A Systematic Literature Review: The Role of Tax Audit in Enhancing Taxpayer Compliance and Revenue Performance in the Digital Economy Era
Keywords:
Tax Audit, Digital Economy, Taxpayer Compliance, Artificial Intelligence, Risk-based Audits.Abstract
This systematic literature review examines the role of tax audits in enhancing taxpayer compliance and revenue performance in the digital economy era. As the digital economy continues to evolve, traditional tax administration faces significant challenges in monitoring electronic transactions and digital business models. The integration of digital technologies such as e-invoicing, big data, and artificial intelligence (AI) has shown promising results in improving tax compliance and audit effectiveness. Through the use of these technologies, tax authorities can perform real-time transaction monitoring, enhance fraud detection, and streamline risk management processes. Additionally, the implementation of risk-based audits and e-audits has proven to increase audit efficiency and taxpayer responsiveness. However, the review also identifies challenges, particularly in developing countries, including limited technological infrastructure, data integration issues, and difficulties in tracking taxable income in the gig economy. The study concludes that a combination of technology adoption, regulatory innovation, and improved digital literacy is essential to strengthen tax compliance in the digital era. It also emphasizes the need for further empirical research to better understand the effectiveness of digital audit systems and to guide the development of more effective tax policies. This review highlights the importance of adopting flexible and adaptive audit systems that leverage digital technologies to ensure fair, transparent, and efficient tax administration in the digital economy.
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