The Impact of Digital Technologies on Tax and Welfare
The numbers surrounding tax fraud have always been significant. For instance, in the US, tax evasion resulted in revenue loss of over $300 billion during 2010.
In the UK, the tax gap amounted to £35 billion in between 2012 and 2013. The EU is estimated to have lost over €193
billion in Value-Added Tax (VAT) revenues due to non-compliance or non-collection.
Such large numbers have traditionally kept Government tax and welfare authorities on their toes in the course of
time. Authorities have been engaged in a constant battle with fraudsters.
This research paper examines the advent of digital technologies and how it is helping tax authorities to have a slow, but steady, impact on traditional fraud.