The Impact of Digital Transformation of the Tax Accounting System on Reducing Tax Evasion: An Applied Study

Abstract

The study aimed to examine the impact of the digital transformation of the tax accounting system on reducing tax evasion at the Libyan Tax Authority in Sabratha, by investigating the effect of the taxpayer database, electronic tax returns, and electronic tax audits on enhancing transparency, improving the accuracy of information, and reducing opportunities for manipulation.

The study concluded that the integration of the digital database, electronic returns, and electronic audits forms an effective system for increasing tax collection, reducing human intervention — which in turn minimizes opportunities for corruption and errors — and enhancing trust in the system.

The study also recommended developing the digital infrastructure, linking databases among government institutions, expanding the scope of electronic returns, and strengthening tax audits through the use of artificial intelligence and big data analytics, along with providing continuous training for employees to improve their efficiency and ensure the optimal use of modern technologies.