<![CDATA[Tax digitalization has become a key trend in government efforts to improve tax efficiency, transparency and compliance. However, along with these technological advances, there is also new potential for more sophisticated and complex tax avoidance practices. This research aims to investigate the impact of tax digitalization on the potential for tax avoidance in the era of rapidly developing information technology. This research uses a qualitative approach with descriptive methods. The results of the discussion show that digitalization of taxation carries the risk of increasing tax evasion caused by the shadow economy, especially in the context of an economic structure that is moving towards digital. Factors such as high taxes and compliance costs can drive the emergence of the shadow economy. Even though digitalization is supposed to simplify the taxation process, sophistication in technology is also used by shadow economy actors to avoid taxes. Global challenges arise from international digital companies and the complexity of taxing cross-border transactions. In a positive context, digitalization provides efficiency and openness in registration, reporting, data access, bill management, increased data accuracy and taxpayer compliance. Technology integration creates an environment that supports increased taxpayer compliance, provides better accessibility of tax information, and motivates stronger compliance among taxpayers..]]>
