The Influence of Artificial Intelligence on Improving Tax Collection

Abstract

This study, titled “The Influence of Artificial Intelligence on Improving Tax Collection: A Case Study of Zanzibar Revenue Authority (ZRA),” provides a comprehensive investigation into the impact of AI in tax collection processes at ZRA. The research aimed to achieve three specific objectives: assessing employees’ perceptions of AI implementation, examining AI’s role in detecting tax fraud, and assessing the potential impact of AI efficiency on improving tax collection. A quantitative research approach was employed, targeting a total population of 373 staff members involved in tax collection at ZRA, with a proportionate stratified sampling technique yielding a sample of 193 respondents. Primary data were collected using well-structured questionnaires and analysed using descriptive and inferential statistics with SPSS version 25. The findings revealed that ZRA employees have a strong positive perception of AI in tax administration, viewing it as a means to enhance tax compliance and revenue generation. Employees also recognised AI as an effective tool for detecting tax fraud and improving operational efficiency by reducing human error and managing large volumes of taxpayer data. Furthermore, the study recommends that the successful implementation of AI in tax administration relies on data quality, which requires high investments in data cleaning, standardisation, and validation. ZRA must also address data privacy and security to maintain public trust. Staff training on AI systems, including data analysis and ethical use, is essential to reduce resistance. Additionally, to ensure seamless integration with existing systems, ZRA should select a suitable Artificial Intelligence (AI) model and implement it through a phased approach, beginning with pilot projects.