The benefits of electronic tax administration in developing economies

This research paper provides context and direction for developing countries in improving their taxpayer service and compliance through the Korean experience of creating a tax compliance environment in a situation very similar to that facing most developing countries today. The National Tax Service (NTS) of the Republic of Korea, starting in the late 1990s to the present, moved to an e-tax system, achieving dramatic improvements in tax compliance while bringing down administrative and compliance cost. The case study is followed by a summary of how the Korean transition process can illuminate the central challenges facing developing tax institutions and a review of the authors' experiences with other tax modernization programs in developing economies.