The Use of Digital Technology by Belt and Road Tax Administrations

The growing trading links in the modern world have made it more difficult for tax administrations to monitor the activities of multinational enterprises(MNEs) operating on their territory.Advanced technology and communications have been used by MNEs to increase the scope of their operations and create global supply chains,while tax administrations try to use limited resources to apply the tax rules.The development of digital technology within government can help tax administrations to implement the latest international tax rules and monitor taxpayer activities more completely,improving domestic resource mobilisation.A benefit of more digitalisation for tax administrations is the ability to manage data and use analytical tools to make the best use of the data acquired.Wider international tax cooperation has provided tax administrations with access to information from country-by-country(CbC) reporting,the common reporting standard(CRS) and the exchange of tax rulings.These give tax administrations access to large volumes of data in relation to cross-border activities to facilitate risk assessment.Digitalisation can also reduce the compliance burden of taxpayers by making it easier to complete their tax obligations,helping them to integrate taxation processes into their routine business systems.Full use of technology combined with adequate governance can boost the efficiency of tax administration.The Belt and Road Initiative Tax Administration Cooperation Mechanism(BRITACOM) can be a platform for cooperation among tax administrations to gain more efficiency.It is important for BRI tax administrations to learn from each other through sharing their knowledge and experience in the introduction of digital technology.