The digital transformation of tax audits: how AI, big data, blockchain, and advanced analytics are reshaping tax evasion detection

Purpose This study examines how emerging digital technologies—particularly artificial intelligence (AI), machine learning, big data analytics, and blockchain—are transforming tax audit practices. The research aims to synthesize existing evidence on the role of these technologies in improving audit efficiency, detection accuracy, and enforcement effectiveness across different jurisdictions.Design/Methodology/Approach A systematic literature review was conducted using a PRISMA-guided methodology. Peer-reviewed publications published between 2017 and 2024 were collected and screened, resulting in a final sample of 23 studies. The selected studies were analyzed and synthesized to identify dominant technological applications, institutional contexts, and emerging research patterns in technology-enabled tax auditing.Findings The review identifies four major thematic clusters: AI-enabled automation in audit processes, blockchain-based audit integrity and traceability, data-analytics-driven risk detection, and regulatory and institutional readiness. The findings indicate that technologically advanced jurisdictions achieve significant improvements in audit precision, real-time anomaly detection, and transactional transparency. In contrast, developing economies face persistent challenges related to digital infrastructure limitations, technical capacity constraints, and fragmented regulatory frameworks.Originality/Value This study contributes to the tax administration literature by providing a comprehensive taxonomy of emerging tax audit technologies and offering a cross-jurisdictional synthesis of their effectiveness. It also proposes a conceptual framework integrating technological drivers, institutional moderators, and audit performance outcomes, thereby offering a structured perspective for analyzing digital audit transformation.Practical Implications The findings highlight important policy considerations for tax authorities and policymakers, particularly the need to strengthen data governance frameworks, invest in auditor digital competencies, and adapt regulatory systems to support the implementation of technology-enabled tax audit mechanisms.