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Chapter 3 Tax Administration and Digitalization

The ever-accelerating pace of transformation in economic and social digitalization has
brought greatly enhanced capacities in data storage and processing, and given rise to
new technologies and business models. Meanwhile, it poses unprecedented challenges
as well as significant and fundamental changes to tax administration. In this context,
two topics are set in this theme, namely Tax Administration System and Digitalization
of Tax Administration, aiming to jointly promote tax administration and digitalization,
and facilitate taxpayers in the BRI jurisdictions.

3.1 Tax Administration System

The tax administration system is an integral system forged by the interconnection and
interaction of all elements of tax administration activities, with its scientificity,
validity and completeness as important indicators of the tax administration capacity of
a jurisdiction. The structure and regime of tax administration are the main elements of
a jurisdiction’s tax administration system. This topic discusses these two elements and
shares tax administration experience of the BRI jurisdictions. In view of the fact that
digital transformation is the current trend in global tax administration, a topic is
dedicated to the Digitalization of Tax Administration (hereinafter referred to as
“DTA”) in the following part.

3.1.1 Structures of Tax Administration

The tax administration system is not only a symbol of the division of tax
administration authority, but also a normative regime that disciplines taxation.
Concerted efforts of governments at all levels are indispensable in the formulation and
implementation of tax policies, as well as in tax administration. For this reason, a set
of administrative norms shall be established to clarify tax legislation, law enforcement
and the division of tax administration authority between the central (or federal
government) and local governments, so as to mobilize every bit of driving force in tax
administration. By introducing those elements of tax administration one by one, the
subtopic aims to present a general idea from a macro perspective to participants from
the BRI jurisdictions.

This subtopic includes two courses. Overview on Structures of Tax Administration
introduces the definition, development and design principles of all elements of tax

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