Essence of Electronic Tax Systems in the Management of Taxes

The deployment of technological innovations to enhance efficiency and accuracy has led to a considerable impact on various commercial sectors globally. In the absence of relevant technological innovations, it would have been burdensome to capture, let alone store and process voluminous commercial transactions. The present paper aims to expounding the significance of electronic device machines (EDMs) as a technological innovation in the management of taxes. A review methodology was utilized to analyze extant literature with regards to the topic. A predetermined inclusion and exclusion criteria was employed to determine the relevance of papers that were analyzed. Through thorough synthesis of articles that were analyzed, the study found four benefits of EDMs as a technological innovation in the management of taxes. Firstly, EDMs prevent tax data manipulation which is rampant when taxes are collected manually; secondly, EDMs allow for real-time transactions where tax data is instantly sent to tax collecting bodies thereby improving efficiency; thirdly, EDMs prevent tax evasion thereby enhancing revenue collection; and finally, EDMs provide tax audit trail from the data sources thereby enhancing tax compliance. In a nutshell, adoption of EDMs as a technological innovation is vital in the process of managing tax as it minimizes challenges faced by tax collecting bodies when the exercise is done manually.