Taxation Research Articles

ҚАЗАҚСТАНДАҒЫ КОРПОРАТИВТІК ТАБЫС САЛЫҒЫННЫҢ ЕРЕКШЕЛІКТЕРІ

The relevance of the article is that today one of the fundamentally important problems is to strengthen the financial system and ensure the entry of the national economy of Kazakhstan into the trajectory of sustainable socio-economic development. The priority issues of modern economic policy are the formation of an effective taxation system in Kazakhstan. It is determined by the fact that tax planning contributes to the optimization of taxes and payments in accordance with the tax code of the Republic of Kazakhstan. Modernization of tax obligations is measures of business entities aimed at reducing taxes and payments, taking into account benefits and provisions in accordance with the tax code of the Republic of Kazakhstan. Tax planning is aimed at solving problems such as increasing income and reducing tax liabilities. It is aimed at optimizing taxes and payments by enterprises, opening accounting documents and tax reports for tax structures. To do this, business entities use tax planning, which provides for tax incentives based on the use of benefits in accordance with tax legislation. In general, modernization is any activity aimed at improving the overall situation. In the tax part, optimization involves a combination of tax indicators and, on their basis, improving the calculation of tax liabilities and snow-year conditions of enterprises. One of the tools for optimizing taxes and payments, as well as tax planning, is the development of a tax accounting policy. The tax policy discloses all the tax features of the company, and also provides for the disclosure of tax documents. The article also outlines the types of tax planning – strategic and tactical characteristics. Strategic tax planning is being developed to modernize long-term taxes and payments. The development of a plan of the current reporting time for specific types of taxes and payments implies a set of measures of tactical tax planning. It was noted that the main goal of tax planning is to improve tax liabilities and increase the efficiency of enterprises.

Review of Factors Affecting Tax Compliance And Tax Ratio Target Achievement

This article provides a comprehensive review of the factors influencing tax compliance and the achievement of targeted tax ratios, employing literature review and qualitative analysis approaches. The primary objective is to identify and analyze the determinants that affect taxpayers' compliance behavior and how these factors contribute to meeting the desired tax ratio targets set by governments. Tax compliance is crucial for ensuring sufficient public revenue, which supports economic development and public services. Achieving targeted tax ratios is essential for maintaining fiscal stability and promoting equitable economic growth. The study explores various factors, including economic, psychological, and institutional elements, that impact tax compliance. Economic factors such as income levels, tax rates, and perceived fairness of the tax system are examined alongside psychological factors such as taxpayer attitudes, trust in government, and perceived benefits of public spending. Institutional factors, including the efficiency of tax administration and the legal framework, are also considered. By synthesizing findings from existing literature, this article highlights the complex interplay of these factors and suggests strategies for policymakers to enhance tax compliance and achieve targeted tax ratios. The findings underscore the importance of a multifaceted approach that considers both taxpayer behavior and systemic reforms to improve tax systems' effectiveness.

Faktor Kunci Kepatuhan Pajak UMKM E-Commerce di DKI Jakarta : Modernisasi Sistem Pajak, Religiusitas, Love of Money, dan Sanksi Pajak

Purpose: The purpose of this study is to examine how Religiosity, love of money, tax sanctions, and modernization of the tax system affect tax compliance of MSME businesses. Methodology: The sampling method is based on the formula of Roscoe's theory. Using the SmartPLS 4.0 program for PLS-SEM data analysis, the researcher tested the hypothesis at a significance level of 5%. Results: the results of the study, taxpayer compliance in e-commerce is significantly influenced by the modernization of the tax system for MSMEs; taxpayer compliance in is not significantly influenced by religiosity for the same business; and e-commerce is significantly influenced by love of money. In terms of MSME e-commerce tax compliance, tax sanctions do not have a significant effect. Limitations: This study may only cover a small portion of e-commerce MSMEs in DKI Jakarta, so the results may not fully represent the entire population of e-commerce MSMEs in the area if the sample used is not taken randomly or there is a tendency to select certain respondents, then the results of the study can be influenced by sample selection bias. Contribution: This study adds to the existing literature on tax compliance, particularly in the context of MSMEs in the e-commerce sector. It provides new insights into how factors such as tax system modernization, religiosity, love of money, and tax sanctions interact to influence tax compliance. By testing a theoretical model involving various factors influencing tax compliance, this study strengthens or challenges existing theories related to tax compliance behavior, particularly in the context of the digital economy

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

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.

