The Role of Tax Authorities in Curbing Tax Evasion through Technology

Tax evasion remains a persistent challenge confronting tax administrations globally, eroding public revenues and undermining fiscal sustainability. The digital transformation of tax administration has emerged as a strategic response, with technology playing an increasingly central role in detecting, deterring, and reducing tax evasion. This study examines the role of tax authorities in leveraging technological innovations to curb tax evasion, focusing on artificial intelligence, big data analytics, blockchain, and digital audit systems. Through a systematic review of contemporary literature from 2020 to 2026, the research explores how technology enhances audit efficiency, improves risk assessment, and strengthens enforcement mechanisms. The findings reveal that technologically advanced jurisdictions have achieved significant improvements in tax compliance through AI-driven anomaly detection, real-time transaction monitoring, and predictive analytics. However, the study also identifies persistent challenges, including digital infrastructure limitations, data governance concerns, and the need for regulatory adaptation. The research contributes to the growing body of knowledge on digital tax administration and provides practical recommendations for tax authorities seeking to harness technology in the fight against tax evasion.

Keywords: Tax evasion, technology, artificial intelligence, tax administration, digital transformation, compliance