This study explores how digital taxation reforms influence the shadow economy, auditing processes, and financial reporting practices at the local government level in Türkiye. It focuses on the factors shaping tax performance in public administration. The research adopts a qualitative approach based on in-depth interviews with 15 professionals from the Financial Services Directorate of the Ataşehir Municipality in Istanbul. The findings suggest that digital tax systems bring practical benefits, especially in terms of saving time and improving access to data. These changes appear to support auditing and financial reporting processes and may also help reduce informal economic activities by encouraging taxpayer compliance. At the same time, the results show that such benefits do not emerge automatically. Their effectiveness depends on factors such as taxpayer awareness, digital literacy, the availability of qualified staff, and the clarity of institutional and legal arrangements. While the findings are drawn from the Ataşehir Municipality, they also offer broader insights into public sector digitalization, particularly regarding the role of e-taxation in reducing the shadow economy and strengthening fiscal accountability.
Akdoğan et al. (Tue,) studied this question.