Digitalization of Tax Administration and Tax Avoidance

Abstract

This chapter delves into the Moroccan tax system's challenges, underscored by a significant tax shortfall as reported by the IMF. At its core, the study explores the nexus between digitalization in tax administration and taxpayer behavior, particularly focusing on tax avoidance. Conducted within the Moroccan reform context, the research utilizes qualitative insights from interviews with 30 tax administrators. The findings highlight that while digitalization and service facilitation promote tax compliance, a lack of trust and transparency can exacerbate tax avoidance. The study emphasizes the critical need for comprehensive tax reform in Morocco, targeting fairness and a robust relationship between tax authorities and taxpayers. Such reforms are essential to foster a business-friendly environment conducive to investment. This research contributes to the understanding of digital governance's role in tax administration and its potential to influence taxpayer behavior.