EFFECTIVENESS OF DIGITAL TAX ADMINISTRATION INSTRUMENTS IN MANAGING TAX ARREARS

Abstract

The effectiveness of tax arrears management increasingly depends on the capacity of tax authorities to employ digital administrative instruments that enhance compliance, improve monitoring, and ensure timely intervention. This study examines the role of digital tax administration tools in the management of tax arrears, with particular attention to their impact on collection efficiency, taxpayer discipline, risk identification, and the reduction of administrative costs. The analysis emphasizes that digital instruments, including automated notifications, taxpayer personal accounts, electronic payment systems, risk-based monitoring platforms, and data-driven compliance control mechanisms, contribute to a more proactive and differentiated approach to tax debt management. In contrast to conventional enforcement methods that primarily respond to arrears after their emergence, digital instruments enable earlier detection of non-compliance, strengthen preventive administration, and improve communication between tax authorities and taxpayers. The study argues that the integration of digital technologies into tax administration not only increases the effectiveness of arrears recovery but also supports the development of a more transparent, responsive, and sustainable tax management system. As a result, the expansion of digital tax administration instruments should be regarded as an important institutional direction for improving tax arrears management in modern fiscal systems.