Citizens' Perspectives of AI Adoption in Taxation and Its Effects on Long-Term Voluntary Tax Compliance and Socio-Cultural Norms in Botswana

Abstract

The government of Botswana continues to face the unprecedented challenge of tax noncompliance. In response to tax noncompliance, the Botswana Unified Revenue Service proposed the fusion of AI into the domain of tax. For the revenue service authority to discover the potential benefits of AI, the impact of adopting AI in the domain of taxes on long-term compliance behaviour must be thoroughly investigated. This study aimed to determine the influence of AI on long-term compliance and sociocultural norms in Botswana. This study employs a qualitative research approach; utilising data collected from interviews to delve into citizens’ perceptions regarding the diffusion of AI into the tax system and its effect on tax compliance and sociocultural norms. The qualitative data collected was analysed through thematic analysis. The findings of this study suggest that the deployment of AI in the tax domain has the potential to positively influence voluntary tax compliance in Botswana, as perceived by the participants. However, the introduction of AI may also lead to disruptions in sociocultural cohesion, with stakeholders expressing concerns about its broader social impact. This study contributes to the ongoing debate on AI and taxation by developing a ‘four pillars of the harmonised artificial intelligence framework’, which facilitates the adoption of AI in the tax domain.