CFE Opinion Statement TTC 1/2020 on Tax Administration Data Collection Practices

The CFE Tax Technology Committee was established in January 2018 in response to CFE’s recognition of the importance of digitalisation in the administration of taxes and the performance of the tax profession.

CFE welcomes the opportunities for efficiency of tax administration that digitalisation provides. We are wholly focused on the role of tax professionals, managing the risks posed to taxpayer and administrator alike by the development of Artificial Intelligence, and exploiting the benefits direct interaction between taxpayer and revenue authority brings.

This Opinion Statement discusses the implications of the digitalisation of tax administration processes, in particular with regard to the collection and protection of personal data by tax administrations. The Tax Technology Committee sees the following as vital issues to explore concerning information flow as part of digital transformation:

  • Maintaining the privacy of taxpayer data;
  • The storage of data;
  • Cybersecurity and the protection of personal data;
  • Digitalisation development resources – the availability of personnel and capital funding sufficient both for tax administrations and taxpayers;
  • Administrative and investigative powers of tax administration;
  • Data analytics, especially when subcontracted to the private sector.

We invite you to read the Opinion Statement and remain available for any queries you may have.