Assessing digital technology adoption in enhancing tax compliance in South Africa: a scoping review.

Abstract

Tax compliance prior to digital technology advancements in tax was a complex and labourintensive process, which relied on paper-based systems and extensive manual tax administration. Streamlined processes and faster transactions enabled by digital technology, make it simple for taxpayers to become tax compliant. With a specific focus on understanding how these technologies enhance tax compliance, this research investigated the adoption of digital technologies within tax administration in South Africa. The intent of the study was to provide a comprehensive literature review to assess the determinants influencing the adopting of digital technologies by exploring what drives their successful adoption in tax administration and examining the potential challenges and barriers that may hinder their adoption. The research utilised academic literature from sources like Google Scholar and ResearchGate to map the extent of digital technology adoption and its impact on tax compliance in South Africa by drawing from scoping review methodology that Arksey & O'Malley (2005) endorsed. Selected studies in the review spanned from 2019 to 2024. During this period, the South African tax authority enhanced online tax filing features. These improvements marked a major step forward in using digital technology for tax compliance. The insights gained from the review revealed that digital technology adoption is impactful on taxpayer compliance in South Africa. Among the determinants identified are the availability of robust digital infrastructure like network signal availability and access to a continuous and uninterrupted electrical power, government and tax policy support, taxpayer education and ease of use of digital platforms. The research also identified possible adversities affecting the technology adoption such as taxpayer behaviour, inequality in access to digital technology for example limited availability of digital devices in rural regions and complexity of the tax system. The study recommends that the government implements digital literacy and tax education programs, increases transparency in tax revenue usage and addresses digital technology access inequalities to further enhance the adoption process. Future researchers may explore how specific digital infrastructure components such as internet speed and reliability, mobile network quality, and electricity availability impact the adoption of digital tax technologies by using primary data analysis.