Automated Tax Assessment Systems: Stakeholder Impacts, Benefits, Challenges, and Future Trends
Abstract
Abstract
Objective: The purpose of this study is to examine the multifaceted impact of these systems in Australia, Estonia, Singapore, India, South Africa, Sweden, and the United Kingdom, where varying degrees of tax automation have been implemented. Prior Work: Automated tax assessment systems have fundamentally transformed tax administration worldwide, with significant implications for taxpayers, governments, tax professionals, and software developers. Approach: This study uses document analysis, and the relevant keywords were used to select the appropriate articles from academic databases, including ScienceDirect and Google Scholar. Findings: The analysis reveals that automation delivers substantial benefits including improved compliance rates, reduced processing times, and decreased administrative costs. Taxpayers benefit from simplified filing procedures and faster refunds, while governments gain access to real-time data analytics and improved fraud detection capabilities. However, these systems also present notable challenges including digital divide concerns, vulnerabilities, and adaptation requirements for tax professionals whose roles are evolving from data processors to strategic advisors. Implications: The research further explores future implications as artificial intelligence and machine learning capabilities advance, suggesting a trajectory toward increasingly personalised tax services, enhanced predictive compliance models, and potential shifts in tax policy design. The analysis suggests that successful implementation requires robust digital infrastructure, comprehensive stakeholder education, and adaptive regulatory frameworks. As tax automation continues to evolve with artificial intelligence integration, policymakers must balance technological advancement with equitable access and appropriate human intervention to ensure these systems serve the diverse needs of all stakeholders while maintaining public trust. Value: The main contribution of this study is improved compliance rates and revenue collection.
Keywords: Auto assessment, electronic tax filing, SARS, E-filing, Tax compliance, Artificial intelligence.
References
References
Australian Taxation Office. (2023). Digital transformation outcomes report 2018-2023. Canberra: Commonwealth of Australia.
BusinessTech. (2025). SARS announces full list of changes for Tax Season 2025. Available at: https://businesstech.co.za/news/finance/830526/sars-announces-full-list-of-changes-for-tax-season-2025/.
Carter, L., Schaupp, L. C., & McBride, M. E. (2020). The U.S. e-file initiative: An investigation of the antecedents to adoption from the tax preparer's perspective. Journal of Information Technology, 35(1), 3-19.
Chen, J. V., Jubilado, R. J. M., Capistrano, E. P. S., & Yen, D. C. (2019). Factors affecting online tax filing—An application of the IS Success Model and trust theory. Computers in Human Behavior, 85, 90-102.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340.
Estonian Tax and Customs Board. (2022). Digital services impact assessment 2022. Tallinn: Republic of Estonia.
Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerisation? Technological Forecasting and Social Change, 114, 254-280.
Gupta, S., Keen, M., Shah, A., & Verdier, G. (2021). Digital revolutions in public finance. Washington, DC: International Monetary Fund.
Hidayat, M., & Defitri, S. Y. (2024). Digitalization and the Changing Landscape of Tax Compliance (Challenges and Opportunities). Accounting Studies and Tax Journal (COUNT), 1(1), 131-139.
HMRC. (2023). Annual report and accounts 2022-2023. London: HM Revenue & Customs.
Hood, C. (1991). A public management for all seasons? Public Administration, 69(1), 3-19.
Indian Ministry of Finance. (2023). GST implementation review report. New Delhi: Government of India.
Inland Revenue Authority of Singapore. (2022). Annual report 2021/22. Singapore: IRAS.
Krimmer, R., Kadak, T., & Alishani, A. (2018). Supporting the e-governance systems development with educational resources in Estonia. In Proceedings of the 11th International Conference on Theory and Practice of Electronic Governance (pp. 128-137).
Nkosi, G. P. (2024). The role of auto-assessments in increasing tax compliance. University of Johannesburg (South Africa).
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.
OECD. (2022). Tax administration digitalization: Towards implementation. Paris: OECD Publishing.
Okunogbe, O. M., & Pouliquen, V. (2022). Technology, taxation, and corruption: Evidence from the introduction of electronic tax filing. American Economic Journal: Economic Policy, 14(1), 341-372.
Okunogbe, O., & Santoro, F. (2023). The promise and limitations of information technology for tax mobilization. The World Bank Research Observer, 38(2), 295-324.
Okunogbe, O., & Santoro, F. (2023). Increasing tax collection in African countries: The role of information technology. Journal of African Economies, 32(Supplement_1), i57-i83.
O'Reilly, T. (2011). Government as a platform. Innovations, 6(1), 13-40.
Pippin, S. E., & Tosun, M. S. (2014). Electronic tax filing in the United States: An analysis of possible success factors. Electronic Journal of e-Government, 12(1), 22-38.
Santoro, F., Groening, E., Mdluli, W., & Shongwe, M. (2020). To file or not to file? Another dimension of compliance—The eSwatini taxpayer survey. World Bank Policy Research Working Paper, (9343).
South African Revenue Service 2020 https://www.sars.gov.za/media-release/filing-season-2020/
South African Revenue Service. (2023). Annual performance plan 2023/24. Pretoria: SARS.
Thomson Reuters. (2025). 2025 state of tax professionals report: Technology is driving growth and change. https://thomsonreuters.com/institute.
Tax Consulting South Africa. (2020). SARS NEW AUTO-ASSESSMENTS – WHY SOUTH AFRICAN EXPATRIATES MUST BE FULLY COMPLIANT. Available at: https://www.taxconsulting.co.za/news-sars-new-auto-assessments-why-south-african-expatriates-must-be-fully-compliant/.
World Bank. (2020). Digital government readiness assessment toolkit. Washington, DC: World Bank Group.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Nompumelelo Sithebe, Mary Mutanda, Lesley June Stainbank
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.
