The Impact of Science and Technology on Taxation

It is impossible to provide a complete overview of all occurrences where taxation exercises influence on or is influenced by technology and science. However; it is feasible to demonstrate the interaction of technology, science and taxation in a number of selected areas. This article describes this dynamic as it relates to empirical legal research, which has the purpose of determining whether a particular law or process is actually achieving its stated objectives; the use of statistical science in tax auditing to determine the level of compliance through the analysis a relatively small part of the available date (sample); the introduction of technology in tax administration to streamline and enhance the efficiency of processing vast amounts of data, and the different complexities encountered by developed versus developing countries; and finally, the use of software technology, i.e., ERP systems and tax engines, by global corporations to improve their tax compliance and tax planning, especially in the area of sales and consumption taxes and customs duties.