Transforming Taxation Systems through Predictive Analytics and AI-Driven Compliance Monitoring Tools
Year: 2024
Type: article
Abstract: Taxation is a sign of civilized society where a part of income is given by businesses and individuals for the overall development of the economy. This true spirit of taxation is lost in the current world where every economy is attempting to survive in its growth path. Developed, asymmetric, and developing economies suffer the menace of tax evasion. Entrepreneurship and wealth creation is stunted due to these reasons. Bhutan, a modern economy which survived centuries in isolation without the need for taxation has initiated measures to introduce taxation as one of the major sources for funding developmental programs. This unique situation where taxation is yet to settle in the consciousness of citizens has thrown open the panorama of exploring sources for tax compliance. Several nations have exploited Artificial Intelligence in various walks of life. With respect to tax compliance also, there are enough evidences of AI being used as a nudge for influencing an individual's decision-making ability. Machine learning based detection of illicit behaviors and transactions with the integration of Big Data Analytics has aided the employees in ensuring Tax Compliance. AI tools have been employed in Revenue Forecasting, Digitalization of Tax Compliance Process, Risk Detection, Behavior Analytics, Predictive Analytics, Improving Taxpayer Experience, Sentiment Analysis etc. The focus of the study is limited to how predictive analytics and compliance tools with the strategic Tax Authorities if utilized effectively would unleash the potential of tax compliance in a country like Bhutan, which yet is at an infant stage of accepting Tax as a moral responsibility - a contributing factor towards building socio-economic development in Bhutan.
Author: Vamsee Pamisetty
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W6931406500