the application of digital technologies enriches tax service channels, elevates service quality, and better satisfies taxpayers' diverse and personalized needs. However, the advancement of digital tax collection and administration also confronts numerous challenges, including technical issues such as data security, technical compatibility, and privacy protection; legal and institutional challenges related to adaptability and systemic barriers; as well as societal acceptance challenges concerning cognitive and attitudinal changes among taxpayers and tax officials. In response to these challenges, this paper proposes specific strategies such as strengthening technological innovation, improving laws and regulations, and enhancing social awareness and training, aiming to provide robust support for the sustainable development of digital tax collection and administration. Looking ahead, as big data, artificial intelligence, blockchain, and other technologies continue to mature and expand their applications, the tax collection and administration system will undergo even more profound transformations. The paper predicts the future development trends of these technologies and envisions their enormous potential in enhancing tax collection efficiency, promoting tax fairness and transparency, and strengthening international cooperation and exchanges. Finally, the paper summarizes the research findings, emphasizes the theoretical and practical value of the study, and proposes issues and areas worthy of further exploration in the field of digital tax collection and administration.