The Role of Digital Transformation in Reducing Tax Avoidance in Light of Political Matters “A Field Study”

Abstract

The main objective of this research is to study the role of digital transformation in reducing tax avoidance, in light of political links and ensuring a more transparent tax environment, ultimately leading to an increase in tax revenue to achieve Egypt’s Vision 2030. The research was based on a field study, and data was collected through survey questionnaires. The research sample consisted of (100) individuals employed by the Egyptian Tax Authority. The researchers concluded that digital transformation provides the necessary electronic models and documents in all electronic tax accounting procedures, and also provides an intelligent electronic system that matches taxpayers’ declarations with e-invoices, thereby facilitating the detection of the largest possible number of tax avoidance cases, especially abusive tax avoidance, which is similar to tax avoidance. The results indicate a significant relationship between digital transformation and tax avoidance in the context of political links. The researchers also explained that it is necessary to take advantage of digital transformation through electronic tax accounting procedures to reform and improve the Egyptian tax system, reduce tax avoidance, and benefit from the positive aspects of political links, increase tax revenue for the state, and build an integrated and effective tax system. Keywords: Digital transformation, Political connections, Tax avoidance