Robot vs. tax inspector or how the fourth industrial revolution will change the tax system: a review of problems and solutions

The authors disclose the essence of tax planning for domestic enterprises in the conditions of development of the economy in the context of the Fourth Industrial Revolution. Foreign experience as to approaches to interpretation of the phenomenon of «tax planning» is studied. It is substantiated that the existing modern approaches to the definition of the term of «tax planning» should be divided by the characteristics of purpose and subordination. The work contains a further elaboration of conceptual-categorical apparatus of taxation theory by closer defining of «tax planning», where, contrary to existing developments, it is proposed to assess the impact of elements of the current tax system on the efficiency of financial-economic activities of enterprises. A theoretical analysis of modern trends of tax planning is carried out and it is determined that the existing conditions of operation of enterprises are such phenomena as: digitalization of economic processes, robotization of business processes, influence of other factors of the Fourth Industrial Revolution and growth of uncertainty and level of risks for economic entities. According to the results of the research, it is defined that all these phenomena will affect the process of taxation of enterprises at the micro level due to the acceleration of data processing processes and changes in tax planning objects. The article explains the directions of further research on this topic, namely, the development of an economic-mathematical model of the influence of elements of the tax system in the context of the trends of the Fourth Industrial Revolution, which becomes relevant in modern conditions of tax planning.

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Taxation and Humans in the Age of the Fourth Industrial Revolution – Financial and Ethical Comments

Acta Universitatis Sapientiae European and Regional Studies ◽

10.2478/auseur-2020-0005 ◽

2020 ◽

Vol 17 (1) ◽

pp. 103-117

Author(s):

Balázs Cseh ◽

József Varga

Keyword(s):

Industrial Revolution ◽

Tax System ◽

Fourth Industrial Revolution ◽

Economic Significance ◽

Production Processes ◽

Spare Time ◽

The World ◽

Historical Antecedents ◽

Modern Era ◽

Modern Machine

Abstract In our study, we focused on the fourth industrial revolution, which is the revolution of machines at the same time and which affects the world of worthy human work significantly. Let us examine the reasons behind the machine wrecking in the modern era and the technophobia, the negative and positive outcomes of additional spare time, and the state of unemployment. We touch upon the historical antecedents of modern machine wrecking and its present situation. We briefly draw possible alternatives as regards the subthemes. In this study, ethics is ascribed a focal attention since we approach the trends that affect the world of work and have an economic significance in the context of the fourth industrial revolution. We examine the process of Industry 4.0, which has led to a significant transformation of production processes from the aspect of taxation – for example, how the automation of the production processes influences the transformation of the tax system, where humanity is in the changing financial world, or which aspects of the tax system change in the age of the Fourth Industrial Revolution.

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Is South African Manufacturing SMMEs Ready for the Fourth Industrial Revolution?

Journal of Education and Vocational Research ◽

10.22610/jevr.v9i2(v).2798 ◽

2019 ◽

Vol 9 (2) ◽

pp. 20-26

Author(s):

Lizzie L. Mabotja

Keyword(s):

South Africa ◽

Education System ◽

Small Businesses ◽

Industrial Revolution ◽

Manufacturing Sector ◽

Small Enterprise ◽

Technological Advancement ◽

Fourth Industrial Revolution ◽

System A ◽

Depth Interview

The fourth industrial revolution is unquestionably resulting in significant changes in the workforce landscape, technological advancements, industry relations and it affects all aspects of society and the economy. This research paper is based on results from an earlier study focused on the challenges faced by small, medium and micro enterprises (SMMEs), sharing results from survey data and in-depth interview analyses conducted. A sample of 66 SMMEs was selected purposefully from the Small Enterprise Development Agency (SEDA)â€™s database where manufacturing SMMEs alluded to some of the critical challenges they are facing. A key finding from the research was that technological advancement and digital manufacturing are significant challenges for manufacturing SMMEs in South Africa. Small businesses are critical to South Africaâ€™s ability to participate profitably in the fourth industrial revolution. The research shows that there are significant challenges for manufacturing SMMEs and that should be urgently addressed if South Africa is to participate advantageously in the fourth industrial revolution. This study recommends embedding technology into education and embracing new advancements and machinery within the education system. A change in the education system will help create a supply for future skills needed in the manufacturing sector. Manufacturing SMMEs contribute to a stronger economy and should embrace automation and artificial intelligence; this requires determined and collaborative efforts from government, its agencies and private sector through broader information sharing, planning for future skills and a dedicated fund for technology and modern machinery funding across various industries, particularly manufacturing.

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The Expected Effect of the Fourth Industrial Revolution on the Hungarian Tax Structure

Regional and Business Studies ◽

10.33568/rbs.2332 ◽

2019 ◽

Vol 10 (2) ◽

pp. 1-10

Author(s):

József Varga ◽

Anita Ágoston ◽

Balázs Cseh ◽

Zoltán Sipiczki

Keyword(s):

Data Storage ◽

Industrial Revolution ◽

Labour Force ◽

Large Data ◽

Transformation Process ◽

Tax Base ◽

Tax System ◽

Fourth Industrial Revolution ◽

Production Processes ◽

The Operating Mechanism

In our publication we examine the process of Industry 4.0, which has led to a significant transformation of production processes from the aspect of taxation. At the beginning of the paper, we offer a brief survey of the Fourth Industrial Revolution, analysing the operating mechanism of M2M (machine to machine) and IoT (Internet of things), which are based on large data and cloud-based data storage technology. After that we examine the expected future impact of these processes. The transformation process of the domestic tax system since 2010 has been characterized by the decline in the proportion of taxes on labour and the increase in the proportion of turnover-type taxes. Our most important question is how the automation of the production processes influences the transformation of the tax system. This simulation study was carried out to compare different estimation procedures. Our new numerical results revels that the automation would result almost 6% of GDP cost reduction on live labour force in 2015 on the basis of our calculation. This process is not reversible, so in the future it is necessary to reform the tax system and to increase the tax base corresponding to the reduction of the direct cost of live labour.

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