Emerging Technologies and Tax Administrations: At the Dawn of a Fundamental Transformation?

The emergence of new technologies such as blockchain and artificial intelligence are rapidly changing the way in which businesses operate. Such technologies are expected to fundamentally change the environment in which tax administrations evolve as well as the manner in which tax administrations interact with taxpayers and the tax audit process. This chapter discusses blockchain and artificial intelligence technologies as well as the key opportunities for tax administrations, notably the opportunity to provide transparent and reliable information to stakeholders. This chapter also explores how such emerging technologies may provide new approaches to wealth taxation, despite historic difficulties to implement such taxes in various jurisdictions and provides certain key elements to consider in establishing how these new technologies can assist tax administrations to fulfil their objectives. This chapter finally discusses the impact of emerging technologies on tax policy, as well as the future of tax administrations.