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

associated with paper-based tax procedures. 366 A study analyzing the impact of ICT 367 on revenue mobilization in the Southern African Development Community (SADC) found that particularly internet usage and mobile subscriptions significantly boosts revenue generation across 12 member countries from 2001 to 2020. The effect was more pronounced with internet usage, indicating ICT’s role as a key revenue enhancer in the region. 368 As demonstrated below, many developing countries have established or are in the process of establishing digital taxation systems. This includes tax return e-filing, e-invoicing, and digital payment platforms. Technology can significantly aid tax authorities in identifying taxable entities and assessing tax liabilities, using tools like electronic billing machines for sales transactions and data from third-party sources such as employers and financial institutions. 369 Especially mobile technology has been harnessed for taxation services in several African countries. Taxpayers in Rwanda and Uganda, for example, can now pay taxes using mobile money services, which significantly reduces the costs and time associated with tax compliance for individuals and small businesses. 370 This overcomes challenges like inadequate postal systems and long distances to tax offices. Such service enables taxpayers to manage their data, view accounts and returns, and access information online, and can also be extended to intermediaries like tax advisors and accountants. 371 Another example may be Rwanda introducing Electronic Billing Machines as part of its efforts to improve VAT compliance and collection. These devices are used by businesses to record transactions and directly transmit sales data to the Rwanda Revenue Authority. This initiative has been effective in reducing VAT fraud and increasing revenues. 372 In Nigeria, the tax administration (FIRS) launched the TaxPro-Max platform in 2021. The platform is an online tax administration solution that allows taxpayers to register, file, and pay taxes electronically. TaxPro-Max also provides a single-view to taxpayers for all transactions with the tax administration. The FIRS has been reporting a consistent increase in revenue collection each year since the adoption of the platform. 373 366 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. 367 UNESCO defines ICT as a diverse set of technological tools and resources used to transmit, store, create, share or exchange information. 368 ‘Tax Revenue Mobilization Effort in Southern African Development Community (SADC) Bloc: Does ICT Matter?’, p. 10. 369 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. 317. 370 GSMA, ‘Paying Taxes Through Mobile Money: Initial Insights into P2G and B2G Payments’ ( GSMA , 4 December 2014) . 371 KfW Development Bank, ‘Information Technology in Tax Administration in Developing Countries’ ( KfW , 2015) , p. 19. 372 ‘Mandatory e-Invoicing in Rwanda: Electronic Invoicing System (EIS)’ ( Edicom, 22 March 2023) . 373 Addis Tax Initiative, ‘The Digital Transformation of Tax Administrations’ ( ati , 19 July 2023) .

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