Measuring the Mediating Role of Digital Transformation in Enhancing the Effectiveness of Fiscal Policy in Reducing Tax Evasion and Tax Fraud in Algeria

Abstract

This study explores the influence of digital transformation in tax administration as a mediating factor in enhancing the effectiveness of fiscal policy to reduce tax evasion and fraud in Algeria. The research seeks to evaluate how integrating digital tools can support fiscal mechanisms in addressing persistent tax violations. Based on a sample of 360 responses from tax officials, quantitative data were collected using a structured questionnaire and analyzed through structural equation modeling with the support of SPSS and AMOS software. The analysis demonstrates that digital transformation has both a direct and indirect impact on limiting tax evasion and fraud, while fiscal policy itself exerts a significant role in addressing these issues. The mediation of digital transformation also reinforces the positive influence of fiscal policy on tax compliance. The results underscore the importance of adopting advanced digital strategies to modernize tax administration processes, increase operational transparency, and improve policy outcomes. The study concludes by recommending the development of integrated digital infrastructures, the reinforcement of staff competencies in digital systems, and the revision of regulatory frameworks to minimize legal loopholes