Taxation Research Articles

Leveraging Artificial Intelligence for enhanced tax fraud detection in modern fiscal systems

The increasing sophistication of tax evasion schemes poses significant challenges to fiscal authorities worldwide, necessitating advanced technological solutions for fraud detection. This comprehensive review examines the integration of artificial intelligence (AI) technologies in modern tax administration systems, focusing on their application in detecting and preventing tax fraud. The paper analyzes various AI methodologies, including machine learning algorithms, deep learning networks, and natural language processing techniques, evaluating their effectiveness in identifying suspicious patterns and anomalies in tax-related data. Our review encompasses both theoretical frameworks and practical implementations across different jurisdictions, highlighting successful case studies and emerging challenges. The findings indicate that AI-powered systems demonstrate superior accuracy in detecting complex fraud patterns compared to traditional rule-based approaches, with some implementations showing up to 85% improvement in fraud detection rates. However, challenges persist regarding data quality, privacy concerns, and the need for continuous model adaptation to evolving fraud tactics. This review also addresses the regulatory implications and ethical considerations of implementing AI in tax administration, providing recommendations for policymakers and tax authorities to optimize their fraud detection capabilities while maintaining fairness and transparency in their operations.

Conceptual framework for AI-driven tax compliance in fintech ecosystems

This paper comprehensively reviews the integration of Artificial Intelligence (AI) into tax compliance processes within fintech ecosystems. It explores the theoretical foundations of AI technologies, such as machine learning and predictive analytics, and how they can automate tax reporting, auditing, and compliance monitoring. Conceptual models for AI-driven tax compliance are proposed, highlighting the potential for increased efficiency, accuracy, and cost reduction. The paper also examines challenges associated with AI adoption, including algorithmic biases, ethical concerns, data privacy issues, and regulatory hurdles. Strategies for overcoming these challenges and fostering broader adoption are discussed. Finally, the paper offers recommendations for fintech companies and policymakers, emphasizing the need for transparent AI models, bias mitigation, data privacy, and updated regulatory frameworks to ensure fair and effective AI-enabled tax systems.

Transforming Tax Compliance with Machine Learning: Reducing Fraud and Enhancing Revenue Collection

The integration of machine learning (ML) in tax administration has the potential to revolutionize tax compliance, enhancing fraud detection and optimizing revenue collection. This literature review explores the application of ML in tax systems, emphasizing its transformative role in addressing the limitations of traditional, labor-intensive compliance methods. Justification for adopting a literature review approach is rooted in the need to consolidate diverse perspectives, address research gaps, and provide an informed synthesis of existing findings. The study highlights the criteria used for selecting case studies and research papers, ensuring a robust analysis of ML’s ability to automate detection processes, improve risk assessment, and enable predictive analytics for efficient tax administration. Despite its potential, ML adoption is challenged by data quality issues, privacy concerns, technical infrastructure demands, and ethical considerations, which must be systematically addressed. This paper also identifies literature gaps, particularly the lack of balanced discourse, and provides recommendations for overcoming barriers, including enhancing data management practices, adopting ethical frameworks, and fostering cross-border collaboration. By addressing these challenges, ML can equip tax authorities with tools for creating efficient, adaptive, and fair systems. This research underscores ML’s growing importance in transforming global tax compliance, setting the stage for a future of more responsive and effective revenue administration.

The impact of tax burden on welfare attitudes: Micro evidence from welfare states

The attitudes of the general public with regard to social welfare are of crucial importance in determining the efficacy and stability of a nation’s welfare system. The manner in which taxation is employed as a means of funding mechanism for welfare policies is of great consequence. Nevertheless, existing research on the subject of welfare attitudes has largely neglected the tax perspective, underscoring the need for investigations that bridge this gap and provide a more comprehensive understanding of the intertwined dynamics between taxation and public perception of social benefits. This study investigates the influence of tax burdens on attitudes towards welfare using an ordered probit model applied to data from the 2019 International Social Survey Program (ISSP 2019 Social Inequality V), encompassing 11 welfare states. Our key findings are as follows: (1) Empirical analysis reveals that a moderate tax burden correlates with a reduction in public expectations regarding governmental responsibility for welfare provision. (2) Heterogeneity analysis elucidates a negative association between tax burdens and welfare attitudes across diverse welfare regimes. (3) The mediating effect test suggests that perceptions of social fairness partially mediate the relationship between tax burdens and welfare attitudes. (4) The moderating effect test indicates that government efficacy negatively moderates the impact of tax burden on welfare attitudes. This study offers insightful perspectives for policymakers aiming to design and implement tax systems that align effectively with societal structures.

