Tax administration digitization practice in Japan study

Abstract

The tax policy of the state in conjunction with the methods of tax administration is a determining factor influencing the amount of tax revenues of the budget. Tax discipline, forms and close interaction between taxpayers and regulatory authorities also play a significant role.   The development of information and communication technologies (ICT) in recent decades has provided the tax authorities with a wide range of opportunities to increase government revenue, improve the efficiency and quality of services provided to taxpayers, including electronic filing of returns and payment of taxes, while reducing the administrative burden on taxpayers and reducing public administration costs.

The first phase of digitalization was the computerization of routine tax administration processes (such as taxpayer registration and income records), and in the second half of last decade and early this decade, many tax authorities adapted their websites to simplify operations by introducing online forms and calculators for taxpayers.