The Digital Transformation of Tax Administration

Digital transformation of tax administration is a journey which will take many years and requires many pieces to fit together to realise the full benefits. Heads of tax administration agree global actions to meet the current economic and administrative challenges.

Tax Administration 3.0


Published 8 December 2020



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  • About

This discussion document by the Forum on Tax Administration (FTA) sets out a vision for the digital transformation of tax administration, under which taxation becomes more of a seamless and frictionless process over time. The intention of this discussion paper, requested by Commissioners at the 2019 OECD Forum on Tax Administration Plenary in Santiago, is to stimulate debate and conversation, both on the vision and its component building blocks.
Digital transformation of tax administration is a journey which will take many years and requires many pieces to fit together to realise the full benefits. This includes co-development of many of the building blocks of future tax administration with other parts of government, with private sector actors and internationally.

It is hoped that this will lead to the establishment of a common language, framework and end-point, which will assist tax administrations in their individual and collective consideration of the digital transformation journey. It is envisaged that the next step will be to develop a roadmap identifying the priority areas for future Forum on Tax Administration work.

  • Other OECD work on digital transformation

OECD Going Digital project
Selected publications by the Forum on Tax Administration
  • Unlocking the Digital Economy – A Guide to Implementing Application Programming Interfaces in Government (OECD 2019)
  • Implementing Online Cash Registers: Benefits, Considerations and Guidance (OECD 2019)
  • The Sharing and Gig Economy: Effective Taxation of Platform Sellers (OECD 2019)
Selected publications by the OECD Going Digital project
  • Going Digital: Shaping Policies, Improving Lives (OECD 2019)
  • Measuring the Digital Transformation: A Roadmap for the Future (OECD 2019)

Heads of tax administration agree global actions to meet the current economic and administrative challenges

  • Forum on Tax Administration (FTA)

Tax administrations are playing a critical role as governments deal with the economic recovery from COVID-19 following an unprecedented global crisis. Today, senior officials from the 53 members of the OECD Forum on Tax Administration, which includes all OECD and G20 members, agreed an ambitious agenda for the next year, focused on enhancing resilience and tax certainty as well as the digital transformation of tax administrations.

The Forum on Tax Administration (FTA) held its virtual plenary meeting on 7-8 December 2020 bringing together tax commissioners from across the globe and representatives from international organisations and regional tax administration bodies. They met to discuss a variety of tax administration issues including responses to the global pandemic, emerging risks, digital transformation and tax certainty.

The Forum on Tax Administration (FTA) is a global forum on tax administration for Commissioners. It has 53 members, including all G20 and OECD member countries as well as selected advanced and emerging non-OECD economies. The work of the Forum is overseen by a Bureau of 13 Commissioners from the participating revenue bodies and is chaired by Bob Hamilton, Commissioner of the Canada Revenue Agency. The FTA has extensive collaboration with a wide range of international and regional organisations, including the IMF, IOTA and CIAT as well as key stakeholders in the private and public sector.

FTA members agreed...

  • To improve the resilience and agility of tax administrations globally to respond to crises, including through collaboration on new ways of working, the development and use of new IT tools, and different working arrangements.
  • To develop a roadmap in early 2021 for the digital service transformation of tax administrations building on the vision for Tax Administration 3.0 published at the Plenary. This roadmap will aim to identify priority work on core elements of this vision, such as digital identity, e-invoicing and secure mechanisms for the real-time sharing of information across borders.
  • To ramp up work on tax certainty, including through moving the International Compliance Assurance Programme (ICAP) from a pilot phase to an established programme for the co-ordinated assessment of multinational enterprise groups' transfer pricing risks.
  • To bring together senior FTA leaders in the spring of 2021 to consider collective FTA support for capacity building in developing countries, in particular around the digitalisation and the further development of the joint OECD/UNDP Tax Inspectors Without Borders initiative.
"I am very proud of how tax authorities responded to the emerging COVID-19 crisis, working individually and co-operatively, and at great pace, to improve our individual and collective responses. The programme of work that we have agreed today, which builds on our achievements over this difficult year, will help us emerge from the crisis stronger, more resilient and more agile", said Bob Hamilton, Chair of the FTA and Commissioner of the Canada Revenue Agency. "Our collective work and sharing of best practices will take us to the next level, which is essential to meet the needs and expectations of citizens, businesses and governments around the world."
"Learning the lessons from the crisis, where tax administrations played a pivotal role, will be critical during the recovery period and in building future resilience", said Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration. "The pandemic has also accelerated thinking about the use of digital technology and tools, including how digitalisation might lead to fundamental changes in the administration of tax as set out in the FTA's paper on Tax Administration 3.0. Our collective work on the steps to realise this vision may be an important legacy of this crisis."

Sources : OCDE : Heads of tax administration agree global actions to meet the current economic and administrative challenges, 8 December 2020



      Tags

      • Tax administration 3.0
      • priority areas
      • roadmap