Public Revenues and Educational Sector Productivity in Nigeria

This study examined the influence of public revenue on the productivity of the educational sector, focusing on how various tax policies and expenditures impact education’s contribution to the Gross Domestic Product (GDP), focusing on the role of Company Income Tax (CIT), Education Tax (EDT), Research and Development Investment (R&DI), and Capital Expenditure (CAPEX). Using annual data spanning from 1994 to 2023, the study employs econometric techniques, including the Autoregressive Distributed Lag (ARDL) model, to analyze the relationship between these variables and the education sector’s economic performance. The findings reveal that CIT and EDT positively influence the education sector’s contribution to GDP, suggesting that these forms of taxation play a crucial role in funding educational activities and stimulating economic growth within the sector. Additionally, R&DI and CAPEX exhibit mixed effects on the education sector, with lagged investments showing a more significant impact on economic performance over time. It was recommended that there is a need by policy makers and stake holders for continued efforts to create a conducive fiscal environment for businesses operating in the education sector, including favorable tax policies and incentives to stimulate investment and innovation. Keywords: Nigerian tax system, educational sector, Company Income Tax, Education Tax, Capital Expenditure.

Navigating Unutilized Tax Losses in Singapore, Malaysia and Brunei

Many tax systems allow unutilized tax losses to be carried forward or back to a different tax basis period or transferred to a different entity in a group of companies (known as group relief). Despite sharing a common tax heritage, the tax systems of Singapore, Malaysia and Brunei now treat the shifting of unutilized tax losses quite differently. This article analyses in detail the differences in tax treatment across these jurisdictions, with a focus on how their loss-shifting mechanisms operate and the safeguards implemented to protect the tax base. For example, both Singapore and Malaysia have a “shareholding test”, while Malaysia places considerable restrictions on the claiming of group relief. Notably, Singapore permits the carrying back of losses, but with such restrictive conditions that there might be little practical impact. The article considers how jurisdictions can balance making the tax system attractive to businesses while safeguarding the tax base.

THE KEY DIRECTIONS FOR IMPROVING THE FINANCIAL MANAGEMENT OF THE TAX SYSTEM IN THE REPUBLIC OF ARMENIA

The transition to market relations involves addressing numerous challenges, and resolving these challenges is essential for creating the necessary preconditions for the further development of the market economy in the Republic of Armenia (RA). This includes the implementation of radical transformations in the country's financial, monetary, banking, fiscal, social, structural, and other systems. During the reforms of the financial system in the Republic of Armenia, special attention has been given to the creation and ongoing improvement of an effective tax system. In this regard, the RA State Revenue Committee, as the tax authority, has served as a state government body responsible for tax administration for more than 30 years. Over this period, it has accumulated significant experience and, in line with contemporary developments, has implemented various infrastructures and information systems. According to the author, the financial management of the RA tax system falls within the general theory of management, and the functions of financial management, such as financial planning, analysis, forecasting, and control, are adequately reflected in this context. The article emphasizes the conceptual foundations of program budgeting and accounting, which ensure a practical, close connection between the financial management of the RA tax system and accounting, budgeting, and the financial flows of the tax system and their related transactions. This connection leads to the effective management of the assets and liabilities of the RA tax system.

