A recent study has found that the implementation and uptake of technology across the globe has made paying and complying with taxes easier, saving time, effort and money.
The World Bank Group’s annual report, this year entitled Paying Taxes 2020, highlights the significant advantages tax administrations provide their taxpayers if they embrace technological advances.
The report uses four key measures to evaluate the ease of paying business taxes: time to comply, number of payments, total tax and contribution rate and a post-filing index.
Overall, the global average of the compliance burden for business taxation remained fairly flat year-on-year across these measures but there have been significant policy shifts among individual economies.
For example, the introduction of technological advances means that the average time to comply with tax obligations is 27 hours shorter than in 2012, while there have been 4.4 fewer payments required.
As the report points out, new technologies offer tax administrations multiple opportunities to make the process of paying taxes more efficient and these are constantly evolving.
It also underlines that it is important for tax administrations to keep up to date with developments in technology and to exploit these for the benefit of themselves and taxpayers.
Meanwhile, the businesses paying the tax should incorporate new tax technology into their operations to respond to the increased demand for data from their relevant tax administrations.
As one of the report’s authors commented, if paying taxes is seen as easy and straightforward, it can generate support for the collection of revenues that are vital in providing economies with much-needed services.