Pendampingan Pelayanan Pemadanan NIK NPWP pada Kantor Pelayanan Pajak Pratama (KPP) Sidoarjo Barat

Data matching of Population Identification Number (NIK) as Taxpayer Identification Number (NPWP) needs to be done. This is an order from Law (UU) Number 7 of 2021, Presidential Regulation Number 83 of 2021, and Regulation of the Minister of Finance Number 112/PMK.03/2022. Regarding the implementation of data matching of NIK to NPWP which must be accelerated. The Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) has set the time for matching NIK to NPWP to be fully implemented in mid-2024. Tax Volunteers support Taxpayers (WP) in matching Population Identity Number (NIK) and Taxpayer Identification Number (NPWP). Matching NIK NPWP functions as part of the steps to improve tax compliance and administration in Indonesia. The purpose of this comparison is to inform the truth and reliability of personal data and tax information of Indonesian citizens.

The Gig Economy: Challenges for Tax System

Tax system in this modern day is inherently complex and dynamic in nature coupled with the fact that it is being influenced by a variety of factor. The main objective of this study is to evaluate tax compliance in the gig economy: the need for transparency and accountability. Using the Saunders’ Research Onion layers, the study employed the use of quantitative data and qualitative data. Structured questionnaire and interview were used as data instrument. Data collated werecoded and then subjected to analysis.Theresultof the findingsshows that 66.6 % of the respondentsstronglyagreedto tax compliance. The findings of the study also shows that 33.3% strongly agreed, agreed, disagreed and strongly disagreed that tax system does not take gig economy inti consideration while designing it. Theresultalsoshows that challengesbeing faced by gig workers in reluctanceto tax paymentincludepoor communication from tax authority, platform not doing enough and social norms. Conclusively, tax systems did not put gig economy into consideration when been designed.

A regulatory model for harmonizing tax collection across Nigerian states: The role of the joint tax board

Nigeria's decentralized tax system presents significant challenges to efficient tax administration, with disparities across states leading to issues such as double taxation, revenue leakage, and non-compliance. The need for a harmonized tax system has become more critical as the country seeks to improve its revenue generation and create a more conducive environment for businesses. This paper examines the role of the Joint Tax Board (JTB) in creating a regulatory model that harmonizes tax collection across Nigerian states. The study outlines the complexities of the current tax structure, highlighting the fragmentation between federal and state tax authorities. It also explores the successes and limitations of the JTB in coordinating tax policies, particularly with regard to the Personal Income Tax. Drawing on international examples of successful tax harmonization, the paper proposes a hybrid regulatory model that balances state autonomy with centralized coordination. Key principles for the proposed model include the standardization of tax policies, strengthening of enforcement mechanisms, and the adoption of modern technology to streamline tax administration. Furthermore, the paper discusses the challenges of implementing a harmonized tax system, such as political resistance from states, disparities in technological capacity, and weak enforcement mechanisms. Recommendations include legislative reforms to strengthen the powers of the JTB, capacity building for state tax authorities, and increased collaboration between federal and state governments. In conclusion, this study emphasizes the pivotal role of the JTB in driving tax harmonization and highlights the need for a unified tax system to promote economic growth and improve compliance in Nigeria. Keywords: Regulatory Model, Harmonizing, Tax Collection, Nigerian States, Role, Joint Tax Board.

