INNOVATION IN TAX ADMINISTRATION MODELS IN THE CONTEXT OF THE DIGITAL ECONOMY

Against the backdrop of the rapid development of the digital economy, traditional tax administration models face multiple challenges, including base erosion, information asymmetry, and outdated management technologies. This paper systematically analyzes the impact of characteristics inherent to the digital economy—such as virtuality, data-driven nature, and network externalities—on tax administration, highlighting the limitations of traditional models in areas like data integration, risk identification, and cross-border coordination. Based on theories from information economics, behavioral economics, big data, and artificial intelligence, practical pathways for innovating tax administration models are proposed: building a smart taxation system to enhance administrative efficiency through big data analytics and AI technologies; strengthening international cooperation to promote the coordination of international tax rules and information sharing; and improving legal frameworks to clarify the legal status of digitalized administration. The driving role of technological innovation and institutional optimization in modernizing tax administration is validated through domestic and international case studies (e.g., Shenzhen’s smart tax system, U.S. big data risk control, Singapore’s blockchain invoice management). The research concludes that innovating tax administration models is imperative for adapting to the digital economy, requiring synergistic advancement across technological empowerment, institutional safeguards, and international cooperation to achieve comprehensive improvements in tax fairness, administrative efficiency, and the business environment.