OTS publishes review into impact of technology on taxation
The Office of Tax Simplification (OTS) has published a review into the impact of technology on UK taxation.
The review analyses how technology creates opportunities and poses challenges for UK taxation.
According to the OTS, technology could pose a risk for taxpayers in the future. The OTS argues that the use of technology to submit returns will not ‘remove the need for individuals and businesses to understand and comply with their tax obligations’.
The review puts forward some key points for the government to consider in regard to the impact of technology on taxation. The OTS recommends expanding the current personal tax account (PTA), and automatically enrolling taxpayers into the service; mitigating the risk of taxpayers ‘losing sight of their tax obligations’ through the use of technology; and monitoring the impact of the movement towards a cashless society.
Commenting on the issue, Paul Morton, Tax Director at the OTS, said: ‘Technology has transformed much of our day-to-day lives, in some areas almost beyond recognition. Although many tax-related activities have benefitted from a digital approach, we are still at the early stages of the potential transformation.
‘This paper explores some of the more difficult questions that new technology presents.’
The review can be read in full here.