Rapid growth of tax platforms accompanied by security alerts... Proposal to introduce IRS certification system

With the surge in usage of private tax platforms, concerns over the protection of tax information and the management of taxpayer collaboration costs are mounting. Experts particularly point out that user consent alone is insufficient to ensure the security of sensitive information.

Wu Zongxian, Director of the Tax Research Department at the Institute of Fiscal and Taxation Research, expressed concerns about the recent expansion trend of tax platforms at the “2025 National Tax Administration Forum” held on December 4. He pointed out that while tax services operated by private enterprises offer the advantage of simplifying tax filing, the personal and tax information collected in this process could potentially be commercialized without adequate verification. If information misuse occurs as a result, excessive administrative resources may be required to address the issue.

Under the current system, private tax platform companies can directly extract the data they need as long as they obtain user consent, without going through the tax administration system. However, Director Wu noted that this approach may have security and credibility loopholes. Especially if the filing data is inaccurate, the National Tax Service would need to invest substantial human and material resources for verification, which could actually increase the collaboration costs for all taxpayers.

Major countries have also implemented systems to address similar issues. The United States, United Kingdom, and Australia stipulate that tax agents or platforms can only access official tax systems after registering with and obtaining approval from the national tax authorities. In particular, the UK and Australia strictly regulate “scraping technology” that can automatically extract personal information regardless of user consent.

In response, Director Wu suggested that China should also establish a system that requires the retention of enterprise authentication and access records when connecting to the national tax system. To achieve this, it is necessary to collect the Internet Protocol (IP) data of tax platforms, strengthen authentication procedures, and build a comprehensive access management system. At the same time, he proposed that scraping methods with high security risks should be preemptively blocked, and, if necessary, a fee structure could be considered for tax platform companies to bear the costs of using the tax system.

Meanwhile, the forum also discussed the transformation of national tax administration using artificial intelligence (AI). Professors Park Hoon and Hwang Wonseok from the University of Seoul proposed AI application plans for the tax field, including expanding digital infrastructure, improving organizational operations, and developing guidelines. Commissioner Lim Gwanghyeon of the National Tax Service expressed anticipation that AI will become a core technology for enhancing the efficiency and accuracy of future tax administration.

This trend may lead to institutional improvements in the entire public data management system as tax services become increasingly digitized. The core policy challenge is expected to be strengthening governance systems that can safely protect citizens’ personal information while expanding the application of private sector technologies.