A model for VAT standardization in Nigeria: Enhancing collection and compliance

This paper explores a proposed model for the standardization of Value-Added Tax (VAT) in Nigeria, aiming to enhance both collection efficiency and compliance. VAT is a significant revenue source for Nigeria; however, inefficiencies in its collection and compliance present challenges to economic development. The study addresses these issues by proposing a comprehensive model that integrates global best practices with local context. The proposed model includes the uniform application of VAT rates across sectors, standardized invoicing and documentation procedures, and the adoption of advanced technological solutions for VAT monitoring and reporting. By standardizing VAT procedures and leveraging technology, the model seeks to reduce discrepancies and errors, streamline compliance, and enhance transparency. The methodology involves a thorough review of existing literature, comparative analysis of VAT systems in other countries, and case studies of past VAT standardization attempts in Nigeria. The study uses qualitative and quantitative data to evaluate the effectiveness of the proposed model and its potential impact on VAT collection and compliance. The findings indicate that implementing the model could significantly improve VAT collection efficiency and compliance rates, contributing to a more robust and transparent tax system. The paper concludes with recommendations for policymakers on adopting and refining the proposed model, along with suggestions for further research to address ongoing challenges in VAT administration. Keywords: Model, VAT, Standardization, Nigeria, Enhancing Collection, Compliance.

Fighting Inequality Through a Progressive Tax System for a Just Future in Tanzania

The problem of inequality is one of the economic problems that developing countries still face including Tanzania. This research therefore focuses on presenting the status and trends of inequality and the progressive tax system to pay for a just future in Tanzania. Research was anchored on the Ability-to-Pay Principle. The study was typically a desk research whereby it dwelled on analyzing and synthesizing large amounts of complex secondary data/information and literature concerning the issue of inequality in Tanzania. The target population for this study consists of secondary data sources, which included Peer-reviewed journal articles on taxation and inequality Government reports and taxation data from the Tanzania Revenue Authority (TRA). A purposive sampling methodology was employed to choose relevant studies and reports. This approach ascertained that only sources directly related to the research goals were included. The sample consisted of 20 sources, selected based on criteria such as: Year of publication. Content analysis was adopted in analyzing data to discover themes, patterns and trends related to progressive tax systems, income inequality reduction, and wealth distribution. Key variables such as tax policies, inequality measures (Gini coefficient), and wealth distribution patterns were extracted and analyzed to determine the effectiveness of progressive taxation in Tanzania. Findings revealed that while progressive taxes can be a remedy, the presence of large informal sectors, as in Tanzania, hinder their reach. Thus, while Tanzania’s progressive tax structure holds potential, more reforms are in need to boost implementation alongside widening the tax base. Further, the study concluded that there is little wealth-related taxation in Tanzania. Also, assets such as land ownership or financial assets are hardly/not taxed. The study recommended that given the situation, there is a great need to improve the tax collection with a focus on the existing tax base in Tanzania.

Moderating Role of Social Value Orientation on the Relationship between Tax Service Quality and Tax Compliance among Small and Medium Enterprises (SMEs) in the North Rift Economic Bloc, Kenya

Tax revenues are crucial for government operations, providing essential economic, social, and political benefits. However, tax noncompliance by individuals and businesses can undermine these benefits by reducing government revenue and compromising the tax system’s fairness and effectiveness. As such, improving taxpayer compliance is a key government priority. This study examines the conditional effect of social value orientation on the relationship between tax service quality and tax compliance among small and medium enterprises (SMEs) in Kenya. Guided by a positivist philosophy and explanatory design, the study sampled 393 SMEs owners/managers from a population of 21,232 through stratified sampling. The data were collected using self-administered questionnaires, with reliability and validity confirmed using Cronbach’s alpha and factor analysis. The analysis employed descriptive and inferential statistics and multiple regression analyses using the Andrew Hayes Process macro. Findings indicated that both tax service quality (β =.541, p<0.01) and social value orientation (β = 0.333, p < 0.01) significantly and positively affect tax compliance. Additionally, social value orientation significantly moderates the relationship between tax service quality and tax compliance (β = 0.5059, p < 0.01, R2 = 0.0774). The study concludes that high-quality tax service and consideration for social values of the taxpayer are crucial for improving the compliance level of SMEs. Governments encourage greater compliance by providing efficient, user-friendly, and transparent services, as well as through the inclusion of social values in policy and program design. Future research should explore other factors influencing compliance through a mixed-method approach.

