The impact of ontology-based knowledge management on improving tax accounting procedures and reducing tax risks

Abstract

This paper aims to investigate the impact of ontology-based knowledge management on improving tax accounting procedures and reducing tax risks, specifically focusing on the income tax system in a developing country. To achieve this objective, a mixed methodology approach was adopted, combining quantitative and qualitative data collection and analysis methods. The data were gathered through document analysis, interviews, and questionnaires administered to stakeholders in the Egyptian Income Tax Authority. The findings of this study hold significance for both academic researchers and accounting practitioners. The results demonstrate numerous advantages associated with the utilization of ontology in tax management. It has the potential to reduce costs in tax advisory services, minimize errors in tax calculations, and enhance tax revenue generation by promoting transparency and accountability. The empirical analysis further confirms a positive correlation between ontology-based knowledge management and improved accountability procedures, as well as a positive correlation with the reduction of tax risks. These statistically significant relationships (r = 0.85, p < 0.01 and r = 0.79, p < 0.01, respectively) provide empirical evidence of the actual effects of implementing ontology-based knowledge management in improving tax accounting procedures and mitigating tax risks.