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

4.1 T ax and T echnology

in D eveloping C ountries

By Pavlína Krausová (Charles University)

Introduction The purpose of this article is to examine the intricate relationship between technology and taxation in developing countries, focusing on the administrative and legal challenges and underscoring the importance of international collaboration. It delves into the specific circumstances of these countries, addressing key issues such as tax administration, technological adoption, and data management. This encompasses challenges in enforcing tax compliance, the difficulties of implementing international tax standards, and the potential of information technology in tax collection and analysis. Supplemented with specific examples and studies, the article will provide insights into both the problems and prospects of integrating tax and technology in developing countries. It aims to demonstrate how technological innovations can enhance tax compliance and expand the tax base, while also acknowledging the associated challenges of data protection, legal clarity, and maintaining equity in a digital society. The first part of the article focuses on the use of new technologies, including the digitization of tax systems, big data and analytics, and the application of blockchain technology. Each section will offer extensive examples from various countries, showcasing the diverse impact and potential of technology in improving tax systems. The second part concentrates on international cooperation, exploring how global tax policies and information exchange norms impact developing countries. It will evaluate the challenges and opportunities presented by international initiatives and standards, highlighting the crucial need for capacity building and support from international bodies. Finally, the article will discuss the development and protection of taxpayer rights in the context of technological advancements. It will emphasize the significance of data security, privacy concerns, and equitable access to technology, underlining the necessity for continued research, policy innovation, and international collaboration in this rapidly evolving field. 1. Preliminary Remarks Scope of the Term Developing Country Although the term developing country is extensively used in the international community, no globally agreed definition exists. Various organizations and institutions 353 define developing countries using a variety of criteria, including income, economic development, industrialization, standard of living, and other socioeconomic aspects. 353 For example the United Nations and the United Nations Conference on Trade and Development, the World Bank, the Organisation for Economic Co-operation and Development, or the International Monetary Fund. 1.1

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