Abstract

Technological developments create new capabilities that have the potential to solve existing business problems and exploiting new opportunities. The rate of technology change is faster compared to organizations’ adoption of technology. This difference creates a gap that may push organizations to reset. Tax agencies are faced with the problem of traceability and fast changing business environment that challenges traditional tax administration systems. To address these challenges, this paper suggests converge of blockchain, Internet of Things, and analytics technology. Each of these technologies creates new capabilities that tax agencies can leverage to solve existing challenges of traceability of transactions, improve efficiency and align tax agencies operations to digital transformation. The paper proposes change of business model for tax agencies to operate as ecosystems as opposed to the current models. By adopting these changes, tax agencies are expected to grow their taxpayer base, facilitate taxpayer compliance, improve their relationship with taxpayers, and rely on intelligence for tax administration.