and needed by the government, under the country’s tax laws, without hindering economic activity. In pursuing their mission, tax administrations face a number of challenges, including how to broaden the tax base by continually bringing and non-filers into compliance, strengthening organization and management, controlling tax evasion, improving tax collection, and facilitating voluntary compliance (Andreoni, 2006). The greatest challenge for any tax administration is achieving and maintaining a high degree of self-assessment and voluntary compliance by taxpayers. Well-designed taxpayer services, education programs, and creative measures can facilitate self-assessment and compliance. But the vexing questions that arise include what can be the effective system or approach of addressing the noncompliance (Horn, 2013). The need for effectiveness in tax administration operations is often vexing when dealing with hard-to-tax groups of the economy. For example, small businesses, farmers, and self-employed individuals who represent a large number of taxpayers. These groups usually lack the appropriate bookkeeping and accounting records to determine and assess their tax liabilities (Feinstein, 2008). It is very hard and expensive for the tax administrators to assess and collect taxes from these groups. Consequently, many small businesses especially in the informal economy of developing countries simply elude the tax net and are not taxed at all (Agola, 2010). All tax administrations find this sector considerably burdensome, given their large number, their pervasive nature and the relatively low contribution to revenue collections (Horn, 2013). This being the fact administrations look for technology to help deal with the massive numbers of taxpayers in this sector. In developed
and needed by the government, under the country’s tax laws, without hindering economic activity. In pursuing their mission, tax administrations face a number of challenges, including how to broaden the tax base by continually bringing and non-filers into compliance, strengthening organization and management, controlling tax evasion, improving tax collection, and facilitating voluntary compliance (Andreoni, 2006). The greatest challenge for any tax administration is achieving and maintaining a high degree of self-assessment and voluntary compliance by taxpayers. Well-designed taxpayer services, education programs, and creative measures can facilitate self-assessment and compliance. But the vexing questions that arise include what can be the effective system or approach of addressing the noncompliance (Horn, 2013). The need for effectiveness in tax administration operations is often vexing when dealing with hard-to-tax groups of the economy. For example, small businesses, farmers, and self-employed individuals who represent a large number of taxpayers. These groups usually lack the appropriate bookkeeping and accounting records to determine and assess their tax liabilities (Feinstein, 2008). It is very hard and expensive for the tax administrators to assess and collect taxes from these groups. Consequently, many small businesses especially in the informal economy of developing countries simply elude the tax net and are not taxed at all (Agola, 2010). All tax administrations find this sector considerably burdensome, given their large number, their pervasive nature and the relatively low contribution to revenue collections (Horn, 2013). This being the fact administrations look for technology to help deal with the massive numbers of taxpayers in this sector. In developed