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Moving to tax reform with artificial intelligence
Stephen Hawking once said that “intelligence is the ability to adapt to change”. Today, we’re facing a new era of disruption in digital technology. The internet, as the most remarkable milestone of the Third Industrial Revolution, has driven efficiency in our tax administration system.
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A building of the Directorate General of Taxation in Jakarta (kontan.co.id/File)
Stephen Hawking once said that “intelligence is the ability to adapt to change”.
Today, we’re facing a new era of disruption in digital technology. The internet, as the most remarkable milestone of the Third Industrial Revolution, has driven efficiency in our tax administration system, which we can conclude from the increase in the proportion of taxpayers filing their annual report using the electronic filing system, at 21.6 percent, while the manual method saw a decline of 12 percent (April 2018).
Furthermore, the Fourth Industrial Revolution has already emerged beyond imagination and is ready to change our realm dramatically. What makes the concept of this stage different from the third one is largely Artificial Intelligence (AI). It will play a qualitatively different role in the size, speed, and scope of work. The role between the user and the digital system will be blurred. In one way, it leads to optimism over the progress of tax reform in Indonesia, with some seeking stakeholders’ awareness.
The Directorate General of Taxation as the tax authority, is still running the third phase of the country’s tax reform. After the success of the tax amnesty, it is embracing the challenge of how to manage big data. With all the effort to merge billions of records from other institutions, such as the Directorate General of Customs and Excise, Directorate General of Immigration and local governments, it demands more than a digitalized system.
