KRA Second University Symposium, 9th October 2020—Impact of Technology on Tax Administration

Abstract

This study investigates the theoretical basis for revenue mobilization and the role of technology in tax administration. Public finance theory supports the growth of the share of government expenditures to GDP with implications of constraints for public investment financing. The equilibrium predicted in the theory of loanable funds is no longer sustainable because of shortage of domestic savings creating a situation of excess demand for funds to finance public investments. Leveraging on technology can be an important administrative policy for boosting revenue mobilization. The study concludes that both tax administration reforms and quality of governance are complementary to technology in tax revenue mobilization in the developing economies.