Modernizing Tax Collection and Advancing Tax Reforms through Technology: A Comparative Legal Study of Pakistan and the United States

Abstract

This paper looks into how technology is being incorporated in the tax collection system and how it will help in moving tax reforms in a comparative legal analysis of Pakistan and the United States. The study has also identified the difficulties and the achievements of technological change in administration of tax and the need to have a solid legal system to support the digital tax reforms. Whereas the United States is witnessing an organized legal framework that has substantive statutory backing of technological tools such as electronic filing, data analytics and automated compliance, it is in the face of significant challenges with a divided legal framework, limited institutional capacity, and a small tax base. In this paper, the significance of matching technological innovation with explicit legal provisions, data protection, and taxpayer rights is highlighted to increase the effectiveness, transparency and confidence of the people. The paper comes up with a conclusion that sustainable tax reform can be achieved by ensuring a balanced combination of technology and legal frameworks hence making sure that there is efficiency as well as legal fairness.