What impact does digitization have on tax law?
October 2, 2023 | 40,00 EUR | answered by Lilli Reuter
Dear Tax Law Attorney,
My name is Jessica Kleine and I am currently intensively engaged in the topic of digitalization and its impact on tax law. I have heard that many processes in tax administration can change due to the advancing digitalization, and I am concerned about how this could affect me as a taxpayer.
Currently, I already feel overwhelmed by the existing tax laws and guidelines, and the potential additional changes through digitalization are causing me some uncertainty. I wonder, for example, if I need to prepare for complex new regulations, if digitalization will simplify or complicate my tax return, and if I may expect potential tax advantages or disadvantages.
My biggest concern is that I could lose track of my tax matters due to digitalization and could potentially make mistakes that could have consequences. Therefore, I am reaching out to you to gain more clarity and learn about possible solutions.
Could you please explain to me the specific effects of digitalization on tax law and how these could affect me as a taxpayer? Are there possibly new duties or rights that I should consider, and how can I best prepare myself to avoid any tax issues?
Thank you in advance for your support and guidance.
Sincerely,
Jessica Kleine
Dear Mrs. Kleine,
Thank you for your inquiry regarding digitalization and its impact on tax law. It is understandable that you are concerned about the possible changes and the associated uncertainty. Digitalization has indeed already begun to change tax law and will bring further developments in the future.
One of the biggest impacts of digitalization on tax law is the transition to electronic tax filing. Through the ELSTER project (Electronic Tax Return), taxpayers are encouraged to submit their tax returns digitally. This is not only intended to increase the efficiency and speed of the tax process, but also to reduce sources of error. As a taxpayer, you should familiarize yourself with the topic of electronic tax filing and consider submitting your tax return electronically.
Furthermore, digitalization leads to increased monitoring and control of tax matters by tax authorities. Through the use of data analysis and AI technologies, tax evasion can be detected and pursued more quickly. As a taxpayer, you should therefore pay special attention to ensuring that your tax information is correct and complete to prevent potential problems.
Additionally, digitalization can lead to new tax obligations and rights. For example, new regulations for the documentation and archiving of tax documents could be introduced, which you must comply with. It is advisable to regularly inform yourself about current developments in tax law and, if necessary, seek professional help to stay up to date.
To best prepare for the changes brought about by digitalization and avoid tax problems, I recommend that you familiarize yourself with the topic early on and seek professional advice if needed. Stay informed about the latest developments in tax law, use digital tools to support your tax filing, and keep your tax documents carefully and up to date.
I hope that this information has been helpful to you and I am available for any further questions.
Best regards,
Lilli Reuter
Tax Lawyer
