From Modernization to Structural Exclusion? The Impact of Tax Collection Digitalization on Administrative Costs and Vulnerable Taxpayers

Abstract

The aim of this article is to define administrative costs and examine their impact on the efficiency of tax collection. The article focuses both on the direct administrative expenses incurred by tax authorities and the indirect costs borne by taxpayers. Special attention is devoted to the implications of tax administration digitalization. The author considers not only the potential for cost savings and increased transparency, but also the risks associated with the implementation of digital and electronic processes in public administration. The article's hypothesis was determined as follows: the digitalization of the tax collection system leads to lower direct and indirect administrative costs for both the tax administration and taxpayers. The research applies an analytical and comparative legal-economic methodology, combining a normative assessment of the tax system and its procedures with synthesis of its fiscal and socioeconomic impacts. The article critically reflects on the assumption that digitalization inherently reduces costs and demonstrates that, without adequate support measures, it may in fact deepen inequalities and lead to structural discrimination. The article concludes that an effective tax administration framework requires not only technological innovation but also a socially responsible approach that ensures equal access for all taxpayers. Therefore, the hypothesis is disproved.