Science, Technology and Taxation

This first comprehensive study of the interaction between technology and taxation approaches the subject along four main avenues: insight and analysis gained from empirical legal studies conducted in the area of taxation; methods for improving the control and management of the tax function in business; tax auditing through statistical sampling; and changes in the fiscal environment as a result of technological capabilities.

Among the topics that arise are the following:

• what choices of sampling methodology exist;

• determination of both one-sided and two-sided confidence intervals;

• under what circumstances statistical sampling is acceptable as proof of underpayment and as a basis for penalties;

• the use of sampling agreements as a tool to improve taxpayers’ understanding of the process;

• complexities encountered by the introduction of technology in tax administration in developing countries;

• technological capability to detect economic activity in the informal sector;

• technological innovation as substitute for inadequate human capacity;

• improvements available to better monitor the movement and values of goods entering a country;

• safeguards to prevent unauthorized use of personal information;

• prioritizing resources to ensure that the key strategic objectives of the agency are being addressed;

• government defensive action and the threat to privacy; and

• capabilities and limitations of enterprise resource planning systems and tax engines.