Prospects, Challenges and Implications of Deploying Artificial Intelligence in Tax Administration in Developing Countries

Prospects, Challenges and Implications of Deploying Artificial Intelligence in Tax Administration in Developing Countries

Impact of Tax-based Revenue on Economic Development in Nigeria, 1999 to 2023

This research measures the contributory impact of Tax-based revenue on economic development in Nigeria, 1999 to 2023, with a specific focus on the nuanced dynamics of oil-based tax (OBT), non-oil-based tax (NOBT), and aggregate tax revenue (ATR). Leveraging comprehensive data extracted from the Central Bank of Nigeria's Statistical Bulletin and Federal Inland Revenue Service (FIRS) database, the study employs the Autoregressive Distributed Lag Model (ARDL) with Gross Domestic Product Growth Per Capital (GDPPC) as the outcome variable. The empirical analysis supports a significant and positive impact of non-oil-based tax revenue on GDPG while the oil-based tax shares no significant impact on economic development. Also, aggregate tax revenue (ATR) was found to negatively but significantly impact on economic development. The study recommends the adjustment of the tax system to address the developmental constraint on investment and consumption posed by taxation while optimizing the benefits that accrue from an efficient and good tax system.

ARTIFICIAL INTELLIGENCE, THE RULE OF LAW AND PUBLIC ADMINISTRATION: THE CASE OF TAXATION

Abstract It is now a cliché to highlight that whilst artificial intelligence (AI) provides many opportunities, it also presents myriad risks to established norms. Amongst the norms considered in the literature, the Rule of Law unsurprisingly features. But the analyses of the Rule of Law are narrow. AI has the capacity to augment as well as to undermine fidelity to the ideal of the Rule of Law. Rather than viewing AI only as a threat to important norms, this article’s core argument is that AI should also be presented as an opportunity to meet their demands. It uses the Rule of Law in tax administration to support this argument.

A Comprehensive Benefit Evaluation of the Model of Salt-Tolerant Crops Irrigated by Mariculture Wastewater Based on a Field Plot Experiment

The intensified development of aquaculture and excessive use of agricultural fertilizers pose a threat to natural resource availability and deteriorate the environment. Utilizing aquaculture wastewater from mariculture for agricultural irrigation can mitigate pollution and alleviate the pressure on natural resources. This study investigated the comprehensive benefits of using freshwater and mariculture wastewater for irrigation, employing two concentration levels of mariculture wastewater in a pot experiment with saline-tolerant rice. Furthermore, we quantitively assessed the integrated benefits for farmland by utilizing an ecosystem service function value assessment and emergy value theory. The results indicate a significant enhancement in the growth and yield of saline-tolerant rice when irrigated with mariculture wastewater. Specifically, the theoretical yield increased by 9.01% relative to freshwater irrigation. Irrigation using aquaculture wastewater significantly enhanced the nutrient concentrations in the soil, including soil organic carbon (SOC), avail-K (AK), Olsen-P (OP), and alkali-N (AN). Additionally, the uptake of these nutrients by salt-tolerant crops during their late reproductive stage effectively mitigated the rise in soil salinity induced by the wastewater irrigation practice. Under experimental conditions, wastewater irrigation conferred superior ecological benefits compared with freshwater irrigation. The comprehensive benefits of wastewater irrigation, valued at 104,439.10 RMB/hm2, exceeded those of freshwater irrigation by 188.8%. The utilization of mariculture wastewater effectively enhances the coastal environment, augments crop yields, and diminishes treatment costs. From the perspectives of revenue enhancement, environmental compatibility, and sustainability, the model of utilizing salt-tolerant crops irrigated with mariculture wastewater holds substantial promotional and practical significance.

