Development and Integration of Core Tax Administration System (CTAS) for Modernization of National Tax System

Abstract

The modernization of national tax systems is a critical challenge for governments aiming to enhance efficiency, compliance, and revenue collection. Traditional tax administration systems often face limitations due to manual processes, fragmented operations, and susceptibility to fraud. This study explores the development and integration of a Core Tax Administration System (CTAS) as a transformative solution to address these challenges. The research aims to assess the effectiveness of CTAS in streamlining tax administration, leveraging advanced technologies, and fostering institutional readiness and taxpayer engagement.  Using a qualitative research methodology, the study examines case studies of CTAS implementations in various countries, analyzing their technological components, operational outcomes, and contextual factors. Data were collected through document analysis, expert interviews, and comparative analysis to provide a comprehensive understanding of CTAS's impact.  The findings reveal that CTAS significantly enhances operational efficiency by automating processes and integrating data systems. Advanced technologies such as big data analytics, artificial intelligence, and blockchain improve fraud detection, compliance monitoring, and transparency. Institutional readiness and stakeholder collaboration are identified as pivotal for successful implementation. Furthermore, CTAS’s modular architecture allows for scalability and adaptability to diverse tax regimes and global reforms.  This research concludes that CTAS is a pivotal tool for modernizing tax systems, offering improved administrative performance and enhanced taxpayer satisfaction. The study contributes to the theoretical and practical understanding of digital transformation in tax administration and provides actionable insights for policymakers and tax authorities globally.