An Overview of Tax Collection in Modern Civilisation and Growth of the Social Media Platforms

INTRODUCTION Taxes are the primary contributor to the government’s revenue required for the fulfilment of the government’s responsibilities towards its citizens, under enormous pressure to collect more revenue. The rapid advancement of the digital economy provides an opportunity for the expansion of the tax base as more people earn income through social media platforms. Social media platforms are no longer solely used by individuals but also by companies to gain a competitive advantage in marketing and sales.Instagram, YouTube, Twitter, Facebook, and LinkedIn are a few of the popular social media platforms currently booming on the internet.Cases of tax evasion amongst social media influencers are becoming more frequent. The increased use and demand of social media have no doubt provided people with opportunities to earn some form of income, thereby improving the livelihood of many. However, it should be noted that intentional tax evasion is not the only reason why social media content creators do not declare their income to tax authorities. An exploratory study in Indonesia investigated the tax compliance of millennial influencers. The study found that taxpayers need to be educated about tax compliance and insufficient understanding of taxation was noted as the main reason for non-compliance (Prihatiningtias & Karo, 2021:137). Whether intentional or not, the issue of non-compliance needs to be addressed. Therefore, the purpose of this study is to explore potential methods that can be employed to collect taxes arising from income earned from social media platforms and thus generate more revenue for the government.