SUPPORT FOR ATTRACTING INVESTMENTSTO THE DEVELOPMENT OF THE TOURISM SECTOR

The article examines the institutional support for attracting investments to the development of the tourism sector in Ukraine, which serves as a key factor for creating a favorable investment climate and stimulating industry growth. The aim of the research is to analyze, systematize, and summarize the existing institutional foundations for attracting investments, as well as to develop recommendations for overcoming institutional problems in the tourism sector's development. The study presents a system of legal, organizational, economic, and social instruments that create conditions for activating investment activities in the tourism sector. The importance of state support, improving legislation, and developing effective financial mechanisms for attracting investors is substantiated. The research findings indicate that Ukraine has significant potential in the tourism sector due to its natural, cultural, and historical resources. It is revealed that the lack of systematic legislation, inadequate training of personnel, weaknesses in financial mechanisms, and the mismatch of the tax system with industry needs hinder the development of the tourism sector. The study also identified the urgent need for a unified legislative act regulating activities in the tourism sector. Special attention is paid to the role of government organizations that provide informational support and cooperation between the state and business, as well as their participation in developing tourism development strategies. The article presents examples of international cooperation and Ukraine's participation in international organizations' programs that promote foreign investment attraction. The necessity of creating effective financial instruments, including state subsidies and grants, to support new tourism projects is justified. The research emphasizes the importance of implementing tax incentives for enterprises in the tourism sector and developing informational platforms for convenient access to investment opportunities. It is argued that institutional support for attracting investments to the development of the tourism sector in Ukraine is a comprehensive process that requires the systematization of legislation, support for innovative enterprises, modernization of personnel training, and the development of financial mechanisms that will contribute to the sustainable development of tourism infrastructure and the attraction of new investments.

An Investigation Into To The Use Of Artificial Intelligence In The Indian Tax System

Indian taxation is main source of public finance in developing economy. The Indian tax system has long been plagued by issues including tax evasion and ineffective administration. Tax administration systems must constantly be designed to reduce errors and speed up decision-making. The Indian tax system is beset by a shortage of workers to do labor-intensive duties including data input, return inspection, tax audits, etc. The Indian government recently announced the use of artificial intelligence and machine learning in the tax assessment system in order to handle the evolving tax landscape in conjunction with the use of analytics. In the field of taxes, artificial intelligence, or AI, is a relatively recent development.

ANALISIS IMPLEMENTASI KEBIJAKAN ELECTRONIC FILING SYSTEM PAJAK ORANG PRIBADI APARATUR SIPIL NEGARA PADA DINAS PEKERJAAN UMUM DAN PENATAAN RUANG KOTA DEPOK

Technology Development plays the role in influencing modernization of tax system one of them is e-Filing System. E-Filing is a tax filing system electronically that facilitates taxpayers in submitting Tax Return anytime and anywhere. The objective of this study is to analyze the implementation of policy on individual tax e-Filing, obstacles encountered and efforts undertaken in coping with such obstacles at the Public Work and Spatial Planning Office of Depok. This study used qualitative descriptive research method. Result of this study identified that the implementation of e-Filing has been good enough. Some obstacles which can be overcome with efforts carried out from the implementor and taxpayer.

UN Tax Pillars to Address Capital Concentration (through Inheritance Levies) and Wealth Flight (through Exit Taxes) – Implications for the European Union

The article investigates the rising concentration of capital ownership, drawing evidence from the United States, Germany and other European states, and its impact on widening wealth inequality. It warns of modern economies morphing into an “inheritocracy”, where corporate equity and financial assets concentrate across generations. The analysis sheds light on the limitations of income tax systems in addressing wealth inequality in the context of high capital mobility. To tackle these challenges and building on the OECD’s experience with a global minimum tax for large corporations, the article advocates for a UN-led multilateral approach supporting Global Minimum Inheritance Taxes and a Global Minimum Exit Tax to prevent a race to the bottom in taxing high-net-worth individuals and deter wealth flight. By coordinating these taxes at a supranational level, the article supports a fairer tax burden distribution and emphasizes the revenue potential of inheritance levies. Additionally, drawing from the US Expatriation Tax, it explores the legal feasibility of the European Union harmonizing an EU-wide exit tax to mitigate capital flight. Ultimately, these measures have the potential to enhance progressivity across tax systems.

