The Impact Of Tax Administration Modernization

Abstract

This study investigates the impact of two primary independent variables - tax administration modernization and governance frameworks- on the dependent variables of tax compliance and revenue sustainability within the global extractive industries from 2020 to 2025. As resource-rich nations navigate the complexities of the post-pandemic economic landscape and the global energy transition, the digitalization of tax systems—incorporating Artificial Intelligence (AI), Blockchain, and Big Data—has emerged as a pivotal factor in enhancing fiscal capacity (Abdullah & Almaqtari, 2024). By providing an exploratory and analytical reading of authoritative institutional reports and scholarly literature, this research analyzes how modern legal designs and institutional reforms mitigate corruption risks and improve transparency, thereby fostering higher levels of taxpayer compliance (World Bank, 2020; Sofrona et al., 2025). The findings suggest that revenue sustainability is not merely a function of tax rates but is deeply rooted in 'universalization reasoning' and the moral internalization of compliance linked to the perceived effectiveness of public spending (Muñoz-Sobrado, 2025). Ultimately, the study identifies that a robust nexus between technological adoption and strong governance is essential for securing long-term domestic resource mobilization and achieving the Sustainable Development Goals (SDGs) (OECD, 2025; United Nations, 2021).