FISCAL ASPECTS OF ESG BUSINESS DEVELOPMENT CONCEPTS

The subject of the study is the fiscal aspects of the ESG concept of business development. Methodology. The study uses general scientific methods, in particular, theoretical generalisation, methods of analysis and synthesis and statistical analysis, as well as the graphical method to visualise the results of the study. The purpose of the study is to analyse the strategic guidelines of tax policy through the prism of the ESG concept. Conclusion. The fiscal aspects of the ESG concept are an important element in understanding its impact on business. They include various tax incentives and mechanisms that promote the implementation of ESG standards and take into account the consequences of non-compliance for businesses. In particular, fiscal policy includes tax incentives for businesses that invest in green development, support social initiatives or improve corporate governance. In a broad sense, instruments such as environmental taxes are aimed at achieving sustainable growth and economic development. Strategic tax policy guidelines under the ESG approach include encouraging investment in sustainable technologies through tax incentives for companies investing in renewable energy and environmentally friendly projects. Social initiatives are supported through tax rebates for companies that develop programmes to develop local communities and improve working conditions. Corporate governance regulations require companies to report on the environmental, social and governance aspects of their activities. Promoting the circular economy includes tax incentives for companies that implement recycling and waste reduction practices. Support for small and medium-sized businesses includes tax incentives for SMEs that implement ESG standards and easier access to green finance. International cooperation involves bringing tax policy in line with international ESG standards and participating in global tax transparency initiatives. Adaptation to climate change includes the introduction of taxes on greenhouse gas emissions and the transition to low-carbon business models. Green project financing involves the use of tax revenues to support green initiatives. Innovations in tax administration are being introduced through new technologies, and education and training include funding for ESG training programmes. These guidelines will help businesses adapt to new conditions, create sustainable value and meet modern environmental, social and governance requirements.

Postseparation Financial Abuse Perpetrated Through Government Systems: A Survey of Australian Mothers' Experiences of Child Support.

Financial abuse is a form of violence that can extend well beyond intimate partner relationship breakdown. A survey of 540 Australian separated parents examined how financial abuse was perpetrated, with a focus on child support and other government systems. Women reported that their ex-partners minimized and withheld child support payments to inflict direct financial harm, while interactions between the family court, taxation, and benefit payment systems were taken advantage of to threaten or control them. Findings revealed how the mandatory and complex Australian child support system provided perpetrators with a useful means of perpetrating financial abuse across households.

Tax Dispute Analysis of Incorrect Vat Payment on Offshore Royalty Viewed From the Ease of Administration Principle (Case Study of PT X)

The purposes of this research are: (i) to analyse basic considerations from the Indonesian Tax Authority (ITA) in making regulations regarding the incorrect transfer of VAT on taxable services from outside customs territory which cannot be overbooked; and (ii) to analyse whether the administrative sanctions penalized to the taxpayer are appropriate from the ease of tax administration principle’s perspective. This study is using (i) VAT imposition on intangible taxable goods and services from outside the Indonesian customs territory; (ii) Ease of Administrative principles: certainty, efficiency, convenience of payment, and simplicity as theoretical references. The research is categorized as applied study with a qualitative method using qualitative data collection techniques through literatures and field studies (interview with various key informants from ITA, representatives of the taxpayers, and taxation experts and academia. The qualitative analysis on data/information was done via triangulating process with related theories, VAT laws and regulation, as well as expert opinions. Results of the study conclude that the basis of considerations of the ITA makes regulations for the utilization of Intangible Taxable Goods and Taxable Services from Outside the Customs Territory, which cannot be done with overbook because both offshore VAT objects are difficult to detect and can be used for tax avoidance modus by the taxpayers. The ownership of documentary evidence is actually a foreign party while the person who is supposed to make a transfer request is the owner of the document evidence, and the tax that has been deposited has become a tax credit and will not move to another place other than the state treasury because the tax credit is the taxpayer's right. Considerations taken by ITA have not met the theory of good tax administration because there has been no legal formulation related to this matter and ITA's accountability is still considered to be lacking in terms of supervision and control. Administrative sanctions penalized to PT X due to tax deposit errors are not in accordance with the ease of tax administration principle. Even though it is certainly stipulated in the prevailing law and regulation, but the procedure is so lengthy and detrimental to the taxpayer, increase and disrupt cash flow for business activities carried out by PT X. In terms of efficiency principle, the rejection of overbooking process creates additional compliance costs to the taxpayer, namely: fiscal financial cost, time cost and psychological cost and denial the facts that actually the fund/money have been transferred to the State Treasury. Implications of research: To provide examples of practice in the field of how complicated tax administration procedures can cause unnecessary losses for taxpayers if the tax regulations are not made by taking into account the principle of ease of tax administration. It is also recommended that the tax authorities should reduce administrative burden for the implementation of rights and fulfillment of tax obligations that are too rigid to be more friendly in order to make it easier for taxpayers to carry out their tax obligations and make themselves a facilitator for taxpayers to increase cooperative tax compliance. Originality/value: Ease of carrying out tax obligations for taxpayers must be something that is facilitated by the Tax Authority rather than being subject to penalties and this can be done, one way, through the application of the principle of ease tax administration in the formulation of tax regulations.

