New Technologies in International Law / Tymofeyeva, Crhák et al.

and interpretation. Tax officials must be equipped with specialized computer training to manage potential system failures. 422 A perception of the taxpayers also remains of importance. A study conducted in Pakistan confirms a strong association between fairness perception and tax compliance, aligning with existing literature that suggests taxpayers are more likely to evade taxes if they view the tax system as unfair. 423 Taxpayers may be also hesitant to use technology tools due to lack of information and trust, security concerns, or high costs of adoption. 424 The current Annual Report of the IBFD Observatory for the Protection of Taxpayers’ Rights included an observation that increased use of digital resources could present challenges, particularly for those members of society who may not have access to or be familiar with technology and may struggle to navigate the digital landscape. 425 In many low- and middle-income nations, infrastructural shortages, such as restricted internet and energy access, might inhibit taxpayers’ effective adoption of technology, particularly among the disadvantaged, raising issues about equity. 426 Businesses, particularly small and medium-sized firms (SMEs), require IT infrastructure to comply with tax administration. Unfortunately, a huge portion of developing-country SMEs do not yet have access to basic IT infrastructure. 427 Based on the outcomes of the study conducted in Southern African Development Community, affordability of ICT products should be prioritized to give wider access to internet usage in order to eradicate the challenge of digital divide. 428 For example, a recent study using data from Ethiopia evaluated the impact of Electronic Sales Register Machines (ESRMs) on tax collection. It found that even though VAT collections increased following ESRM adoption, there was a slight negative impact on new firm entry, hinting at a potential reduction in the tax base. 429 This could suggest a technological barrier. Even developing countries may consider supplying or subsidizing tax planning and preparation software for low-income population. 430 Conclusion The purpose of this article was to offer a more complex view of opportunities and problems of tax and technology in developing countries, including a variety of practical examples and studies. As proven by successful projects such as Rwanda’s Electronic 422 Ibid., pp. 109, 112–113. 423 Perveen N and Ahmad A, ‘Tax Technology, Fairness Perception and Tax Compliance among Individual Taxpayers’ (2023) 2(2) Audit and Accounting Review 99, p. 113. 424 Okunogbe O and Santoro F, ‘The Promise and Limitations of Information Technology for Tax Mobilization’ (2023) 38(2) The World Bank Research Observer 295, p. 318. 425 Baker P, Pistone P and Turina A, ‘The IBFD Yearbook on Taxpayers’ Rights 2022’ ( IBFD , 15 May 2023) , p. 41. 426 ‘The Promise and Limitations of Information Technology for Tax Mobilization’, p. 318. 427 Umar MA and Masud A, ‘Why Information Technology is Constrained in Tackling Tax Noncompliance in Developing Countries’ (2020) 33(2) Accounting Research Journal 307, p. 307. 428 Jemiluyi OO, ‘Tax Revenue Mobilization Effort in Southern African Development Community (SADC) Bloc: Does ICT Matter?’ (2023) 11(1) Cogent Economics & Finance 1, p. 10. 429 Ali M, Shifa AB, Shimeles A and Woldeyes F, ‘Building Fiscal Capacity in Developing Countries: Evidence on the Role of Information Technology’ (2021) 74(3) National Tax Journal 591, pp. 616–617. 430 Walker DI, ‘Tax Complexity and Technology’ (2022) 97(4) Indiana Law Journal 1095, pp. 1142–1143.

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