The Need for Modern Techniques of Tax Assessment and Tax Collection

Abstract

Efficient tax assessment and collection are essential for national revenue generation, economic growth, and sustainable development. However, traditional tax administration methods face challenges such as inefficiencies, tax evasion, revenue leakages, corruption, and poor taxpayer compliance. The need for modern techniques in tax assessment and collection has become increasingly important to enhance efficiency, transparency, and accountability. This study examines the limitations of manual tax assessment and cash-based collection methods and explores the benefits of technology-driven approaches such as electronic tax filing (e- taxation), artificial intelligence (AI)-driven tax compliance monitoring, blockchain for transparency, and automated payment systems. The adoption of digital taxation platforms, real- time data analytics, and mobile payment solutions can significantly reduce tax fraud, improve compliance, and optimize government revenue collection. Findings suggest that countries that implement modern tax technologies experience higher tax compliance rates, reduced administrative costs, and enhanced taxpayer convenience. The study recommends the integration of digital tools, enhanced legal frameworks, and taxpayer education programs to ensure the successful implementation of modern tax systems. This research contributes to the growing body of knowledge on digital taxation and offers practical solutions for tax authorities to improve revenue collection, minimize leakages, and create a fair, efficient, and transparent tax administration system.

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