Enhancing small business success through effective tax management and policy optimization

The examination of fiscal practices and challenges faced by small businesses underscores the pivotal role of effective tax management in their success and growth. Tax deductions, which allow businesses to reduce taxable income by subtracting certain expenses, are essential tools that help alleviate financial pressures. Despite their potential benefits, many small business owners struggle due to insufficient tax planning and the need for meticulous financial record-keeping. The reviewed studies reveal a significant need to optimize tax policies to support small business development. For instance, proposals such as the Standard Business Deduction (SBD) aim to simplify the tax process by providing a fixed amount that can be claimed above the line, reducing the need for detailed expense tracking and potentially lowering compliance and enforcement costs. Additionally, recommendations for improving accounting practices highlight the importance of simplifying and standardizing accounting requirements to meet informational needs and enhance efficiency. Further research indicates that tailoring tax policies to specific sectors, such as agriculture, can address the unique challenges faced by small businesses in these areas. Effective tax planning and a well-organized accounting system are crucial for maximizing tax benefits and enabling productive investment in business growth. Overall, the intersection of business structure, tax systems, and accounting organization is critical for the effective operation of small enterprises. Future research should focus on refining these areas to provide solutions that support the sustainable development and prosperity of small businesses.

Pioneering Emission Trading in Africa: An Architectural Design of a Blockchain-Powered Carbon Trading System

To achieve carbon neutrality by 2050 and reduce greenhouse gas (GHG) emissions to a range of 350–420 megatons of carbon dioxide equivalent, South Africa, the largest emitter of GHG in Africa, introduced a carbon taxation system in June 2019. However, within just 3 years, it has become evident that the system faces significant challenges, with less than 6% of the estimated tax returns reaching the government. This issue raises concerns about potential corruption and manipulation within the system. To address these challenges, this study presents a comprehensive framework for a carbon trading and taxation system leveraging blockchain technology (BCT). Designing this framework from the government’s perspective ensures efficient monitoring and oversight. Notably, the proposed system operates automatically, eliminating the need for third-party intermediaries. This study also identifies a crucial research gap and lays the foundation for future studies. It empirically implements the system as a decentralised application) using the Hedera and Solana blockchain networks. Complemented by JavaScript for the user interface. Python, through Django, was used to handle the server-side system implementation. Thus, this research aims to address the shortcomings of Africa’s current carbon taxation system through a novel, government-centric approach powered by BCT. The proposed system’s potential to enhance transparency and efficiency justifies further exploration in future studies.

Digital transformation and corporate tax avoidance: An analysis based on multiple perspectives and mechanisms.

Promoting the seamless integration of the digital economy with the real economy, mitigating the adverse impacts of widespread corporate tax avoidance, and optimizing tax governance are critical imperatives in the era of digital economy. This study examines all A-share listed companies from 2007 to 2022 as research samples. It utilizes multiple perspectives including signal theory, information asymmetry theory, and the T-O-E (Technology-Organisation-Environment) framework to investigate the primary impacts of digital transformation on corporate tax avoidance, along with the intermediate mechanisms and foundational conditions that influence its effectiveness. After conducting both theoretical and empirical analyses, this paper presents the following conclusions. (1) The implementation of digital transformation significantly reduces corporate tax avoidance, a conclusion supported by rigorous robustness tests. Moreover, digital transformation enhances corporate productivity through the suppression of tax avoidance. (2) Digital transformation diminishes corporate tax avoidance through enhanced innovation and efficiency in resource allocation (technology level), improved quality of internal controls (organization level), and decreased industry competition (environment level). (3) The impact of digital transformation in reducing tax avoidance is significantly greater for enterprises in their growth phase, experiencing lower financing constraints, particularly those situated in the central and western regions. (4) Lower business risk is essential for maximizing the effectiveness of digital transformation and reducing corporate tax avoidance. This is crucial for governments seeking to improve tax administration, guide market and regional development, and enhance the impact of corporate digital transformation on mitigating tax avoidance.