Digital Transformation, Tax Evasion Reduction and Regulatory Frameworks: Evidence from HMRC and Global Tax Jurisdictions
Abstract
Tax evasion remains a persistent challenge undermining revenue generation and public confidence in tax systems globally. This study examines the effect of digital transformation on tax evasion reduction and investigates the moderating role of regulatory frameworks on digital transformation and tax compliance efficiency. Using survey data from 91 respondents across HMRC and global tax authorities, the study employs regression analysis to test relationships between digital transformation tools and evasion reduction outcomes. Findings reveal that AI-based compliance checks significantly reduce tax evasion across jurisdictions, while digital payment platforms and online filing systems show varying effectiveness. The study demonstrates that regulatory frameworks significantly moderate the relationship between digital transformation and tax compliance efficiency, with different tools showing varying importance across jurisdictions. Results suggest that while digital transformation provides powerful tools for combating evasion, their effectiveness depends critically on supportive regulatory environments and institutional capacity.
Keywords
Tax Evasion Reduction, Regulatory Frameworks, Digital Transformation, Tax Compliance Efficiency, AI-Based Compliance, Institutional Capacity
Citations
IRE Journals:
Temidayo Akindahunsi "Digital Transformation, Tax Evasion Reduction and Regulatory Frameworks: Evidence from HMRC and Global Tax Jurisdictions" Iconic Research And Engineering Journals Volume 9 Issue 6 2025 Page 924-933 https://doi.org/10.64388/IREV9I6-1712806
IEEE:
Temidayo Akindahunsi
"Digital Transformation, Tax Evasion Reduction and Regulatory Frameworks: Evidence from HMRC and Global Tax Jurisdictions" Iconic Research And Engineering Journals, 9(6) https://doi.org/10.64388/IREV9I6-1712806
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