Directions for the development of socially oriented taxation of income of Russians

Personal income tax (hereinafter referred to as PIT), in interaction with other instruments, can have a significant impact on the implementation of social goals aimed at improving the quality of life of Russians, reducing poverty, overcoming monetary inequality, and supporting low-income citizens, including families with children. The article is aimed at studying the theoretical and practical aspects of taxation of personal income regulated by Chapter 23 of the Russian Tax Code. It reveals the significant role of the PIT due to its revenue potential for the budget system of the Russian Federation and its regulatory impact on socio-economic processes in conditions of geopolitical tension, describes the current system of tax deductions, the need and directions for its improvement. The methodological basis of the study is founded on the analysis of scientific publications and open data of public authorities posted on their official websites. The analysis has been conducted using comparison methods, systemic logical and semantic analysis, synthesis of theoretical and practical material. The purpose of the study is to propose a gradual improvement of the mechanisms for providing standard and social tax deductions by increasing their sizes, introducing a subsistence minimum as a non-taxable income for all categories of payers, expanding the scope of application with consideration to the results of the ongoing socio-economic policy. The conclusions and generalisations of the study can be used when legislative and executive authorities and the scientific community develop proposals for improving the provisions of Chapter 23 of the Russian Tax Code, which will create a socially oriented domestic tax system.

ANALISIS PENGARUH SISTEM ADMINISTRASI PERPAJAKAN ONLINE, PEMERIKSAAN PAJAK, DAN SANKSI PAJAK TERHADAP KEPATUHAN WAJIB PAJAK BADAN DALAM MEMBAYAR PAJAK DI KPP PRATAMA KOTA PANGKALPINANG

This research uses a quantitative descriptive approach. The population in this study were all Corporate Taxpayers registered at KPP Pratama Pangkalpinang City, while the sample in this study was 84 Corporate Taxpayers registered at KPP Pratama Pangkalpinang City who met the research criteria. The research results show (1) the Online Tax Administration System has a partial effect on Corporate Taxpayer compliance with a significance value of 0.042 < 0.05 and a tcount value of 2.089 > than a ttable value of 1.675. (2) Tax audits have a partial effect on corporate taxpayer compliance with a significance value of 0.020 < 0.05 and a t value of 2.395 > than a t table value of 1.675. (3) Tax Sanctions have no partial effect on Corporate Taxpayer Compliance with a significance value of 0.067 > 0.05 and a tcount value of 1.869 > a ttable value of 1.675. (4) The online Tax Administration System, Tax Audits and Tax Sanctions simultaneously influence Corporate Taxpayer Compliance with a significance value of 0.001 < 0.05 and a fcount value of 31.586 > than a ftable value of 2.790

Effectiveness of Implementing Single Identity Number (SIN) Through NIK Becomes NPWP for Tax Compliance

The inadequate and ineffective tax administration system in Indonesia has a negative impact on taxpayer compliance in carrying out their tax obligations, such as the tax reporting process is often complicated and time-consuming, thus burdening taxpayers, especially those who run small or medium businesses. The implementation of the Single Identity Number (SIN) through the Population Identification Number (NIK) to the Taxpayer Identification Number (NPWP) in Indonesia starting on January 1, 2024, is a major step in efforts to improve tax compliance. This study was conducted to evaluate the impact of the implementation of SIN through NIK to NPWP on tax compliance as tax administration in Indonesia. This study uses a literature study approach which is a combination of previous research by collecting data from various sources such as scientific journals, news articles, and government regulations which will then find enormous potential in expanding the tax base in increasing taxpayer compliance to carry out tax obligations through the SIN system. The results obtained from this study indicate that the implementation of SIN through NIK to NPWP has a positive impact on increasing tax compliance in Indonesia, such as more effective and easier tax administration with the simplification of tax administration and increased tax revenue. However, despite having various positive impacts, there are several challenges that need to be considered to maximize the effectiveness of the integration, such as the need for socialization and education to the community throughout Indonesia, the need for readiness in terms of information technology infrastructure to support the integration in a sustainable manner, and the need for certainty of good protection of taxpayers' personal data. So, it can be concluded that implementing the integration of NIK and NPWP through the SIN system can have impressive results in improving tax compliance in Indonesia.

Tax System Optimization: A Comparative Analysis Between Personal Income Tax and Corporate Income Tax in Indonesia

This study adopts a qualitative approach to analyze the comparison between Personal Income Tax (PPh) and Corporate Income Tax (PPh Corporate) in Indonesia. Through literature studies and observations, this study explores the tariff structure, tax relief, and tax compliance level of the two tax systems. The economic implications of the implementation of Income Tax and Corporate Income Tax on economic growth, investment, and income distribution were also discussed. The findings show that tax reform, as stated in the Law on Harmonization of Tax Regulations (UU HPP), has a significant impact in improving the effectiveness and fairness of the tax system. The results of this study provide in-depth insights into the importance of appropriate tax policies to support inclusive and sustainable economic growth in Indonesia.

