THE USE OF DIGITAL TECHNOLOGIES AND ARTIFICIAL INTELLIGENCE IN IMPROVING TAX COLLECTION EFFICIENCY IN IRAQ

Abstract

It is no secret that the taxation system used in Iraq has been languishing in a great deal of challenges because of poor revenue collection, high rates of tax evasion and not to forget the continued adopting of what is now considered outdated ways of financial management. And because of what we see as from rapid development in the arenas of artificial intelligence and digital transformation technologies worldwide, there does come up a pressing need for a comprehensive reform of tax collection mechanisms. This reform takes the form of using advanced digital systems that can further transparency and at the same time bridge any compliance gaps. In this current study, we tried to investigate the role of modern technologies and how they can take the efficiency of tax collection in Iraq to the next the country so desperately needs. In doing so, it juxtaposes successful experiences from other countries in the world so as to propose practical ways for their applying them within the Iraqi institutional context. As a methodology, we follow an admixture of a descriptive analytical and comparative approach in which we assess such experiences namely those of France, India, the UAE, and Egypt. We them put them in comparison with the legislative and administrative state-of-affairs in Iraq.The results we obtained from the study suggest that the most visible obstacles to digital transformation can be described as the dearth of financial legislation and there is also no unified database that can be relied on in addition to the fragile state of the technical infrastructure in the country. However, we can recommend updating tax laws and enacting a personal data protection law as solutions towards bridging this gap. Moreover, we recommend adopting invoices and electronic signatures as these are vital necessities today for securing the reform the country anticipates to achieve. Lastly, we also call for more attention to the paramount importance of qualifying the relevant staff and providing them with advanced digital skills in this regard.