The role of data in simplifying tax systems in Commonwealth countries
Commonwealth countries are digitalising tax systems to simplify compliance and improve efficiency. However, vast tax data remains underutilised. This brief argues that data-driven strategies should be central to revenue collection, enhancing enforcement, detecting non-compliance, and informing policy.
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The role of data in simplifying tax systems in Commonwealth countries V2.pdf
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- There has been a huge drive to digitalise and simplify tax systems in Commonwealth countries. Simplified tax systems can reduce the compliance burden for taxpayers and improve efficiency for tax authorities.
- A key benefit of digitalisation is that it produces colossal volumes of data. Yet for many tax authorities, this data remains underutilised.
- This brief argues that data utilisation should lie at the heart of revenue collection strategies.
- Effective data usage can enhance enforcement, detect non-compliance, generate evidence for policy decisions, and unleash the use of modern tools such as machine learning.
- Establishing specialised data analytics units within tax authorities—such as Senegal’s tax data lab—can improve data integration, risk assessment, and compliance monitoring.