Examining the critical success factors influencing the diffusion of AI in tax administration in Botswana

Examining the critical success factors influencing the diffusion of AI in tax administration in Botswana

Regulatory changes and their Impact on Tax compliance: An overview of Finance Act 2023

The aim of this study is to evaluate and review the regulatory changes and their impact on tax compliance, it is an anthology of the existing literature on finance Act and tax compliance with a view to identifying the gaps to which future literature may be directed within the Nigerian context. The paper discusses the concept of finance Act and its surrounding issues on tax compliance as appraised by different authors. The data used for the study were mainly secondary data from different sources. The researchers critically review related literatures from various secondary sources with a particular emphasis on Finance Act 2023, as well as other Nigerian tax legislations. The secondary sources were complemented by the personal observation of Nigerian tax system in Nigeria by the researchers. The study revealed mixed findings on the extent to which finance Act and other financial regulations impact on the economy. The study also concludes that, the factors determining financial regulations are not fixed, and vary from one jurisdiction to another. The study therefore recommends that, from the theories that relates to financial regulations, there shall be a unified theory that amalgamates the existing theories; and that which will be amenable to the ever-changing reporting environment.

Taxation of foreign trusts in Greece /Tax incentives for the transfer of residence of individuals to Greece

Abstract The present overview provides a summary of the Greek tax regime applicable to foreign trusts. Up until 2017, the taxation of foreign trusts was largely left unregulated in the Greek tax system, which can be attributed to the fact that trusts, being a common-law concept, are not recognized by Greek legislation. Despite the uncertainties, foreign trusts were often used as structures for wealth management or estate planning. The guidelines provided in 2017 were thus eagerly awaited to provide clarity on a matter that was left unregulated for decades and can therefore only be considered as a very positive development. Nevertheless, certain aspects raise concern. This overview also summarizes the Greek Tax Incentive Regimes, which have been met with great demand from foreign residents seeking to transfer their (tax) residence to Greece.

Recuperation mechanism of direct taxation to control post covid economic contraction: India’s new tax reform with crypto tax

This study explores the impact of the progressive tax structure on income equality, emphasizing the significance of direct taxes in promoting economic and social equality. It also examines the challenges faced by the Indian government in meeting its revenue targets due to the decline in corporation tax and personal income tax revenues. The present study assesses the role of the newly implemented tax by the Indian Finance Ministry on capital gains from the sale or purchase of cryptocurrencies and its impact on economic growth. A qualitative approach has been adopted, utilizing secondary information sources for characterization and analysis. The study relies on Time Series Data from the Income Tax Department for the financial years 2000-01 to 2018-19 and global estimates of total tax revenues published by the International Centre for Tax and Development (ICTD). The findings indicate that the substantial decline in direct tax revenues necessitated a search for alternative sources of income. The separate taxation system for cryptocurrencies has legitimized digital assets and enabled the government to monitor transactions and capital gains. The introduction of the "Digital Rupee" aims to enhance the digital economy through efficient currency management. This research highlights the need for policymakers to develop a well-defined regulatory framework for cryptocurrency taxation. Clear regulations on cryptocurrency taxation and the "Digital Rupee" could help India boost its digital economy while ensuring better monitoring of crypto transactions and revenues.

A Health Economics Inquiry into Regulatory Constraints on the European Tobacco Market.

Despite the implementation of significant measures by European countries in recent years, smoking rates in Europe remain persistently high. TheEuropean Commission is currently undertaking a comprehensive review of itstobacco regulations. This article aims to address critical inquiries that arise during the amendment of the regulatory framework. We evaluate the effectiveness of existing tobacco control methods and observe a diminishing impact on promoting smoking cessation. Additionally, we explore how individuals of varying genders respond to the regulatory environment. We propose a comprehensive and evidence-based framework for implementing a taxation system in response to the proliferation of emerging products, including e-cigarettes and heated tobacco. This system is designed to align effectively with health policy objectives, providing a strategic approach to curbing tobacco use and promoting public health.