The Impact of Digital Knowledge Management on Tax Compliance Efficiency: An Empirical Study of the General Tax Authority

Abstract

This paper investigates the relationship between knowledge management processes and tax efficiency in the context of tax administration organizations. A sample of 52 employees from the Federal Taxation Bureau was selected using stratified random sampling. Data were collected through a structured questionnaire examining various aspects of knowledge management processes, including knowledge acquisition, organization, and transfer, as well as tax efficiency indicators, such as compliance and effectiveness. Statistical methods, including Pearson Correlation and multiple regression analysis, were used to analyze the data. Our findings reveal a statistically significant positive relationship between knowledge management processes and tax efficiency, with a Pearson Correlation Coefficient of 0.561 at a significance level of 0.01. The results also support the hypothesis that knowledge management processes have a substantial impact on tax efficiency. Specifically, we found that the combined effect of knowledge management process variables accounts for 31.5% of the variance in tax efficiency. This study contributes to the understanding of the role of digital knowledge management in enhancing tax administration organizations' performance. The findings suggest that investing in effective knowledge management practices, such as capturing, storing, and sharing tax-related information, can lead to improved tax efficiency. Based on these results, we recommend that tax administration organizations focus on developing and implementing robust knowledge management strategies to boost their performance and compliance with tax regulations.